President Stops Multiple Accounts By NNPC, FIRS, Customs, Others; Govt Opens Treasury Single Account

President Muhammadu Buhari on Sunday ordered all ministries, agencies and departments of government to stop forthwith the operation of multiple bank accounts for the purpose of keeping revenues and incomes. The Presidential order affects the Nigerian National Petroleum Corporation, the Central Bank of Nigeria, the Federal Airports Authority of Nigeria and the Nigerian Maritime Administration and Safety Agency.

Also on the list are the Security and Exchange Commission, the Corporate Affairs Commission, the Nigerian Ports Authority, the Federal Inland Revenue Service, the Department of Petroleum Resources and the National Civil Aviation Authority, among others.

The Punch/The Nation report continues:

All the agencies must henceforth maintain a Treasury Single Account, domiciled with the CBN for revenues and other receipts.

The new directive was contained in a statement made available to journalists by the Senior Special Assistant to the Vice President on Media and Publicity, Mr. Laolu Akande, on Sunday.

Akande explained that the directive was meant to promote transparency and facilitate compliance with Sections 80 and 162 of the 1999 Constitution.

“Henceforth, all receipts due to the Federal Government or any of its agencies must be paid into TSA or designated accounts maintained and operated in the Central Bank of Nigeria, except otherwise expressly approved,” the statement said.

It explained that the presidential directive would end the previous public accounting situation of several fragmented accounts for government revenues, incomes and receipts.

He said the existing system had led to loss of legitimate income meant for the Federation Account, and that the directive applied to fully-funded organs of government like ministries, departments, agencies and foreign missions, as well as the partially-funded ones, including teaching hospitals, medical centres and federal tertiary institutions.

“For any agency that is fully or partially self-funding, sub-accounts linked to TSA are to be maintained at CBN and the accounting system will be configured to allow them access to funds based on their approved budgetary provisions,” the statement explained.

A TSA, according to Akande, is a unified structure of government bank accounts, enabling consolidation and optimal utilisation of government cash resources.

He said the system would allow the government to transact all its receipts and payments and get a consolidated view of its cash position at any given time.

Buhari had during the inaugural meeting of the Vice President Yemi Osinbajo-led National Economic Council, on June 29, promised state governors that all revenues prescribed for lodgement into the Federation Account would be treated as such under his watch.

He had also promised to ensure strict compliance with all relevant laws on accounting, allocation and disbursement.

Meanwhile, the Revenue Mobilisation Allocation and Fiscal Commission on Sunday said the mining sector had contributed over N2bn to the federation account.

The Chairman, RMAFC, Elias Mbam, according to a statement, said this during a meeting with the executive officers of the Miners Association of Nigeria, led by the association’s president, Sani Shehu.

Mbam, in the statement issued by the commission, was also said to have unveiled plans to collaborate with the miners association in order to enhance the revenue generation potential of the sector.

The statement read in part, “The chairman commended the executives and members of the association for their sustained interest in the growth and development of the solid minerals sector in spite of the enormous challenges, promising to partner the association in its quest to diversify the economy, especially in the face of dwindling oil revenue.

“In this regard, he disclosed that the commission has supported the development of the sector through the Natural Resources Fund domiciled in the CBN.

“Mbam stressed that the Sector has contributed over N2bn into the Federation Account.”

Govt Opens Treasury Single Account For NNPC, FIRS, Customs, Others

The Nation reports all monies accruing to the Federal Government will henceforth be remitted into a Treasury Single Account (TSA). Vice President Prof Yemi Osinbajo, who broke the news in a statement by his media aide, Mr. Laolu Akande, said President Muhammadu Buhari directed all Ministries, Departments and Agencies (MDAs) to be paying into the TSA all government revenues, incomes and other receipts.

The MDAs include: Central Bank of Nigeria (CBN); Security and Exchange Commission (SEC); Corporate Affairs Commission (CAC); Nigerian Ports Authority (NPA); National Communications Commission (NCC); Federal Aviation Authority (FAAN) and Nigerian Civil Aviation Authority (NCAA).

Others are: Nigerian Maritime Administration and Safety Agency (NIMASA); Nigerian Deposit Insurance Corporation (NDIC); Nigerian Shippers Council (NSC); Nigerian National Petroleum Corporation (NNPC); Department of Petroleum Resources (DPR); Federal Inland Revenue Service (FIRS); Nigerian Customs Service (NCS) and Ministry of Mines and Steel Development (MMSD).

The vice president said the directive was part of measures specifically designed to promote transparency and facilitate compliance with Sections 80 and 162 of the 1999 Constitution.

The statement reads: “Henceforth, all receipts due to the Federal Government or any of its agencies must be paid into TSA or designated accounts maintained and operated in the Central Bank of Nigeria (CBN), except otherwise expressly approved

“A TSA is a unified structure of government bank accounts enabling consolidation and optimal utilisation of government cash resources.

“It is a bank account or a set of linked bank accounts through which the government transacts all its receipts and payments and gets a consolidated view of its cash position at any given time.

“This presidential directive would end the previous public accounting situation of several fragmented accounts for government revenues, incomes and receipts, which in the recent past has meant the loss or leakages of legitimate income meant for the Federation Account.

The new directive was in fulfillment the promise President Buhari made to state governors at the inaugural meeting of the National Economic Council (NEC) in June.

At the meeting, the President assured them that all revenues prescribed for lodgment into the Federation Account will be channeled to the proper account under his watch.

He also promised to ensure strict compliance with all relevant laws on accounting, allocation and disbursement of national revenue.

Osinbajo said the presidency has since been working with relevant agencies of the Federal Government to evolve the new policy directive.

According to the statement, “this directive applies to fully funded organs of government like the Ministries, Departments, Agencies and Foreign Missions, as well as the partially funded ones, like Teaching Hospitals, Medical Centres, Federal Tertiary Institutions among others.

“Agencies like the CBN, SEC, CAC, NPA, NCC, FAAN, NCAA, NIMASA, NDIC, NSC, NNPC, FIRS, NCS, MMSD and DPR are also affected.

For any agency that is fully or partially self-funding, sub-accounts linked to TSA are to be maintained at CBN and the accounting system will be configured to allow them access to funds based on their approved budgetary provisions.