In a recent editorial by your widely read and respected newspaper, titled “Time to Rethink TSA Policy,” the sustainability and continued relevance of Nigeria’s Treasury Single Account (TSA) policy were thoughtfully examined, raising important considerations for policy reassessment. While robust public discourse is essential in any democracy, such discussions must be rooted in accurate context and a comprehensive understanding of the TSA’s objectives and its profound contributions to Nigeria’s public finance landscape.
This piece provides a reasoned response to the editorial, critically examining the concerns raised while juxtaposing them against verifiable facts regarding the TSA.
Background and Purpose of the TSA
It is pertinent to note that the TSA was introduced as a strategic solution to decades of inefficiencies and opacity in the management of public funds. Prior to its implementation, the Nigerian government operated thousands of disparate bank accounts in commercial banks—a structure that resulted in fragmented oversight, rampant leakages, and poor coordination. These accounts often escaped regulatory scrutiny and enabled various forms of financial malpractice.
The TSA was established to unify these accounts, consolidate government cash resources, and enable effective control and oversight by the Ministry of Finance. Its primary goal is to provide the federal government with a consolidated and real-time view of its cash position. This centralisation allows for more efficient cash management, reduces idle balances, minimises the need for costly borrowing, and supports informed fiscal decision-making.
By consolidating government funds into a single account at the Central Bank of Nigeria, the TSA enables accurate forecasting, timely interventions, and responsible fiscal stewardship.
Why the TSA Matters
The editorial expressed concerns about implementation inefficiencies and procedural delays. While these concerns are not without merit, they do not justify discarding a policy that has proven instrumental in advancing fiscal discipline. Most of the reported delays stem from procedural bottlenecks within Ministries, Departments, and Agencies (MDAs) and inadequate training of personnel—not flaws in the TSA policy itself. What is needed is a targeted effort to address these operational issues through process improvements, increased automation, and better training, rather than dismantling a system that underpins transparent public finance management.
A claim was also made that the TSA stifles the autonomy of revenue-generating agencies. However, this interpretation does not align with the actual structure of the policy. The TSA makes provisions for revenue-retaining MDAs, donor-funded projects, and foreign missions through sub-account arrangements that meet operational needs while maintaining central oversight. What it restricts—rightly so—is the unchecked freedom to maintain multiple, unmonitored accounts that were historically prone to abuse.
By enforcing discipline and eliminating this fragmentation, the TSA ensures that public funds are properly accounted for and channelled toward their intended purposes.
Tangible Gains of the TSA
A major claim in the editorial is that the TSA, despite its objectives, has been ineffective in addressing corruption and improving government efficiency. However, this assertion overlooks the measurable progress made since the policy’s implementation.
Over 17,000 unnecessary government accounts have been closed, and more than ₦3 trillion in government funds recovered. These funds were previously scattered across fragmented MDA accounts, making them difficult to track and prone to misuse. Additionally, monthly savings of over ₦24 billion in bank charges have been recorded, significantly reducing interest on “ways and means” borrowing. Cumulatively, this translates to over ₦288 billion saved annually—resources that can be redirected to critical sectors such as healthcare, infrastructure, and education.
Beyond cost savings, the TSA has significantly enhanced financial transparency and accountability in the public sector. For the first time, the government can electronically monitor every inflow and outflow in real-time. This digital visibility has created the most comprehensive audit trail in Nigeria’s public finance history and greatly reduced the likelihood of fraudulent transactions escaping detection.
In a country where opaque financial practices have long eroded public trust, this level of transparency represents a groundbreaking shift.
Economic Stabilisation and Indigenous Innovation
While the editorial questions the sustainability of the TSA amid Nigeria’s economic challenges, it is important to recognise the complexities of the country’s financial landscape. Despite economic turbulence, the TSA played a stabilising role during difficult periods—most notably during the 2016 recession.
By enabling clear insights into government liquidity, the TSA supported more strategic debt management and informed monetary policy decisions. The result was better resource prioritisation, improved economic resilience, and a structured approach to crisis management. Though not headline-grabbing, the TSA’s contribution during this period was pivotal in preventing further deterioration of the financial system.
Another underreported benefit of the TSA is its contribution to indigenous technological advancement. The system is powered by Remita, a payment gateway developed by Nigerian firm SystemSpecs. Over time, Remita has evolved into Remita Payment Services Limited, continuing to handle the TSA’s financial operations. The adoption of this homegrown solution marked a milestone in Nigeria’s technological self-sufficiency—creating jobs, fostering innovation, and strengthening the local tech ecosystem.
Global Recognition and Reform Sustainability
Internationally, the TSA has received recognition from development partners and financial institutions. The World Bank has praised it as a significant milestone in promoting transparency and fiscal discipline. It has also been cited as a model for public financial management reforms in other African countries. In today’s global economy, where donor confidence and international collaboration hinge on fiscal responsibility, the TSA strengthens Nigeria’s credibility and positions it as a reform-oriented nation.
Strengthening Reform Commitment
None of this is to suggest that the TSA is without implementation challenges. Like all major reforms, its success hinges on continuous evaluation, stakeholder buy-in, and policy refinement. What is required now is not reversal, but a renewed commitment to optimising the policy’s outcomes.
This includes improving the operational interface between the Central Bank and the Remita platform, expanding digital infrastructure to accommodate increasing transaction volumes, and ensuring that MDAs are equipped with the necessary tools and training to operate effectively within the TSA framework.
The federal government should also institute routine performance reviews of the TSA, focusing on identifying bottlenecks, enhancing user experience, and strengthening compliance. Agencies that violate TSA directives should face appropriate sanctions, while those that demonstrate efficiency and compliance should be incentivised through performance-based funding.
Conclusion
The TSA is not just a financial policy; it is a symbol of Nigeria’s resolve to manage its resources with integrity and responsibility. It has yielded measurable gains, disrupted entrenched systems of mismanagement, and created the infrastructure for transparent and accountable governance.
Dismantling it now would signal a reversal of progress and suggest that the country lacks the institutional fortitude to sustain difficult but necessary reforms. In the face of temporary challenges, the answer is not to abandon what works, but to fix what hinders it from working better.
Preserving the TSA is not an act of stubbornness, but a reflection of commitment to Nigeria’s long-term national interest. The policy has saved funds, enhanced accountability, empowered local technology, and provided the transparency required for modern governance.
In light of the clear gains of the TSA and the legitimate concerns raised about its execution, what is needed now is not its dismantling, but a sincere effort to improve it. The Presidency should take the lead by convening a roundtable of stakeholders—including policymakers, financial experts, implementing partners, and technology providers—to evaluate its performance, identify areas for refinement, and chart a forward-looking path that preserves its benefits while addressing emerging challenges.
*** written By Samuel Uwagwu
Fintech analyst, Lagos, Nigeria
