The federal government has pulled the Federal Capital Territory Administration (FCTA) out of the Treasury Single Account (TSA), according to the Minister of the Federal Capital Territory (FCT), Nyesom Wike.
Wike said on Friday the approval was given by President Bola Tinubu to allow the FCT to use the territory’s Internally Generated Revenue (IGR) for the development of the Nigerian capital.
During a press conference, Wike also disclosed that President Tinubu has approved the establishment of the FCT Civil Service Commission, which will facilitate the career progression of FCT Administration staff.
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The Treasury Single Account is a unified system of government bank accounts designed to provide a consolidated overview of the government’s cash inflows. Initially proposed by the federal government of Nigeria in 2012 during the Jonathan Administration, it was subsequently fully implemented during the Buhari Administration.
The primary objective of the TSA is to centralize all inflows from various government agencies into a single account held at the Central Bank of Nigeria. This centralized approach aims to combat corruption by addressing irregularities stemming from the existence of multiple government accounts, while also enabling enhanced tracking of all government revenues and ensuring greater financial accountability.
The International Monetary Fund (IMF) advocated for the establishment of the TSA, recognizing its potential to yield several benefits for the government. These advantages include the reduction of borrowing costs, expanded access to credit, and enhancements to the government’s fiscal policy.
Additionally, the IMF emphasized the importance of implementing a sound legal framework to underpin the TSA, ensuring its resilience and stability in the long run.
However, critics have described Tinubu’s decision to pull the FCTA from the TSA as illegal. They said the power lies with the House of Representatives which is the legislative body responsible for approving all FCTA financial budgets and revenues.
“BAT (Bola Ahmed Tinubu) is exhibiting pure disdain for our laws and the Constitution. Yesterday, against the clear provisions of Section 2 of the EFCC Act, he appointed one of his lackeys, who is clearly disqualified by the Section above, as the EFCC Chairman. Today, he has gone round Sections 80 and 162 of the Constitution to remove the FCT from the TSA,” human rights lawyer Abdul Mahmud wrote.
“The FCT has no powers under the law to spend what’s not appropriated for it by the House of Representatives. This ‘Pyongyangesque’ disdain of BAT for the Constitution certainly spells doom for the rule of law.”