By Daniel Edu
President Bola Tinubu has made the strategic decision to withdraw the Federal Capital Territory Administration (FCTA) from the Treasury Single Account (TSA) arrangement.
This significant move is anticipated to facilitate accelerated progress and development within the FCTA, now under the leadership of Nyesom Wike, by granting him greater financial autonomy and control.
The announcement of this shift in financial management, which empowers Wike with more fiscal authority over the Federal Capital Territory, was made during a press conference held on Friday in Abuja.
The Treasury Single Account, a policy introduced by the Federal Government in 2015, mandated that all government revenues be consolidated into a single account to enhance transparency and accountability in the management of public funds.
Wike emphasized the need for this change by pointing out challenges faced by the FCT in terms of stalled growth, a backlog of projects without adequate financial backing, and limited financial flexibility due to adherence to the single treasury account system.
“The city has not been developing as expected, with numerous projects left incomplete and awarded without sufficient financial support. Many of these projects date back to 2002. This situation is primarily because the government consolidated all its accounts into the central bank through the single treasury account,” Wike explained.
He further elaborated, “Under the current system, even the central bank cannot provide us with loans, and the internally generated revenue is spent as it is earned, hindering our capacity to undertake tangible infrastructure projects. Consequently, I proposed to President Tinubu that if we desire the FCT to execute essential infrastructure projects effectively, it is imperative that we withdraw from the TSA.”
Wike concluded with an optimistic outlook for the future, stating, “Beginning next year, you can expect to witness a surge in infrastructure projects within the FCT. What you witnessed in Port-Harcourt will pale in comparison. The challenges of insecurity, power outages, and inadequate road networks will soon be consigned to history, as we set forth on a path of comprehensive development in the region.”
