TheCable

The Central Bank of Nigeria (CBN) has set out guidelines for the implementation of Treasury Single Account (TSA) across the 36 states of the federation.

The guidelines direct the closure of all state government accounts in various deposit money banks (DMBs) as soon as the state government has applied and selected any TSA model of its choice.

“State Governments continue to face intense pressure on their cash flows in the face of dwindling revenues and the need to meet increasing statutory and social responsibilities,” the guideline reads.

“To address this issue, State Governments are undertaking financial and treasury management reforms of which the Treasury Single Account (TSA) scheme is a major component.

“This is consistent with the strategic public sector transformation initiatives and also in line with the provision of Section 120 of the 1999 Constitution.

“The Central Bank of Nigeria (CBN), in exercise of its powers, as provided in the CBN Act, 2007, Section 47, sub section 2(2d), hereby issues the following guidelines on the management and operation of the Treasury Single Account (TSA), hosted with the CBN, by State Governments.”

The guidelines stipulate that the state accountant general shall “assume primary responsibility for the State Government’s TSA initiative” and “coordinate the development of the State’s TSA Policy and framework”.

Once the policy is in place, the “government agencies are not to operate ANY bank account under any guise, outside the purview and oversight of the Treasury.

“The consolidation of government cash resources should be comprehensive and encompass all government cash resources, both budgetary and extra-budgetary.

“This means that all public monies, irrespective of whether the corresponding cash flows are 3 subject to budgetary control or not, should be brought under the direct control of Government.”

The guidelines are however subjected to periodic review by the CBN.