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.
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.
