The Federal Government has approved a new Treasury Single Account (TSA) tariff model which transfers the payment of the one percent service charge into the TSA to payers.
The fiscal measure was one of the major highlights of the newly approved TSA tariff model unveiled at a one-day stakeholders’ sensitisation exercise on TSA e-Collection charges held on Wednesday in Abuja.
Specifically, the tariff model, which was developed by the Office of the Accountant General of the Federation (OAGF), requires that service charge on payments to ministries, departments and agencies (MDAs) from Thursday, November 01, 2018 will be paid by the payer.
The directive on the latest TSA tariff model from the OAGF indicated also that funds collection into the TSA would require payers to bear the transaction cost as against the previous fiscal regime in which the merchant, that is, the Federal Government, used to bear the charges on all transactions.
For instance, under the previous tariff regime, it was reliably gathered that the Federal Government owed the technology service providers, SystemSpecs, and the participating deposit money banks (DMBs) up to two years arrears of service charge.
At the take off of the TSA implementation all stakeholders, including the DMBs, the technology service provider and the Central Bank of Nigeria (CBN), agreed that a fee of 1% of funds collected would be payable to SystemSpecs, and the DMBs payment outlets.
The TSA initiative whose implementation started in September 2015, had led to the closure of over 20,000 bank accounts so far just as over N8 trillion had been moved from the DMBs’ vaults to the CBN.
The latest data on enrollees of the tariff regime indicated that a total of 1,674 government’s Ministries, Departments and Agencies (MDAs) had been moved onto the TSA platform.
