#BUSINESS NEWS: FG: approves new TSA tariff model
In line with global best practices , the Federal Government has approved a new Treasury Single Account [TSA] tariff model that mandates service charge on payment to its ministries, departments and agencies [MDAs] from November 1, 2018 would be borne by the payer.
This was revealed at the just concluded One-Day Stakeholder Sensitization Exercise on TSA e-Collection Charges held in Abuja and organized by the Office of the Accountant General of the Federation.
The new model, based on the information sourced from the office of the Accountant General of the Federation (AGF), Ahmed Idris, all funds collection into the TSA would require payers to bear the transaction cost.
This new TSA would therefore replace the previous one where the merchant, the Federal Government—bore the charges on all transactions to the service providers on behalf of payers.
In the previous tariff , the federal government owed the technology service providers and the participating deposit money banks up to two years in service charge.
In 2012, the pilot TSA scheme commenced using a unified structure of accounting for the 217 MDAs for accountability and transparency in public fund management.
The initiative was fully implemented in August 2015 and covered over 1000 MDAs after a presidential directive.
At commencement, all players, including all commercial banks, System Specs and the Central Bank of Nigeria [CBN], agreed that a fee of 1 per cent of funds collected was payable.