The Treasury Single Account (TSA) which was introduced by the President Muhammadu Buhari led administration in 2015 is under sever threat as government has failed to pay banks and other service providers that have kept the policy going for the past two years.
This was disclosed by the chairman of the House of Representatives Ad-hoc Committee on TSA, Dr. Abubakar Damburam Nuhu in a Channels Television programme monitored in Lagos.
According to Damburam-Nuhu “it is unfortunate that two years down the line, commercial banks, as well as the fintech company, that have kept TSA running have not been paid for services rendered.” He wondered what would happen to the policy if the companies being owed refused to continue to offer service until they are compensated.
In the course of the television programme, which was designed to highlight key findings of a TSA Audit conducted by his committee in 2017, Damburam-Nuhu said that the reason such abnormality could continue is that there is no legislative framework or law that particularly addresses all the challenges that the implementation of TSA has thrown up.
When the federal government introduced TSA in 2015, the primary goal was to activate a mechanism that would block the financial loopholes through which government funds were being siphoned. So far, sources within the government say that the policy has stopped the hemorrhaging of the treasury and that government agencies and institutions are now been effectively monitored.
TSA is said to have eliminated many ghost workers and saved the government N120 billion. In addition to this about N108 billion has been saved from the removal of maintenance fees payable to banks which was the case before the commencement of TSA, according to sources within government.
Damburam-Nuhu noted that other problems facing TSA include the introduction of new technologies that are not related to and integrated with the TSA in some ministries. “For instance, the Ministry of health is trying to come up with its own software, which has not been integrated into TSA,” he said. There is also the issue of MDAs trying to go through the backdoor, so as to avoid paying into TSA.
According to Damburam-Nuhu, the future of TSA will be guaranteed by proper legislative cover which will clearly spell out procedures, responsibility, and the operation of the policy.