[Nigeria Business Forum] How will the Single Treasury System (TSA) affect the banking system in Nigeria?
On a regular basis we consult African professionals about their views on business. Today's question is: How will the Single Treasury System (TSA) affect the banking system in Nigeria?
The TSA policy has been around for more than 5 years now but was again pressured to a halt by the banking community when it was revisited in 2014. Obviously, the banks have gone off course depending largely on cheap funds and playing safe with bonds and other money market instruments.
My initial thoughts are that this is a good initiative by the Government of Nigeria. There is nothing more frustrating than accountability and lack thereof when it comes to finance and auditing.
Single Treasury Account (TSA) is a public accounting system under which all Government revenue, receipts and income are collected into one single account. The TSA is maintained by the Central Bank of Nigeria.