- Alex Otti, Abia State Governor, says the new system will help fight fraud.
- Also streamline tax system.
- Urges the people to accept and adopt the new system.
Alex Otti, the governor of abia state has confirmed in a statement on his twitter handle that the state will now transition to the Treasury Single Account (TSA) which will be in effect from September 2023,
In his firm word, he says this new adoption will help fight fraud across all level in the state while helping to build a seamless tax payment system and organizing the state’s finances.
What is The Treasury Single Account (TSA)?
Treasury Single Account (TSA) is a financial management system that consolidates all government cash resources into a single account or a set of linked accounts. This allows for centralized control and monitoring of government funds, which can lead to improved efficiency, transparency, and accountability.
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TSAs are used in many countries around the world, including Nigeria, India, and the United States. In Nigeria, the TSA was implemented in 2012 and has since helped to improve government cash management and reduce corruption.
The benefits of the TSA
Improved cash management
TSA can help governments to better manage their cash flow by ensuring that all government funds are available in a single account. This can help to avoid the problem of government agencies running out of cash, which can lead to delays in payments and other problems.
Increased transparency
TSA can help to increase transparency in government finances by making it easier to track government funds. This can help to deter corruption and ensure that government funds are used for their intended purposes.
Enhanced accountability
TSA can help to improve accountability by making it easier to track government spending. This can help to ensure that government funds are used effectively and efficiently.
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Alex Otti’s Statement
In an address on his twitter handle, the governor of abia state said: “By September 1, 2023, Abia State will transition to a Treasury Single Account (TSA) system”.
In the statement which was titled “Transition to a Treasury Single Account”, he went on to say “This move will centralize all state revenue and payments, enhancing transparency and efficiency”.
“During a recent town-hall meeting with the state’s transport unions and market leaders, I reiterated the benefits of our new digital tax system. This system will fight fraud, streamline tax payments, empower our citizens, generate employment and attract investors. I urge all stakeholders to embrace this shift, knowing it is in the best interest of Abia State and its people,” he said.
Conclusion
There are some challenges associated with implementing a TSA, such as the need to change existing systems and processes. However, the benefits of a TSA generally outweigh the challenges, and TSAs have been shown to be an effective way to improve government financial management.
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Overall, the TSA has been a positive development for Nigeria’s public finances. It has helped to improve transparency, accountability, and efficiency, it has contributed to the government’s efforts to reduce corruption and will do so for abia state.
