IMF backs FG on implementation of TSA

International Monetary Fund (IMF) and the Federal Government have begun plans to improve the operation of the Treasury Single Account (TSA) and proffer solutions to some of the challenges surrounding it.

The Federal Government, in its drive to stem the tide of financial haemorrhage and block loopholes in all its ministries and parastatals, introduced the TSA, and President Muhammadu Buhari said his administration had within three months saved N2.2 trillion, since its introduction.

At a day workshop on TSA for states accountants-general by the Office of the Accountant General of the Federation, Sailendra Pattanayak, IMF senior economist in the Fiscal Affairs Department, expressed full backing for the operation of TSA in the country, saying the development had further enhanced prudence in government’s spending and eliminated high borrowing cost experienced in the past.

“The main benefit of TSA, as some of the examples have been given, is to eradicate some of the idle balances that were lying in commercial bank accounts, governments were required to borrow at a very high cost. We noticed cash resources holding elsewhere, but with this TSA coming in place, all the cash resources have been consolidated in one single account with various sub accounts link to it,” Pattanayak said.

He promised that while TSA was still a work in progress in Nigeria, the “IMF would offer modalities that will further enhance the missing links in the smooth running of TSA.”

The Accountant General of the Federation, Ahmed Idris, in his opening remark, said the workshop, aimed at sensitising states accountant generals on what the TSA was all about, the benefits accruable from its implementation and the experience of the Federal Government so far, said the need to stem financial haemorrhage and block loopholes informed government’s decision to kick start the implementation of the TSA.

In her keynote address, Kemi Adeosun, minister of finance, represented by Adeseye Senfuye, said the Federal Government’s experience on TSA had been worthwhile as “it has provided complete and timely information on government cash resources, improved operational control on budget execution, enabled efficient cash management, reduced bank fees and transaction costs.”

KEHINDE ABDULSALAM