Nigeria saves N45bn monthly in interest payments on TSA- Minister
The implementation of treasury single account (TSA) in Nigeria has saved the country an average of N45 billion monthly in interest payments, according to Mrs. Zainab Ahmed, Minister of Finance, Budget and National Planning.
On the occasion of the signing of memorandum of understanding (MoU) on TSA with the Republic of The Gambia in Abuja, she said that among other verifiable benefits, Nigeria could now easily determine its aggregate cash balance which is critical for managing public finances at a time of acute fiscal constraints.
“On the monetary policy side, we have better control over money supply and therefore able to rein in inflation and undue pressure on the naira. Our foreign reserve position has also recorded appreciable improvement through the consolidation of the Federal Government foreign currency earnings under the TSA,” she stated.
The minister recalled the last visit by The Gambia in May, 2019 when, based on the recommendation of the International Monetary Fund (IMF), it visited Nigeria for a week-long study tour of TSA implementation.
According to her, “Following the successful conclusion of the tour, The Gambia requested for technical cooperation with Nigeria to support its own transition to TSA. To that aim, representatives of both countries worked on a MoU detailing the terms and scope of the cooperation”.
Highlighting the essence of the understanding, she said: “In a nutshell, the cooperation seeks to avail the Ministry of Finance and Economic Affairs of The Gambia of the vast knowledge, experience and technical expertise that Nigeria has gained in the past 15 years of implementing TSA in particular and other public financial management (PFM) reforms, in general. By so doing, The Gambia is properly guided as it implements its own TSA. The cooperation will enable The Gambia to leverage on the experience of Nigeria to build on our strengths while avoiding our mistakes.