The House of Representatives Public Accounts Committee has taken a decisive stance, announcing its intention to sanction Ministries, Departments, and Agencies (MDAs) of the Nigerian government for alleged violations of the Treasury Single Account (TSA). Committee Chairman, Bamidele Salam, conveyed this resolution during a hearing held in Abuja on Wednesday, emphasizing the committee’s commitment to fostering transparency and accountability within government financial operations.
During the proceedings, the committee summoned key figures, including 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. The slated appearance date for these officials is February 20, and the investigation primarily centers around reported leakages and the non-remittance of TSA revenue generated through Remita, a payment processing platform.
Remita Payment Service Ltd (RPSL) Managing Director, Mr. Deremi Atanda, clarified the role of Remita, stating that it does not manage government revenue but serves as a software and payment gateway. He debunked claims of a one percent fee for processing TSA, citing a fee of N150 with VAT as per Central Bank of Nigeria circulars from November 2018 and December 2020. Atanda also highlighted that Remita provides free value-added services to the Federal Government despite incurring foreign hosting costs.
However, the committee expressed concerns about the lack of documents, particularly from the Central Bank of Nigeria, contrasting with Remita’s provision of a signed contract. Salam emphasized the necessity for the physical appearance of the Minister of Finance, CBN Governor, and Accountant General of the Federation before the committee on February 20, 2024.
The Treasury Single Account (TSA) was approved in August 2015 by former President Muhammadu Buhari, with the aim of enhancing transparency in government revenue collection. The initiative aimed to facilitate compliance with constitutional provisions while consolidating all receipts due to the Federal Government and its agencies into a single account.
The House of Representatives Committee on Public Petition had previously ordered the arrest of CBN Governor Olayemi Cardoso, Accountant General of the Federation Oluwatoyin Madein, and others in August 2015 for their failure to appear before the committee for questioning on their functions.
In February 2024, the CBN stated that its efforts were yielding positive results in easing the economic situation in the country. The governor of the apex bank, Olayemi Cardoso, conveyed this information during an appearance alongside the economic team before the Senate Committee on Finance, Banking, Insurance, and Financial Institutions.
Former President Buhari had earlier highlighted initiatives like e-Naira, TSA, Bank Verification Number, and National Identification Number as measures put in place to drive the digital economy and combat corruption in the country, providing investors with confidence. However, concerns have arisen since the introduction of the TSA, with some ministries and government agencies reportedly being exempted.
In 2017, the House of Representatives raised questions over a “purported” presidential approval exempting certain Nigerian National Petroleum Corporation accounts from the TSA. A few days before leaving office in May 2023, Buhari approved the partial exclusion of the Ministry of Finance Incorporated from the TSA, further contributing to ongoing discussions about the effectiveness and implementation of the initiative.