Malam Nasir El-Rufai has launched the Kaduna State TSA Operations Manual. The presentation of the manual, which records the experience of Kaduna State in implementing the Treasury Single Account, took place in Lagos during the International Monetary Fund’s West Africa workshop on TSA implementation.
Speaking at the event, Malam El-Rufai, expressed gratitude to the IMF team for considering the implementation of TSA in Kaduna State a model. He acknowledged the efforts of the Kaduna State team and the support of partners like the IMF in the TSA effort. The governor said that Kaduna State is delighted to share information on how the state executed the TSA within six weeks last year.
The TSA is regarded as a policy tool that helps reduce waste and leakages. Kaduna State announced early in August 2015 its intention to adopt TSA by 1 September 2015. It requested its bankers to close all government accounts and to remit the balances to the state’s TSA at the Central Bank. Having conducted a prior census of government accounts, Kaduna was given a baseline figure of 324 accounts belonging to ministries, departments and agencies. When the banks submitted evidence of closure of government accounts, the government was surprised that there were actually 470 accounts from which N24.5bn were remitted to the state’s TSA.
Explaining the motivation for the TSA, he disclosed that the reality of sliding revenues compelled close attention to plug leakage and wastage. The Treasury Single Account is a revenue management framework which consolidates government accounts into one major account. It enhances the liquidity position of the government and makes it easier to trace and audit accounts.
The TSA Manual records the processes that laid the basis for successful execution of TSA in Kaduna State, the challenges that were encountered and the institutional steps taken to leverage on the benefits of the TSA. The manual highlights the collaborations with multilateral partners and the technical assistance that Kaduna State received to actualise the policy.
The TSA Manual also records what impeded the FG’s own TSA effort that was initiated in 2012, and what lessons Kaduna State picked from that.