a. Benefits of the Treasury Single Account (TSA):

1. Improved Cash Management: Centralized control allows for more efficient use of government funds and reduces idle cash.
2. Enhanced Transparency and Accountability: Consolidating government funds minimizes leakages and irregularities.
3. Reduced Borrowing Costs: TSA implementation lessens the need for borrowing as available funds are optimally managed.
4. Timely Payments: Facilitates prompt release of funds to MDAs for operations, improving service delivery.
5. Efficient Revenue Collection: Streamlines the collection process, ensuring that all revenue flows directly to the government.

b. Challenges of the Treasury Single Account (TSA):

1. Initial High Implementation Cost: Setting up a centralized system is costly and requires substantial investment in IT infrastructure.
2. Resistance to Change: MDAs may resist the policy due to reduced financial autonomy and control over their funds.
3. Banking Sector Impact: Loss of government deposits affects banks’ liquidity and could reduce their lending capacity.
4. Limited Flexibility: A centralized approach may reduce the responsiveness of MDAs to urgent financial needs.
5. Capacity Issues: Lack of adequate training and resources can hinder effective TSA management and operations.

c. Roles and Responsibilities of MDAs under TSA Scheme:

1. Revenue Collection: Ensure accurate and timely deposit of all generated revenue into the TSA.
2. Compliance with Reporting Standards: Submit financial reports as mandated under the TSA framework for transparency.
3. Budget Adherence: Operate within approved budgets as funds are centrally managed.
4. Timely Fund Requests: Submit requests for fund releases promptly to avoid operational disruptions.
5. Coordination with Accountant-General’s Office: Cooperate with financial oversight and audits to ensure adherence to TSA policies.

d. Roles and Responsibilities of State Accountant-Generals under TSA Scheme:

1. Monitoring TSA Transactions: Oversee the inflows and outflows to ensure compliance with TSA guidelines.
2. Disbursement of Funds: Ensure timely release of funds to MDAs in line with approved budgets.
3. Regular Reporting: Submit reports on TSA balances, cash flow, and other relevant financial details to the Federal Government.
4. Enforcement of TSA Compliance: Implement TSA policies across MDAs and ensure adherence to set rules.
5. Liaison with Central Bank: Coordinate with the Central Bank of Nigeria for the effective management and reconciliation of TSA accounts.