The Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, has revealed that Nigeria save averagely about N45 billion every month in interest payments by Ministries, Departs, and Agencies from the Treasury Single Account (TSA). At the signing of a Memorandum of Understanding (MOU) on the TSA with the Government of Gambia yesterday, in Abuja, the minister said it is now easy to determine aggregate cash balance, which is critical for managing public finances at a time of acute fiscal constraints. “Implementation of TSA has benefited Nigeria immensely. Among other verifiable benefits, we can now easily determine our aggregate cash balance which is critical for managing public finances at a time of acute fiscal constraints. In addition, we are saving an average of N45 billion monthly in interest payments.
“On the monetary policy side, we have better control over the money supply and therefore able rein in inflation and undue pressure on the Naira. “Our foreign reserve position has also recorded appreciable improvement through the consolidation of Federal Government foreign currency earnings under the TSA,” she said.
Ahmed said Nigeria was delighted to support Gambia in its bid to implement TSA and other PFM reforms. She added that she would 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.
“Do not embark on this journey if you are not confident that you have the buy-in of your topmost political leadership. “It is the most potent antidote against the several headwinds that will try to undermine and derail your reform effort. “Next in line is to assemble the right team of competent and committed reformers with in-depth knowledge of PFM.
“There are more factors at play. You need, for instance, the financial resources and an enabling environment to drive reforms.
“The importance of synergy between the fiscal and monetary authorities cannot be over-emphasized. Equally important is the co-operation of other stakeholders: the parliament; the ministries, departments, and agencies of government; the banks, and service providers.
“Above all, the general public, on whose behalf government exists and manages public funds. They must be convinced that TSA and other reforms are being implemented in their interest and for the good of the country. As is the case in Nigeria, when you have their support; they will take it upon themselves to be the rampart against forces of resistance and any attempt at derailing the reforms.”