As part of a “Treasury Single Account” (TSA) framework, Kaduna State has announced that it is closing its government accounts in outside banks in order to maintain its funds in a single account in the Central Bank of Nigeria (CBN) by September 1st.
As part of a Treasury Single Account (TSA) framework, Kaduna State has announced that it is closing government accounts in outside banks in order to maintain its funds in a single account in the Central Bank of Nigeria (CBN) by September 1st.
A statement from spokesman Samuel Aruwan said that Kaduna State Governor Malam Nasir El-Rufai told officials of banks currently hosting the government’s accounts to remit the balances to the new single account at the CBN. At a later date, sub-accounts of the TSA will again be opened within the CBN and commercial banks.
Governments with fragmented systems for handling money use the TSA framework to minimize the cost of borrowing cash. With a complicated system of multiple bank accounts, governments often withdraw costly bank loans despite having funds available. A TSA simplifies government accounting to minimize unnecessary borrowing.
The statement noted that certain revenue-holding accounts will “be excluded from this directive.”