Public conversations around the Treasury Single Account (TSA) have resurfaced. This makes it crucial for Nigerians to understand how the TSA contribute to fiscal transparency and financial efficiency.
1. TSA Was Designed to Centralise Public Funds and Block Leakages: Introduced in 2011 and fully implemented in 2015, the TSA was established to consolidate government revenues into a single account at the Central Bank of Nigeria (CBN). It replaced a disjointed system that enabled mismanagement and leakages.
2. Remita Was Chosen After Transparent Bid: Originally developed by SystemSpecs and now operated by Remita Payment Services Limited, Remita was selected after a major bid process that included international companies.
3. Saves Nigeria billions of Naira in monthly interest payments: Over 17,000 accounts held by MDAs across commercial banks were shut down after TSA implementation, reducing duplication, waste, and administrative costs. Nigeria saved ₦45 billion monthly in interest payments
4. TSA Enables Real-Time Visibility and Accountability: With Remita’s integration, government agencies can monitor inflows and outflows in real time. This enhances compliance with budgets and reduces the potential for fraud.
5. TSA Reinforces Fiscal Discipline in Government Spending: Funds in the TSA can only be accessed after legislative appropriation, preventing unauthorised withdrawals and enforcing fiscal discipline.
6. TSA in Nigeria Has Been Endorsed locally and Internationally: Nigeria’s TSA implementation has been recommended by the local private and public institutions, and World Bank as a model of best practice. Remita proved that indigenous solutions can solve complex national problems
7. Remita Facilitates Payments Without Holding Government Funds: Remita functions as a payment gateway. It does not keep, invest, or control public money. All payments flow directly into the CBN.
The TSA remains one of the most transformative public finance reforms in Nigeria’s history. In these times of economic uncertainty, the TSA is more than a fiscal tool. It is a strategic national asset that demands consistent institutional commitment, recognition of local innovation, and a genuine effort to uphold accountability and fairness in public-private partnerships.
