As public conversations around Nigeria's Treasury Single Account (TSA) resurface, understanding this critical financial system and its contribution to national fiscal transparency has become increasingly important for citizens.

The TSA, fully implemented in 2015 after its introduction in 2011, has transformed how government finances are managed in Nigeria. Here are seven essential facts every Nigerian should know about this system and its operational platform, Remita.

Centralizing Public Funds to Block Leakages

The TSA was established to consolidate all government revenues into a single account maintained at the Central Bank of Nigeria (CBN). This replaced the previous fragmented system that facilitated mismanagement and financial leakages across government ministries, departments, and agencies (MDAs).

Remita's Selection Through Competitive Bidding

Remita, originally developed by SystemSpecs and now operated by Remita Payment Services Limited, secured its position as the TSA platform through a transparent bidding process that included international companies, demonstrating the capability of indigenous technology solutions.

Significant Cost Savings for Nigeria

The implementation of the TSA led to the closure of over 17,000 accounts previously held by MDAs across various commercial banks. This consolidation has reportedly saved Nigeria approximately ₦45 billion monthly in interest payments while reducing duplication, waste, and administrative costs.

Real-Time Financial Visibility

With Remita's integration, government agencies now have real-time monitoring capabilities for financial inflows and outflows. This enhanced visibility has strengthened compliance with budgetary allocations and reduced opportunities for fraud within the system.

Enforcing Fiscal Discipline

The TSA structure ensures that government funds can only be accessed after proper legislative appropriation, effectively preventing unauthorized withdrawals and enforcing greater fiscal discipline in public spending.

International Recognition

Nigeria's implementation of the TSA has received endorsements from both local institutions and international organizations like the World Bank, which has recommended it as a model of best practice. The success of Remita in this context has demonstrated that indigenous solutions can effectively address complex national challenges.

Remita's Role as a Payment Gateway

It's important to understand that Remita functions solely as a payment gateway for the TSA system. The platform does not hold, invest, or control government funds. All payments processed through Remita flow directly into the Central Bank of Nigeria.

The TSA is widely regarded as one of the most transformative public finance reforms in Nigeria's history. In the current climate of economic uncertainty, experts emphasize that the TSA represents more than just a fiscal tool—it is a strategic national asset that requires consistent institutional commitment, recognition of local innovation, and genuine efforts to maintain accountability and fairness in public-private partnerships.