Federal Government Saves N56.4 Billion Annually on Bank Charges

The Accountant General of the Federation, Alhaji Ahmed Idris, has said the implementation of the Single Treasury Account (TSA) is saving the Federal Government N4.7 billion monthly (N56.4bn annually) on bank charges on the funds.

TSA was introduced in August 2015 and as at February 10, 2017, the total inflow of funds through the mop-up and direct debits by Central Bank of Nigeria amounted to N5.244 trillion, being funds of the various ministries, departments and agencies of government, data from the office of the AGF showed.

The AGF gave the figures in Abuja at a one-day workshop for finance journalists on the TSA and other public financial management reforms.

He explained that before TSA was introduced, about N4.7bn was incurred monthly by the Federal Government as bank charges, interest on loans, and account maintenance fees among other bank charges.

“TSA has taken us out of the era of indiscriminate borrowings by MDAs and saved government the charges associated with those borrowings which hitherto amounted to N4.7bn monthly. I can therefore confidently assert that TSA has been beneficial to all stakeholders and the country as a whole,” he stated.

He said those chargers have now stopped since the funds were now kept with the CBN and not the commercial banks, adding that TSA has also blocked leakages that hitherto bled the Federal Government.

The AGF also noted that apart from blocking leakages, the TSA policy has assisted government in overcoming the burden of indiscriminate borrowings by MDAs and associated interests and charges on them.

“TSA has enabled us to make tremendous gains to the Federal Government and to the Nigerian economy. We have successfully eliminated multiple banking arrangements resulting in consolidation of over 20,000 bank accounts which were spread over deposit money banks across the country,” he said.

Alhaji Ahmed said, “This has further brought about transparency and effective tracking of government revenues. It has also led to the blocking of leakages and abuses which characterised the public financial management before the implementation of the TSA.”

He said that the workshop was part of efforts to increase the level of consciousness on why the Federal Government deemed it necessary to carry out the public finance management reforms, noting that a major objective of the reforms was to support the fight against corruption in the country.

On the payment of backlog of promotion arrears for civil servants, the AGF said that the Federal Government had commenced the process and that all those affected would soon be paid.

He said henceforth, the accounts of those that were promoted and were owed arrears would be credited directly after all the necessary verification exercises.

He said about N13.2bn had been provided for the payment of backlogs of promotion for civil servants.

 

Source: DailyTrust

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