Buhari and the single treasury account

A great topic!

The Single Treasury Account (TSA) is a financial management policy implemented by the Nigerian government in 2015, during the administration of President Muhammadu Buhari. The policy aims to consolidate all government revenues and payments into a single account, managed by the Central Bank of Nigeria (CBN).

The TSA was introduced to address several issues, including:

  1. Lack of transparency: The previous system allowed for multiple accounts, making it difficult to track government revenues and expenditures.
  2. Inefficient cash management: The multiple accounts led to cash shortages, as funds were not properly managed and allocated.
  3. Corruption: The lack of transparency and accountability created opportunities for corruption and mismanagement of public funds.

Under the TSA, all government agencies, ministries, and departments (MDAs) are required to deposit their revenues and payments into a single account at the CBN. This account is managed by the CBN, in collaboration with the Federal Ministry of Finance, Budget, and National Planning.

The benefits of the TSA include:

  1. Improved transparency: The TSA provides a single, centralized platform for tracking government revenues and expenditures, making it easier to monitor and account for public funds.
  2. Enhanced cash management: The TSA allows for better cash management, as funds are consolidated and allocated more efficiently.
  3. Reduced corruption: The TSA reduces the opportunities for corruption, as all transactions are tracked and accounted for in a single, transparent system.
  4. Increased accountability: The TSA promotes accountability, as government officials are held responsible for managing public funds effectively and transparently.

To implement the TSA, the government has taken several steps, including:

  1. Consolidation of accounts: All government agencies, MDAs, and other entities have been required to consolidate their accounts into a single account at the CBN.
  2. Implementation of a payment platform: The government has implemented a payment platform, known as the Treasury Single Account (TSA) Payment Platform, to facilitate payments and transactions.
  3. Training and capacity building: The government has provided training and capacity building for government officials and staff to ensure they understand the TSA and can effectively manage public funds.

Overall, the TSA has been a significant step towards improving the financial management and accountability of the Nigerian government. While there have been some challenges and teething issues, the policy has generally been well-received and has helped to reduce corruption and improve transparency in government finances.