Gombe State Governor, Muhammadu Inuwa Yahaya has ordered the immediate implementation and enforcement of the Treasury Single Account (TSA) in the state in order to check excesses and extravagant spending by government officials.
To ensure that the system was implemented without delay, the governor signed in to law Executive Order No. 5 of 2020 which authorises the immediate implementation and enforcement of the TSA in Gombe State.
The order which was signed by the governor on Monday, July 13, 2020, is sequel to government’s resolve to centralise and consolidate all cash and investment balances in banks and other financial institutions with a view to having a real-time liquidity position of the state in a single view as well as eliminate operational inefficiencies and costs associated with maintaining multiple accounts across multiple financial institutions.
The governor, by virtue of the authority vested in him by the constitution of the Federal Republic of Nigeria, 1999 and all other laws enabling him in that behalf, ordered the immediate and effective implementation and enforcement of the Treasury Single Account hereinafter referred to as (TSA) in Gombe State.
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He further ordered for the maintenance of main TSA in a single banking institution and maintenance of associated zero balance ledger sub-accounts (ZBAs) where they exist in other institutions from where balances shall be swept to the main TSA in the Central Bank of Nigeria (CBN) or the appointed main TSA hosting financial institution.
It should be done with the strict enforcement, operation and implementation of the TSA in accordance with the Cash Management Strategy (CMS) of Gombe State that came into effect in the year 2019.
According to the Order, the governor may revise or modify the order as he deems fit and it shall take effect from the date it was signed.
The Executive Order identified some factors that led to the enforcement of the new financial policy which includes weaknesses in the existing practice of preparing monthly payment schedules for governor’s approval in which budgeted resources flow to MDAs.
Other factors are weak cash planning processes that hinder cash forecasting and its alignment with government spending, the inability of the Treasury division of the state Ministry of Finance to have a real-time view of the liquidity position of government; thus hindering its ability to efficiently plan and manage idle resources as well as eliminate liquidity mismatch which has led to the budget deficit and poor budget performance.
Also according to the order, Gombe State Financial Regulations 2012, Gombe State Council on Procurement and Public Procurement Bureau Law 2019, Gombe State Fiscal Responsibility (Amendment) law, 2019 and Gombe State Internal Revenue Service and Revenue Administration Law (codification and consolidation) Law, 2020 provided the framework for the cash management strategy as well as enforcement of the TSA in the state.
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