1) Treasury Single Account (TSA) is a public accounting system introduced by the Government of Nigeria, in other to ensure that all government revenue, receipts, income from the ministries, departments, agencies (MDAs) are collected into one single account or set of linked accounts usually maintained by the central bank of Nigeria (CBN).

2) Prior to the time the TSA scheme commenced in 2012, the government was operating multiple accounts for the collection and spending of government revenue which is contrary to the section 80(1) of the 1999 constitution which says “All revenues or other moneys raised or received by the federation (not being revenues or other moneys payable under this constitution or any Act of the National Assembly into any other public fund of the Federation established for a specific purpose) shall be paid into and form one consolidated Revenue Fund of the Federation”. Therefore the constitution requires that government revenues should be remitted into a single account.

3) In 2012, government ran a pilot scheme for a single account using 217 ministries, department and agencies as a test case, it was a successful one, that’s why the government implemented the use of TSA, and this saved the government a lot of money. The government gave directives to banks to implement the technology platform.
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1) Treasury Single Account (TSA) is a public accounting system introduced by the Government of Nigeria, in other to ensure that all government revenue, receipts, income from the ministries, departments, agencies (MDAs) are collected into one single account or set of linked accounts usually maintained by the central bank of Nigeria (CBN).

2) Prior to the time the TSA scheme commenced in 2012, the government was operating multiple accounts for the collection and spending of government revenue which is contrary to the section 80(1) of the 1999 constitution which says “All revenues or other moneys raised or received by the federation (not being revenues or other moneys payable under this constitution or any Act of the National Assembly into any other public fund of the Federation established for a specific purpose) shall be paid into and form one consolidated Revenue Fund of the Federation”. Therefore the constitution requires that government revenues should be remitted into a single account.

3) In 2012, government ran a pilot scheme for a single account using 217 ministries, department and agencies as a test case, it was a successful one, that’s why the government implemented the use of TSA, and this saved the government a lot of money. The government gave directives to banks to implement the technology platform.

4) The platform used to make this payment is called Remita. Remita is an e-payment and e- collection solution platform developed by Systemspecs limited, the platform is used by federal government agencies for the Treasury Single Account (TSA). It makes it easy for organisations and individuals to receive and make payments across multiple channels and financial institutions.

5) The world is fast changing to electronic payments not in cash payment, this is a very good one for Nigeria because TSA has made Nigeria embraced the use of electronic payments, and it promotes world best practices and technological development.

6) The purpose of these is to ensure accountability of government revenue, enhance transparency and avoid misapplication of public funds, proper cash management by eliminating idle funds usually left with the different commercial banks.

7) The Central Bank of Nigeria opened a consolidated Revenue Account to receive all government revenues and effect payment through its accounts. MDAs are supposed to remit all payment/revenues to the TSA account through their individual commercial banks (they are collection agents) the money gotten will be remitted to the CRA with CBN at the close of each banking day, the account must be zero. The account must have a zero balance.

TSA is a great tool for economic development, this will enable ministry of finance monitor fund flow in every government agencies, ministries so that they will spend in line with the approved budget, it will help prevent income leakage, funds will be properly monitored and mobilized, this will also help to prevent corruption.

9) TSA is really a threat to the banking industry because bulk of deposits in the commercial banks belongs to the public sector, about N2.3 trillion of public sector funds was swept out of the commercial banks to CBN. This reduced the liquidity of banks, they now focus on private sectors for deposits e.g. private companies , small and medium enterprises, businessmen and women, banks profitability reduced drastically which made them to retrench a lot of workers to cut cost. Interest rate on fixed deposit was increased so that so that so many people will come and fix their money in the bank, the rate at which banks gives loan is being reduced, there was a drop in profitability, the banking sector has to do more work to survive in the present economic state.

10) Introduction of Treasury single account exposed a lot of accounts that were opened in the name of the government but are being operated by private entities, all the balances in those accounts have been moved to CBN, this has helped to reduce corruption in public finance, also make sure that funds are channelled to the right sector in the economy e.g. Education, health, agricultural development, good infrastructures and electricity.

There you have it my people

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thank you my friend