Nigeria’s TSA: A Case for Preservation Amidst Challenges and Successes

Omolabake Fasogbon

Few public financial reforms in Nigeria have had as much impact as the Treasury Single Account (TSA). Conceived as a mechanism to unify Federal Government’s cash management and enhance accountability, the TSA marked a turning point in efforts to ensure fiscal transparency, curb corruption and improve the use of public resources.

Before its implementation, Nigeria’s financial system was fragmented. Thousands of bank accounts were operated by Ministries, Departments and Agencies (MDAs) across commercial banks. This opacity enabled leakages and made it difficult to assess the government’s true cash position. The TSA addressed this dysfunction by consolidating government revenues into a single account at the Central Bank of Nigeria (CBN), aligning with the constitutional mandate that all revenues be paid into the Consolidated Revenue Fund.

Though long discussed, the TSA journey gained momentum with Presidential Order No. 55 issued in 2011 under the Goodluck Jonathan administration. A 2012 pilot involving 217 MDAs reportedly saved Nigeria ₦500 billion in wasteful spending. Full implementation came in 2015 when the Muhammadu Buhari administration directed all MDAs to transfer balances from commercial banks to the CBN. By year-end, over 600 of the 900+ MDAs had complied, marking a significant reform milestone.

Technology as a Catalyst for Fiscal Transformation

At the core of this reform is Remita, the indigenous technology that powers TSA operations. Developed by SystemSpecs, now known as Remita Payment Services Limited, Remita integrates with all 24 commercial banks, more than 400 microfinance banks, and other financial service providers. It facilitates collections and payments for MDAs, granting the government real-time visibility into its finances. This not only drives transparency but enhances operational efficiency.

It is important to distinguish between the TSA as a policy framework and Remita as the software enabler. The TSA outlines how funds should be managed, while Remita executes those transactions through a secure, centralised infrastructure. This nuance underscores the importance of both policy and technology in achieving reform goals.

The results have been impressive. TSA helped recover over ₦3 trillion from 17,000 previously unmonitored MDA accounts. By July 2019, approximately $28 billion had been collected through the system from 1,674 MDAs. Fiscal discipline improved significantly. The Ministry of Finance gained clearer control over budget allocations, reducing arbitrary spending and better aligning public expenditure with national priorities.

Cost savings were also substantial. The government eliminated over N24 billion in monthly bank charges by reducing the number of accounts. Additionally, interest on “ways and means” borrowing from the CBN declined by over $125 million monthly. Agencies such as the Joint Admissions and Matriculation Board (JAMB), once remitting negligible revenue, began posting record remittances.

More than just savings, the TSA ushered in automation and real-time tracking, turning transparency from an aspiration into a standard. Every inflow and outflow could now be traced, making auditing faster and more effective. The TSA became the most robust audit trail reform in Nigeria’s public finance history, arming watchdogs with tools to monitor expenditure more accurately.

The TSA also received international praise, with the World Bank recognising it as a significant step in promoting transparency and fiscal discipline. By consolidating revenues into a single account, the reform has curtailed corruption, strengthened financial oversight, and set a model for other African nations seeking public finance reforms. The TSA’s impact on streamlining revenue collection and reducing leakages has enhanced governance efficiency, reinforcing Nigeria’s leadership in public sector innovation.

Economic Stability Via the TSA

The economic ripple effects were significant. By offering a clear view of government liquidity, the TSA improved debt management, optimised cash deployment, and bolstered the CBN’s ability to conduct monetary policy. During the 2016 recession, it played a quiet but critical role in stabilising the fiscal system. By reducing the need for emergency borrowing, it gave the government breathing space for strategic financial planning.

Yet, the TSA’s journey has not been without challenges. While the framework is largely sound, implementation has faced hurdles. Many MDAs lack the technical capacity to fully engage with the system, leading to delays in fund access and reconciliation. These issues often stem not from the Remita platform but from gaps in training, coordination, and, at times, institutional resistance.

As Nigeria marks a decade of the TSA, discussions on its future have re-emerged. Despite isolated criticisms, there is widespread agreement among fiscal experts and development institutions that the TSA remains one of Nigeria’s most impactful reforms. It has strengthened fiscal governance, increased transparency, and improved public resource management.

However, sustaining this progress requires more than praise. It calls for active stewardship and fairness, particularly towards those who made it possible. Remita, the indigenous technology backbone of the TSA, represents a landmark in Nigerian innovation. Yet, despite its pivotal role, its contribution has not always received due institutional respect.

Remita’s journey has been marred by administrative delays in compensation and avoidable disputes, which send troubling signals. Such treatment risks eroding trust in Nigeria’s commitment to homegrown innovation. It suggests that even when Nigerian entrepreneurs deliver transformative results, they may still face bureaucratic indifference.

This is not merely a governance issue. It touches on national development strategy. In a world where countries are competing to unlock digital potential, Nigeria cannot afford to discourage the very talent that can build solutions at scale. To preserve the TSA is also to preserve the ecosystem that sustains it, including indigenous innovators whose patriotism and excellence have been proven.

True reform demands consistency, not only in implementation but also in how contributions are valued. If Nigeria hopes to inspire the next generation of technologists and reformers, it must demonstrate that innovation is recognised and rewarded.

The task is clear. Preserve what is working, improve what is lacking, and elevate those who contribute meaningfully to national progress. The TSA has reinforced Nigeria’s financial architecture and improved revenue mobilisation while reducing inefficiencies. But its long-term success depends on how its legacy is managed and how the innovators behind it are treated.

To build on the successes of the TSA, the Federal Government should prioritise conducting a thorough reconciliation with Remita to evaluate the full scope of its impact. By assessing the gains made since the implementation, the government can identify areas for improvement and develop new strategies to enhance the system’s efficiency and reach. This ongoing evaluation will help address any existing challenges, optimise operations, and ensure that the TSA continues to serve as a robust tool for financial transparency and accountability.

Preserving the TSA must move beyond rhetoric. It requires institutional commitment, continuous technology enhancement, policy stability, and fairness in public-private partnerships. TSA is not just a financial policy. It is a testament to what Nigeria can achieve when vision is matched with effective execution. In an era of fiscal challenges and growing public demand for good governance, Nigeria must protect its strongest reforms. TSA is a national asset. Defending it is essential for fiscal integrity, public confidence and national credibility.