The federal government saves an average of 45 billion naira per month from the implementation of the Single Treasury Account (TSA)
The Minister of Finance, Budget and National Planning, Ms. Zainab Ahmed, revealed this by signing a Memorandum of Understanding (MOU) on the TSA with the Gambian Government, in Abuja, yesterday.
He said that the 45 billion naira were being saved from what should have been interest payments by ministries, departments and agencies.
His words: “The implementation of the TSA has greatly benefited Nigeria. Among other verifiable benefits, we can now easily determine our aggregate cash balance, which is critical to managing public finances at a time of severe fiscal constraints. In addition, we are saving an average of Naira 45 billion per month in interest payments.
“On the monetary policy side, we have better control over the money supply and therefore we can control inflation and undue pressure on the Naira.
“Our foreign reserve position has also seen an appreciable improvement through the consolidation of the Federal Government’s foreign currency earnings under the CUT.”
Cooperation between Nigeria and the Gambia, the minister said, would benefit the Gambian Ministry of Finance and Economic Affairs from the vast knowledge, experience and technical expertise that Nigeria has acquired in the last 15 years of implementation of the TSA in particular. and other reforms of Public Financial Management (PFM), in general.
According to her, “In doing so, The Gambia is properly guided in implementing its own TSA. The cooperation will allow The Gambia to draw on Nigeria’s experience to build on our strengths and avoid our mistakes. “
He advised the Gambian government to demonstrate adequate political will in implementing the TSA.
The minister warned that, as with all governance reforms, the TSA would need strong political support to tackle the heavy lifting that the GFP reforms entail.
He says: “Do not embark on this journey if you are not sure you have the support of your highest political leadership.
“It is the most potent antidote to the various headwinds that will attempt to undermine and derail your reform effort.
“Next on the list is putting together the right team of competent and committed reformers with an in-depth understanding of PFM. On that team will rest the responsibility of translating the policy into action and, in doing so, ensuring that the expectations of the TSA are met.
“There are more factors at play. It needs, for example, the financial resources and an enabling environment to push through reforms.
“The importance of synergy between fiscal and monetary authorities cannot be overstated. Equally important is the cooperation of other stakeholders: Parliament; government ministries, departments and agencies; banks and service providers.
“Above all, the general public, in whose name the government exists and manages public funds. They must be convinced that the TSA and other reforms are being implemented in their interest and for the good of the country. As is the case in Nigeria, when it has your support; They will be in charge of being the wall against the resistance forces and any attempt to derail the reforms. “
In her comments, Ms. Ada Gaye, Permanent Secretary of the Gambia Ministry of Finance, on behalf of the delegation, expressed her country’s determination to implement the TSA.
She said, “The Gambia wants to efficiently manage its funds; the fragmentation of accounting systems in The Gambia is enormous. Therefore, it is noteworthy that The Gambia adopts the TSA.
“Nigeria is the older brother, while Gambia is the little brother. We are happy to cement this brotherly love ”.
Also speaking, the Gambian High Commissioner in Nigeria, Amadou Taal, said that Nigeria was a great example within the Economic Community of West African States (ECOWAS) region.
He said: “We are trying to make reforms in our financial management. Therefore, this collaboration with Nigeria is very important to us. Therefore, the Central Bank of The Gambia will approach the Central Bank of Nigeria (CBN) to learn and gain the necessary experience. “