TSA’ll promote proper management of public funds – CIBN

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The Chartered Institute of Bankers of Nigeria says the Treasury Single Account policy is good for the country as it will enhance accountability and transparency in the management of public funds.

The President/Chairman of Council, CIBN, Prof. Segun Ajibola, said this at a retreat held on the TSA policy in Abuja, according to a statement.

According to him, the policy is capable of promoting fiscal and monetary discipline while instilling sanity in the management of public funds.

Ajibola said, “The CIBN identifies with the spirit and letter of the TSA. Indeed, one of the key mandates of the CIBN is to promote ethics and professionalism among banking and finance practitioners in the country, both corporate and individuals. One of the vexed and often-cited areas of unethical practices among bankers in the recent past is the management of public funds in the hands of the banks.

“The CIBN, therefore, supports the introduction of the TSA as a vehicle for instilling sanity in the management of public funds and promoting fiscal and monetary discipline. This way, the TSA is a tool for fighting the hydra-headed corruption in our public and private lives.

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He added, “And by benchmarking international best practices in the management of public funds, Nigeria would have gone a step further in improving her transparency parameters in the eyes of the comity of nations.”

The CIBN president, however, pointed out that there were some challenges regarding the implementation of the policy.

He listed the timing of its introduction and the speed with which it was implemented as some of the issues that have affected banks.

Ajibola said, “As it is, the public funds pulled out of the banks are in a way sterilised at the moment. The economy is presently in dire need of some element of reflation to assure growth and by extension development.

“Elementary economic principle tells us that the impact of money stock on economic performance of any country is a function of the velocity of that money stock over a period of time. There are several ways the TSA funds could be applied to achieve this – infrastructural financing, public private partnership, among others.”

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He noted that a phased withdrawal of public funds from banks would have helped to stem the current fledging position of the country’s financial system.

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