NECA points to snag in TSA implementation

wants NSITF, NHIS others exempted

The organised private sector under the aegis of Nigeria Employers’ Consultative Association (NECA) has provided reason why some agencies of the Federal Government, including the Nigerian Social Insurance Trust Fund (NSITF) and others, should be spared the implementation of the Treasury Single Account (TSA) policy recently introduced by the government.

Segun Oshinowo, director-general, NECA, stating case for the exemption of NSIFT, averred that the critical role the agency played would be disrupted with serious social and economic implications as a consequence.

“NECA as a ‘voice of business’ commends the TSA initiative as it provides the mechanism for proper monitoring of government receipts and expenditure. We are without doubt that the policy will help to block most if not all the leakages that have been the bane of the growth of the economy.

“The only snag, however, in the new dispensation is that the activities of self-funding and service rendering parastatals with statutory responsibilities to deliver public goods and services have been highly curtailed if not paralysed,” Oshinowo said.

“For agencies of government that generate their own income who are partially or fully funded outside the budgetary allocation, who have responsibility of rendering services to the private sector through funds generated, we are concerned that these agencies’ performances might be negatively impacted through difficulty in accessing necessary funds as and when required to function optimally,” said Oshinowo.

He listed such agencies to include Nigeria Social Insurance Trust Fund (NSITF) saddled with the management of the Employee Compensation Scheme (ECS), Industrial Training Fund (ITF), which has the responsible for training funds reimbursements, and the National Health Insurance Scheme (NHIS).

NECA argued that it would be inappropriate to treat funds generated by these agencies as funds for the government. According to the employers’ body, “the Acts setting up these agencies mandates them to render annual income and expenditure on the funds under their custody.”

Oshinowo therefore canvassed that the exemption granted agencies such as Bank of Industry, Bank of Agriculture and the Federal Mortgage Bank of Nigeria, in the TSA implementation, should be extended to similar agencies and parastatals.