New TSA Tariff Regime Begins Today

Effective today, November 1, the Federal Government will begin a new service charge through the Treasury Single Account (TSA) on all payments to its ministries, departments and agencies (MDAs).

Office of the Accountant General of the Federation (OAGF), Ahmed Idris, disclosed this yesterday in Abuja, saying the charges would be borne by the payer.

The OAGF had on Tuesday in Abuja held a One-Day Stakeholders Sensitisation Exercise on TSA e-Collection Charges, noting that under the new model, all funds collection into the TSA would require payers to bear the transaction cost, which would likely be one per cent.

The novel tariff regime would replace the previous one in which the Federal Government bore the charges on all transactions to service providers on behalf of the payers.

Previously, the Federal Government owed the technology service providers and the participating deposit money banks up to two years in service charges.

Guardian writes that in 2012, the pilot TSA scheme commenced using a unified structure of accounting for 217 MDAs to enhance accountability and transparency in management of public funds.

In August 2015, the initiative was fully implemented, as it covered over 1000 MDAs after a presidential directive.

At commencement, all players, including commercial banks, SystemSpecs and the Central Bank of Nigeria (CBN) agreed on the payment of one per cent fee on funds collected.

,

Leave a Reply

Your email address will not be published. Required fields are marked *