Home BUSINESS BANKING & FINANCE Federal Government Approves New Tariff Regime For TSA

Federal Government Approves New Tariff Regime For TSA

Accountant-General-of-the-Federation-AGF, Ahmed-Idris

The federal government has indicated that, from November 1 2018, the service charge on all payment to its ministries, departments and agencies [MDAs] would be borne by the payer.

In line with the global best practices and amidst dwindling revenues,

The federal government has approved a new Treasury Single Account (TSA) tariff model which mandates that the service charge on payment to its ministries, departments and agencies (MDAs) from tomorrow, November 1.

This fact came out at the recently concluded one-day stakeholder sensitization exercise on TSA e-Collection Charges held in Abuja yesterday, Tuesday, organized by the Office of the Accountant General of the Federation.

Under the new model, according to information emanating from the office the Accountant General of the Federation (AGF), Ahmed Idris, all funds collection into the TSA would require payers to bear the transaction cost.

The new model would replace the previous one in which the federal government bore the charges on all transactions to the service providers on behalf of payers.

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In the previous tariff regime, the federal government owed the technology service providers and the participating deposit money banks up to two years in service charge.

In 2012, the pilot TSA scheme commenced using a unified structure of accounting for the 217 MDAs for accountability and transparency in public fund management.

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

At commencement, all players, including all commercial banks, SystemSpecs and the Central Bank of Nigeria [CBN], agreed that a fee of 1% of funds collected is payable.

Editorial staff
Editorial Staff at Greenbarge Reporters is member of a team of journalists led by Editor-in-Chief, Yusuf Ozi Usman.

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