President Bola Tinubu has removed the Federal Capital Territory Administration (FCTA) from the Treasury Single Account (TSA), allowing the Nyesom Wike-led FCTA to access the territory’s Internally Generated Revenue (IGR) for the development of the nation’s capital.
Wike, while addressing reporters on recent developments on Friday, also made it known that the President has granted permission for the establishment of the FCT Civil Service Commission (CSC) to support staff in their career advancement.
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The Treasury Single Account (TSA) model was implemented in 2012 under Jonathan’s administration to address financial leakages, foster accountability, and safeguard government revenue from misappropriation.
Additionally, it aimed to centralize government accounts, thereby reducing the potential for embezzlement and misuse of funds by revenue-generating agencies.
Meanwhile, over the years, there have been major challenges affecting the model such as the inability of the federal government to remit appropriately to the various MDAs; uncertainties underlying federal government inactions and actions, bottlenecks and bureaucracy.
Explaining how he persuaded President Tinubu to remove the FCTA from the TSA, the minister stated that: “the Central bank cannot give FCTA loan, and even the IGR is spent as they come, which you cannot tangibly do anything with it.
- “I said to Mr. President that if you want FCT to really carry out its developmental projects and infrastructure, then it must come out of TSA.
- We (FCT Administration) are not a revenue-generating agency of the federal government, then what financial linkages are you blocking? The revenue comes in, and it will go to the Central Bank of Nigeria (CBN)
- “We need money to do projects; I can’t go to the Central Bank to ask for money, and I can’t go to the commercial banks; they will ask how do you pay back? So, I said we must be pulled out of TSA, that’s the only way, we can survive it.
- “Mr. President graciously agreed with us and approved that we should be pulled out from the Single Treasury Account. You will see that from next year it will be projects upon projects in FCT. And what you saw in Port Harcourt, Abuja would be something else. So for us, it is one of the happiest days, and we have to thank Mr. President for foresight.
- “People will kick against it, but it is not personal, it is about the growth of the city, the welfare of the civil servants, and the interest of the women – our mothers, sisters, and wives.”
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Continuing, the Minister of FCTA also noted that Tinubu’s political decisiveness on the matter should be commended, stating that the President’s capacity to confront the nation’s challenges speaks to his leadership skill.
- “One of the reasons that I accepted to work with Mr. President is because he has the capacity and political will to do those things that people are afraid of doing.
- The problem of this country is leadership, so many people don’t want to take action as they believe that some people will be angry.
- There is no action you take that everybody will be happy with. But what is important is that you are guided by law and your conscience,“ he added.
Wike should go further and seek amendment of the law creating FCT to enable it issue CP and bonds just like any state of the federation.