Uyo
The Akwa Ibom State Governor, is receiving much accolades and endorsement by the people of the state and beyond, for the introduction and implementation of the Treasury Single Account (TSA).
This report is coming on the heels of a move, typical of the Governor, to always try to get everyone on same page, regarding developments in the state, when he, last Monday, summoned a meeting with all government revenue generating agencies and key stakeholders in the state, in Uyo, where the policy was examined, analyzed and given a nod to set rolling.
According to findings by Pioneer Newspaper team who spoke to a wide variety of the public, including the academic community, professionals, artisans and politicians; everyone is optimistic that the policy will avail the Governor and the government an opportunity to accelerate the provision and delivery of more and prompt infrastructure, for the betterment of the people.
The Monday meeting, where impressive presentations by the state’s commissioners of finance, and that of Digital Economy, alongside the Accountant General of the state, Pastor Uwem Andrew Essien, left everyone without doubt, as to the need and significance of the introduced policy.
Other stakeholders in attendance at the meeting who aired their consent to, and adoption of, the TSA Policy, were the state chapter of the Association of Local Government of Nigeria (ALGON), the State House of Assembly, the Judiciary, amongst others.
Speaking at the meeting, the commissioner for Finance, Mr. Emem Almond Bob, described the TSA initiative as a major public financial management reform under the present administration.
Bob commended the governor for clearing inherited commercial bank debts of N39.831 billion, paying almost N80 billion gratuity arrears, out of the inherited backlog of N111 billion since 2012, maintaining over 80 per cent budget performance, ensuring prompt payments of salary, executing massive infrastructure projects and settling contractors’ obligations.
He said the engagement was designed to address stakeholders’ concerns and agree on modalities for the remittance of operational funds to revenue-generating MDAs and institutions.
There was a detailed presentation on the State’s remittance platform, (AkwaRemit) by the commissioner for Science and Digital Economy, Dr. Frank Ekpenyong, outlining operational guidelines and compliance expectations under the TSA framework.
The Deputy Speaker of the Akwa Ibom State House of Assembly, Mr Kufreabasi Edidem, applauded Eno for institutionalizing a sustainable digital revenue system that would endure beyond his tenure, noting that the TSA was long overdue and would curb financial irregularities while strengthening audit processes.
Chairman of the Association of Local Governments of Nigeria (ALGON) in the State, Dr. Uwemedimo Udo, represented by the chairman of Ika Local Government council, Mr Utibe Nwoko, Esq, assured that local governments were ready to align fully with the new system.
The State Accountant General, Pastor Uwem Andrew-Essien, expressed satisfaction with the innovation in financial management and assured stakeholders that anticipated bottlenecks had been resolved to guarantee a seamless transition.
Speaking separately at the event, the chairman, House committee on Finance and Appropriation, Dr. Itorobong Etim, described the TSA as evidence of the governor’s commitment not only to his administration but to the long-term financial stability of the State.
The high point at the meeting was when the Governor, consequently, directed the Accountant General to close all accounts held by MDA’s, while pardoning the MDA’s for funds collected and withdrawn from their accounts up till the time of the meeting.
The Governor who took time to explain the Treasury Single Accounting system, said the implementation of the Treasury Single Account (TSA) in the State will boost revenue growth and serve as a strategic tool to drive holistic development, while also enhancing transparency and strengthening accountability across Ministries, Departments and Agencies (MDAs).
He said that the TSA will help shore up internally generated revenue, eliminate leakages and provide empirical data to support planning and other development initiatives.
He frowned at the practice where MDAs expend revenues they generate while still receiving monthly imprest from government, warning that henceforth any MDA that does that will be sanctioned.
“Our revenue collection drive and system has not been very effective. We have invested a lot of time reviewing our systems since coming into office, and these are the efforts people do not see compared to the physical structures.”
He explained that under the TSA regime, collection costs and operational funds will be processed through an automated system to ensure standardization and eliminate abuse.
The Governor, did not fail to sound it out that any deviation from the operation of the TSA guidelines, by the MDA’s, shall incure the wrath of the Economic and Financial Crimes Commission (EFCC).
He went on to highlight the numerous benefits inherent in the operation of a single treasury account, which includes the potential to be able to negotiate favourable interest rates with the bank through which all the funds collected by all revenue generating agencies in the state is routed to the government’s AkwaRemit payment platform, which is the only designated and authorized payment platform for collection of monies by all MDA’s and other revenue generating points in the state.
This interest rate benefit of the TSA is premised on the volume of deposit that will be held by the bank, on behalf of the government, and which will serve as the government’s bargaining strength, and can also be used to secure favourable interest rates for the MDA’s themselves and other government needs, where need be.
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