The Republic of Gambia has sought the help of Nigeria as it adopts the Treasury Single Account (TSA) just as the Federal Government said it saves N45 billion on interests and charges monthly after adopting the TSA.
The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, disclosed this Tuesday while signing a memorandum of understanding (MoU), with the Gambian High Commissioner to Nigeria, Amadou Sheikh Oman Taal, for The Gambia.
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Before the TSA became operational in 2015, government funds kept in banks attracted huge charges and interests running into billions of naira.
“Implementation of TSA has benefited Nigeria immensely. Among other verifiable benefits, we can now easily determine our aggregate cash balance which is critical for managing public finances at a time of acute fiscal constraints. In addition, we are saving on average N45 billion monthly in interest payments,” she said.
The Gambia requested for technical co-operation with Nigeria to support its own transition to TSA. To that aim, representatives of both countries worked on a Memorandum of Understanding (MOU) detailing the terms and scope of the co-operation which they both signed.
She advised the country to be resolute in implementing the TSA. “You need strong political support to deal with the heavy lifting that comes with public sector reforms.
“Do not embark on this journey if you are not confident that you have the buy-in of your topmost political leadership. It is the most potent antidote against the several headwinds that will try to undermine and derail your reform effort.”
Commenting, Ms Ada Gaye, the Permanent Secretary in the Ministry of Finance of The Gambia, said: “The Gambia wants to efficiently manage its funds; the fragmentation of accounting systems in The Gambia is huge. It is, therefore, noteworthy for The Gambia to adopt TSA.”
The Gambian High Commissioner, Taal, said Nigeria is a big example within the Economic Community of West African States (ECOWAS) region.
“We are trying to make reforms in our financial management. Therefore, this collaboration with Nigeria is very important to us. So, The Gambia Central Bank will get closer to the Central Bank of Nigeria (CBN) to learn and get the necessary experience,” he said.