House Of Reps To Sanction MDAs For Treasury Single Account Violations, Summons Finance Heads

The House of Representatives‘ Public Accounts Committee has announced plans to sanction Ministries, Departments, and Agencies (MDAs) of the Nigerian government for breaches of the Treasury Single Account (TSA) guidelines.

The committee’s chairman, Bamidele Salam, revealed this decision during a hearing in Abuja on Wednesday, highlighting the legislative body’s commitment to enforcing financial discipline among government entities.

In a move to address these violations comprehensively, the committee has summoned key figures in Nigeria’s financial sector: the Governor of the Central Bank of Nigeria (CBN), Mr. Yemi Cardoso; the Minister of Finance, Wale Edun; and representatives from the Office of the Accountant-General of the Federation.

These officials are expected to appear before the committee on February 20, 2024, to discuss the alleged leakages and non-remittance of TSA revenue generated through Remita, a significant payment gateway used by the government.

Salam emphasized that the inquiry aims to promote transparency and accountability within the government’s financial operations and is not targeted at any specific company.

During the hearing, the Managing Director of Remita Payment Service Ltd (RPSL), Mr. Deremi Atanda, clarified the role of Remita in the process, stating that the service does not manage government revenue but rather functions as a software and payment platform.

Atanda also addressed misconceptions about the fees charged for processing TSA payments, confirming that the applicable fee is N150 plus VAT, in line with CBN circulars issued in November 2018 and December 2020.

The committee expressed concerns over the lack of documentation, particularly from the CBN, in contrast to Remita’s provision of a signed contract.

The physical presence of the Minister of Finance, CBN Governor, and Accountant General of the Federation has been deemed necessary for a thorough examination of these issues.

The TSA system was introduced in August 2015 by former President Muhammadu Buhari to enhance the collection of government receipts and ensure compliance with constitutional financial guidelines.

Despite its implementation, some MDAs have been exempted from the TSA, raising questions about the system’s effectiveness and adherence.

The House of Representatives has previously taken steps to enforce compliance with the TSA, including ordering the arrest of financial leaders for failing to respond to inquiries.