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Senate Probes TSA Implementation

  • Suspends remittances to Remita remita saraki ekweremadu

The Treasury Single Account (TSA) policy implementation of the Federal Government has come under probe today as senators threw jab at it and queried why Remita would deduct N25 billion representing 1% of 2.5 trillion naira mopped-up in September, 2015 alone.

Standing in the name of Senator Dino Melaye, the senate is “aware that in pursuance of this Treasury Single Account, the Federal Government on 15th September directed all its MDA’s to close their various accounts with commercial banks and pay all revenues into its account with the CBN under the policy of Treasury Single Account (TSA);

Aware also that by the policy directive all revenue generating agencies of the federal government such as the Nigerian Customs Service, the Federal Inland Revenue Service, Nigerian National Petroleum Corporation, Bureau of Public Enterprises, etc are enjoined to pay all revenues collected for and on behalf of the federal government into the Consolidated Revenue Fund straight away;

Observes that in the course of the operations of the Treasury Single Account, the federal government on the 15th of September 2015 mopped up the sum of 2.5 trillion Naira through its E-collection agent called REMITA who charges 1% of all monies passing through it, the implication of which 1% of the 2.5 trillion mopped up on the 15th September, 2015 alone amounted to 25 billion Naira Largesse to REMITA for doing nothing;

Observes that the appointment of REMITA as an agent for the operations of the Treasury Single Account negates and contravenes section 162(1) of the 1999 constitution which provides that- “The Federation shall maintain a Special Account to be called “The Federation Account” into which all revenue collected by the government of the Federation, except the proceeds from the personal income tax of personnel of the Armed Forces of the Federation, the Nigeria Police Force, the Ministry or Department of government charged with Foreign Affairs and the residents of the FCT Abuja and going by this provision, all revenues accruing to the Federal Government of Nigeria ought to be paid directly to the said Fund or Account as the case may be;

Aware that by the above provisions, the CBN is the Sole Institution that is mandated to collect and disburse moneys on behalf of the Federal Government and where it has no branch, it may appoint another bank as agent to perform the function of collections and disbursement of revenue on behalf of the Government of the Federation, using REMITA who is not a registered Bank completely offends the CBN Act”.

In its resolution, the senate mandated the committees of finance, Banking and other Financial institution and public account to carry out a holistic investigation on the matter and report back in two (2) weeks while directing the Central Bank of Nigeria, Ministry of Finance and other approving authorities to suspend further remittances to Remita pending the outcome of the investigation.

Senator Kabiru Gaya laid the report of the Ad-hoc Committee on local and Foreign Debts Approval of Lagos State Development Policy Operation II (DPO II) loan of USD 200 million but consideration differed to next legislative day.

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The Senate | Federal Republic of Nigeria | National Assembly Complex | Three Arms Zone, PMB 141, Abuja | Nigeria