The Federal Government of Nigeria has declared that all withdrawals by Ministries, Departments and Agencies (MDAs) from the Treasury Single Account (TSA) will be suspended by the end of March, 2016.
This disclosure was made known by the Minister of Finance, Mrs. Kemi Adeosun, on Tuesday, February 9, while defending the budget of the ministry before the Senate Committee on Finance led by Senator John Eno.
Replying questions thrown at her by the committee on irregular balances in TSA account, she said money was going in and out of the account on a daily basis.
She also affirmed that the ministry was working hard to determine the figures in the account which represented liabilities with the intention to know what will be brought forward to fund the 2016 budget.
She said: “The TSA is the bank account of the MDAs. We are starting the process of drawing a line and March is the deadline.
“In March, we will be able to make sure that we say to those agencies – of your balance in TSA – how much is capital? How much is accumulated surplus of the past? How much is tied to liabilities?
“That process we have started and we are engaging with the agencies and from that, we will be able to identify how much can now be used to fund the budget.
“But the TSA balances change on a daily basis because of revenues and monies being paid out. So, we are drawing a line.
“When the budget year closes, then we will do a closing reconciliation; freeze any monies that are no longer available for them to spend and count as part of our funding for 2016.”
Mrs. Adeosun furthermore said that despite the changes to the TSA account, the balance still stood at about N2.2 trillion adding that before the end of the financial year by March 2016, the ministry would have determined what amount of the money is actually a liability and what amount is available.