The Federal Government said it had successfully moved all the capital accounts of its Ministries, Departments and Agencies to the Central Bank of Nigeria.
The Minister of Finance, Dr. Ngozi Okonjo-Iweala, who confirmed the development in a statement made available last week, said the move would help the central bank to effectively manage the funds of the government.
She also said the new electronic collection platform, which the government unveiled in January this year for revenue generating agencies, would improve the availability of funds for financing of developmental projects and budgets as well as plug loopholes in government revenue collection and management.
The minister said instead of the agencies operating multiple accounts that were not being used, the new platform would enable the government to manage its account balances effectively.
She said while the capital accounts had been successfully moved to the CBN, efforts were being made to ensure that the recurrent accounts were similarly moved within the shortest time possible.
Okonjo-Iweala said, “With the treasury single account, we have a tool that helps us to see the balances of governments at one time from all government agencies because we are drawing resources into the central bank.
“Instead of agencies with multiple accounts everywhere, which are not being used, and on the other hand you go borrowing, we will have an overview and it will help us to manage our balances much better.
“There is no too much of a choice; everybody has to comply. We don’t want to look as overbearing; so, we are discussing with the agencies and the banks. We have already got all the capital accounts into the central bank and gradually we are getting the recurrent accounts. It also helps the central bank to manage liquidity.”
The minister hinted that while many of the MDAs did not like the electronic collection platform, the government was determined to ensure that all of them complied so that all government funds would now be managed under the TSA with the CBN.
She said, “Many of the MDAs don’t like the idea of the e-collect and the Treasury Single Account. But we are getting them because it is a conversation that we will be having on this issue and we are getting them to see that they need to comply.
“During this time, our objective is to get as much internal revenue generated with the e-platforms that will put the money in an account at the central bank. This will help us avoid leakages, which is what all Nigerians want.”
The Accountant-General of the Federation, Mr. Jonah Otunla, had during the unveiling of the e-collection platform, said the initiative was a product of a series of treasury reforms that began in 2012 and aimed at ensuring transparency and accountability in the management of the nation’s resources.
The reforms, he stated, led to the introduction of the Government Integrated Financial Management Information System and the Treasury Single Account.