Monday, March 07, 2016 08:15 AM /SEC
The Treasury Single Account (TSA) is an initiative of the Federal Government being implemented through the office of the Accountant General of the Federation (AGF) as part of its Economic Reform Programme. It is a unified structure of Government Bank Accounts – a single Account or a set of linked Accounts for all Government transactions.
Without doubt, TSA will not only help Government unify banking arrangement but would give Government oversight on cash resources, promote efficiency, transparency, accountability, reduce overall cost of government borrowing and reduce idle cash balances of Ministries, Departments and Agencies (MDAs) funds in banks. All MDAs have a role to play in this laudable objective.
The Securities and Exchange Commission (SEC) as the Apex Regulator of the Nigerian Capital Market was established in 1979 and currently governed by the Investment and Securities Act (ISA) 2007.
In regulating the market, the Commission undertakes the following activities meant to protect investors, market operators and ensure market integrity: Registration of securities and market intermediaries to ensure that only fit and proper persons/institutions are allowed to operate in the market; Surveillance over exchanges / capital trade points / trading systems to forestall breaches of market rules as well as deter and detect unfair manipulations and practices which may cause market disruption and; Investigate alleged breaches of the laws and regulations governing the capital market and enforce sanctions where appropriate.
The SEC is supervised by the Federal Ministry of Finance and as an agency of the Federal Government is bound to comply with all directives, the TSA is one of such directives, hence the nexus between SEC and TSA.
As a responsible agency of Government, SEC, proudly and happily too is one of the first agencies to comply. The Management of SEC, under the leadership of Mounir Gwarzo ensured the verification of users and sponsored staff on workshops organized for the implementation of TSA.
The experience so far, has proven that TSA is indeed a more convenient payment platform.
However, like many other initiatives, TSA came with the usual teething problem which included adjusting to the new ways and getting the procedures right. Another notable challenge was inability of the Commission to directly invest its savings as was the practice to generate interest income to fund budget deficits.