Breaking: Nigeria’s Katsina State to Implement Treasury Single Account System

In a landmark move, the Katsina State Government in Nigeria has declared its intention to implement the Treasury Single Account (TSA) system, set to commence on February 15, 2024. This significant shift in policy will necessitate all Ministries, Departments, and Agencies (MDAs) to close their existing bank accounts by February 14, 2024, setting the stage for a comprehensive transition.

Paving the Way for Systematic Revenue Management

Alhaji Isiyaku Muhammad, the Executive Chairman of the Katsina State Internal Revenue Service, disclosed that Polaris Bank will play host to the TSA. Simultaneously, other associated accounts will move under the management of diverse banks, effective from the determined date. To ensure the efficient execution of the new policy, the government has meticulously developed the ‘Katsina State Integrated Revenue Management System’ application.

This state-of-the-art system is specifically engineered to harmonize the collection of all state and local government taxes and revenues. A Codification Law empowers the Katsina State Internal Revenue Service to supervise this intricate process.

Ensuring Transparency and Accountability

While the funds of local governments will be routed through the TSA, they will merely be recorded for tracking purposes and not consolidated. The state committee on TSA, in its commitment to a smooth rollout and to prevent payment delays, including the January salaries, has studied the TSA models adopted in Kaduna and Kano.

Introducing Technological Innovations in Revenue Collection

The local government chairmen have been briefed on the codification law, which necessitates the formation of revenue collection committees for each local government. This strategy is aimed at ensuring prudent financial management and accountability. The policy includes the introduction of Point of Sale (PoS) machines for vendors to collect revenue, thereby eliminating the need for cash transactions. Access Bank has been engaged to supply these PoS machines.

In areas bereft of network coverage, the PoS machines will record the transactions and upload them as soon as the network becomes available. Muhammad has made an earnest appeal to the citizens to adhere to the new tax payment system, emphasizing that their compliance would enable the government to deliver more democratic dividends.

World News