In a recent editorial in one of the widely read newspaper platforms in Nigeria, 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 analysis of the editorial, critically examining the concerns raised while juxtaposing them against verifiable facts regarding 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.
Before 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.
The primary goal of the TSA 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 are linked to procedural bottlenecks within 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 the foundation upon which more transparent public finance now rests.
There is also a claim that the TSA stifles the autonomy of revenue-generating agencies. However, this interpretation does not align with the policy’s actual structure.
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 rightfully restricts 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.
One major claim in the editorial is that the TSA, despite its purpose, has been ineffective in addressing corruption and improving government efficiency. However, this assertion ignores the measurable progress that the TSA has made in curbing financial leakages and improving accountability.
Since the TSA’s implementation, over 17,000 unnecessary government accounts were closed, and more than ₦3 trillion in government funds were recovered. These funds were previously spread across fragmented MDAs accounts, which were difficult to track and prone to misuse.
Furthermore, monthly savings of over ₦24 billion in bank charges were achieved, and interest on “ways and means” borrowing was significantly reduced. When aggregated, this translates to over ₦288 billion saved annually.
These funds can be redirected to critical sectors like healthcare, infrastructure, and education, reinforcing the TSA’s role in curbing waste, preventing corruption, and ensuring responsible fiscal management.
Beyond savings, the TSA has significantly improved 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 has 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.
While the editorial raises concerns about the sustainability of the TSA amid Nigeria’s economic challenges, it is important to recognise the complexities of the nation’s financial landscape. Despite these challenges, the TSA has been instrumental in stabilising Nigeria’s economy during difficult periods, notably 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 more structured approach to crisis management. The TSA’s contribution in that period may not have been headline-grabbing, but it was pivotal in keeping the financial system from further deterioration.
An equally important but often underemphasised aspect of the TSA is its role in advancing indigenous technology.
The TSA operates through technical service providers, including Remita, a payment gateway initially developed by SystemSpecs as a product.
Over time, Remita has evolved into a standalone entity (Remita Payment Services Limited) continuing to power the TSA’s financial operations. The adoption of this homegrown solution, selected through a rigorous process, marked a milestone in Nigeria’s technological self-sufficiency.
Supporting the TSA is not just about fiscal discipline; it also strengthens indigenous innovation, creates jobs, and fosters a local tech ecosystem capable of addressing national challenges
Internationally, the TSA has received recognition from development partners and financial institutions. The World Bank has praised it as a major milestone in the promotion of transparency and fiscal discipline.
It has also been cited as a model for public financial management reforms in other African countries. In a global economic environment where donor confidence and international collaboration depend on demonstrable fiscal responsibility, the TSA enhances Nigeria’s credibility and positions it as a reform-minded nation.
Strengthening Reform Commitment
None of this is to say the TSA is without implementation challenges. Like all major reforms, its success depends on continuous evaluation, stakeholder buy-in, and policy refinement. What is needed now is not a reversal, but a renewed commitment to optimising the policy’s outcomes.
This includes reconciling the operational interface between the Central Bank and the Remita platform, expanding digital infrastructure to handle increasing transaction volumes, and ensuring that all MDAs are equipped with the knowledge and tools required to operate within the TSA framework effectively.
The federal government should consider instituting routine performance reviews of the TSA, focusing on identifying bottlenecks, improving user experience, and strengthening compliance. Agencies that flout the TSA directives should face appropriate consequences, as selective enforcement weakens the reform and opens the door to regression. On the other hand, those that consistently demonstrate compliance and efficiency can be rewarded with operational incentives or performance-based funding.
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 represent a reversal of progress and a message that the country lacks the institutional fortitude to maintain 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 long-term national interest.
The policy has been instrumental in saving funds, enhancing accountability, empowering local technology, and providing the transparency needed 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 a dismantling of the system, but a sincere effort to make it better.
The presidency should take the lead by convening a roundtable of relevant stakeholders: policymakers, financial experts, implementing partners, and technology providers, to evaluate the TSA’s performance, identify areas for refinement, and chart a forward-looking path that preserves its benefits while addressing emerging challenges.
*Samuel Uwagwu is a Fintech analyst based in Lagos, Nigeria.
