GUIDELINES FOR STATE TSA

For state governments in Nigeria hoping to follow federal example by opening Treasury Single Account (TSA), the Central Bank of Nigeria has come up with guidelines to make it easier and beneficial to all stakeholders.
The guidelines were released this week and the aim, says the CBN is to provide state governments with framework to support successful implementation of TSA.
In its preamble, the CBN defined TSA as " the operation of a unified structure of government bank accounts in a single account or set of linked accounts for ALL government payment and receipts"
It explained that the main objective of TSA is to bring all government funds within effective control and operational purview of Treasury to "enthrone centralised , transparent and accountable revenue management"
TSA, CBN explained, is in two model options from which state governments will have to choose. These are the TSA and associated ledger sub accounts and main TSA in a single banking institution and associated zero balance ledger sub accounts in other institutions.
Essential requirements include government agencies are not to operate any bank accounts outside the purview and oversight of treasury, consolidation of government cash resources must be comprehensive and all encompassing and banking arrangement must be unified to enable true oversight of cash flows.
Hence to successfully adopt TSA state governments must choose which of the two models they prefer given established processes and available basic technology.
They also will formally inform the CBN of the decision to operate TSA and ensure that all legal framework; treasury regulations and cash management policy were in place.
In addition each state must enter into clear contractual agreements with all parties involved in the design ; delivery and ongoing support of the scheme like the CBN itself; bank of choice; payment technology solution provider amongst others.
Each state too must have clear position on outstanding debts to banks before commencement of the TSA; establish a TSA project team headed by an official not lower than a director in civil service; and formal application for TSA account opening must be signed by any two of the following: The governor; finance commissioner and state accountant general.
Each state shall open only one TSA account and payment platform must be from the ones approved by the CBN.