Treasury Single Account
Treasury Single Account, TSA, I am informed, is a sole federal account domiciled in the Central Bank of Nigeria, CBN, into which all funds belonging to Ministries, Departments and Agencies, MDAs are now mandated to be deposited!
So, as all MDAs are thus required to close the thousands of accounts domiciled in commercial banks whose sheer number makes them rather unwieldy and hard, if not outright impossible to monitor and follow! Such a step would achieve the following in the long run:
a. It would be easier to monitor federal funds.
b. The commercial banks would be more creative and more responsible as they would now lend money to SMEs, agricultural, mining and industry to source for funds from interest accruals from loans....their primary function!
c. As banks do this, funds would be made available as loans to investors and entrepreneurs to truly grow the economy. It is a fact that it is actually SMEs who grow the economy!
d. Commercial banks and their public (official) collaborators can no longer benefit from "round-tripping"....a process where they keep government funds idle in commercial banks only to go a-borrowing same funds with interest from same banks!
e. Such banks can no longer collude with civil servants to harbour pension funds, salary funds and other funds just to generate interests in fixed deposits while workers and pensioners starve to death!
f. Banks would now accept meagre funds from depositors which aggregately, can sum up as huge funds to run their operations.
g. They would get more involved is selling consumer goods at extra cost to customers. The extras accrue to the banks as charges!
This policy, which is rather mere acquiesce to the constitution, may lead to staff prunnings in commercial banks in the short run as such banks are deprived of illicit funds, it can only yield huge benefits in the long run!
It is rather ingenious of Mr President to have wiped this slate of rot clean, and brought sanity to bear on the machinery of governance before bringing "outsiders" into the fray. By this, I mean the delayed appointment of ministers which should constitute his executive cabinet!
While persons of little faith and limited patience nicknamed him "Baba Go-Slow", as he appointed only few aides, compelled regular briefings by Permanent Secretaries, he consulted far and wide and deferred the constitution of his cabinet till the very end....when they can only blend with these "new and improved" procedures!
The General knew where he was going.
He had a clear vision of the steps he would take in this "operation" to win the greatest war he would be called to prosecute in his military life, The War Against Corruption!
He refused to be rushed!
Dr Tosin Akindele is a medical practitioner and public affairs analyst.