The Nigerian Federal Government has reinforced its commitment to the Treasury Single Account (TSA) policy, directing all Ministries, Departments, and Agencies (MDAs) operating in states to cease maintaining accounts with commercial banks. This directive, issued by the Accountant-General of the Federation, Dr. Oluwatoyin Madein, during a working visit to the Federal Pay Office in Benin, Edo State, underscores the government’s determination to streamline public financial management and enhance transparency and accountability in government operations. The TSA policy, which mandates the consolidation of all government revenues into a single account held by the Central Bank of Nigeria, aims to eliminate the fragmentation of government funds, improve cash management, and reduce the cost of borrowing. Dr. Madein’s directive reinforces the mandatory nature of the TSA policy for all federal MDAs and emphasizes the gravity of circumventing its provisions.
The Accountant-General’s directive is categorical: no MDA is permitted to operate accounts with commercial banks without explicit presidential approval communicated through the Office of the Accountant-General of the Federation (OAGF). This stipulation further strengthens the TSA framework and emphasizes the centralized control and oversight of government funds. By channeling all government revenues through a single account, the TSA enhances the government’s ability to monitor and manage its financial resources, ensuring that funds are readily available for budgeted expenditures and reducing the need for costly short-term borrowing. This centralized approach also enhances transparency by providing a consolidated view of government revenues and expenditures, making it easier to track the flow of public funds and identify potential areas of mismanagement or corruption.
Federal Pay Officers (FPOs), who play a critical role in the implementation of the TSA policy at the state level, have been charged with ensuring strict adherence to the directive. They are responsible for monitoring the financial activities of MDAs within their respective states and ensuring that no MDA operates accounts with commercial banks outside the TSA framework. This places a significant responsibility on FPOs to act as gatekeepers of the TSA policy, safeguarding public funds and upholding the principles of financial probity. The Accountant-General’s emphasis on FPOs’ role reinforces the importance of decentralized monitoring and enforcement of the TSA policy to ensure its effectiveness across all levels of government.
Dr. Madein’s visit to the Benin Federal Pay Office is part of a broader nationwide tour to assess the operations and challenges faced by FPOs across the country. This on-the-ground assessment demonstrates the government’s commitment to understanding the practical realities of implementing the TSA policy and addressing any operational bottlenecks that may hinder its effectiveness. By engaging directly with FPOs, the Accountant-General can gather valuable insights into the challenges they face and identify strategies to strengthen their capacity to enforce the TSA policy. This proactive approach underscores the importance of continuous monitoring and evaluation to ensure the long-term success of the TSA policy.
The Accountant-General also stressed the importance of maintaining professional ethics and accountability among FPOs. She urged them to uphold transparency in their duties and avoid any actions that could compromise the integrity of the Federal Treasury. This emphasis on ethical conduct highlights the government’s commitment to fostering a culture of accountability and integrity within the public sector. By promoting ethical behavior among FPOs, the government aims to strengthen public trust in the management of public funds and ensure that the TSA policy is implemented in a manner that upholds the highest standards of probity.
Furthermore, Dr. Madein emphasized the need for accurate financial record-keeping in line with regulatory standards. She noted that periodic checks would be conducted by officials from the Treasury headquarters to ensure compliance. This rigorous monitoring mechanism reinforces the government’s commitment to ensuring the integrity of financial records and preventing any irregularities in the management of public funds. The regular audits will serve as a deterrent against financial mismanagement and provide an additional layer of oversight to ensure that the TSA policy is being implemented effectively. The construction of new Federal Pay Offices in some states, as announced by the Accountant-General, is a further demonstration of the government’s commitment to strengthening the infrastructure and operational capacity of FPOs to effectively implement the TSA policy. This investment in infrastructure will provide FPOs with the necessary resources and facilities to discharge their duties effectively and contribute to the successful implementation of the TSA policy. By prioritizing the welfare of its personnel and ensuring compliance with financial regulations, including the Public Procurement Act and the Constitution, the OAGF is creating an enabling environment for FPOs to carry out their responsibilities effectively.
