Buhari’s TSA is unconstitutional, RMAFC tells NASS

The Treasury Single Account of the Federal Government, TSA, has again come under attack, as the Revenue Mobilisation, Allocation and Fiscal Commission, RMAFC, has opposed the remittance of funds into TSA or any account other than the Federation Account by the agencies of the Federal Government, insisting that such action is unconstitutional.

The RMAFC, in a letter to the National Assembly, listed the agencies to include the Corporate Affairs Commission, Federal Airports Authority of Nigeria, Federal Road Safety Commission, Raw Materials Research and Development Council, Bureau of Public Enterprises, Nigerian Postal Service and Nigerian Communications Commission, insisting that they were all established for the federation and not just for the Federal Government.

According to the Commission, any law that permits any of the agencies to keep funds that it generates or pay into any account other than the Federation Account for the use of the three tiers of government violates the 1999 Constitution.

The Commission called on the National Assembly to immediately amend such laws to enable the agencies to pay into the rightful account, adding that it had also met with President Muhammadu Buhari to discuss the need to amend the laws to allow the agencies to remit their revenues to the Federation Account alone.

Speaking on the development, an official of the agency, said the Treasury Single Account,TSA, being implemented by the present administration was nothing but another name for the Consolidated Revenue Fund belonging to the Federal Government and had nothing to do with the Federation Account belonging to the three tiers of government.

Read also: Petrol price to go up as FG concludes plans to privatize refineries

The RMAFC letter reads in part: “The commission would advise that the laws establishing most of the revenue-generating agencies should be reviewed. These agencies are owned by the federation. They generate and collect huge sums, which they retain and utilise, and subsequently only remit their operating surpluses to the Consolidated Revenue Fund of the Federal Government as allowed by the various Acts establishing them and the Financial Regulation Act in conspicuous violation of constitutional provisions, specifically Sections 1(3) and 162 (18 & 10).

“The constitution stipulates that all revenues shall be remitted into the Federation Account with few exceptions like the Personal Income Tax of members of the Armed Forces and the Police, and also the residents of the Federal Capital Territory.

“Moreover, these agencies were mostly set up during the military administrations and were financed from the common pool of the federation. They also operate and administer assets such as land, seas, airways etc. belonging to the federation in addition to having operational presence across several states of the country.

“These reasons are enough to justify that these agencies should remit all their revenues to the Federation Account, and then submit their administrative/financial requirements to the National Assembly for appropriation.

“It should be noted that the commission had made presentations on this issue at several forums. Recently, the commission visited the President and advised on the need for the review of these agencies’ laws to compel them to remit all their revenues to the Federation Account.

“The commission has also been discussing with some of these agencies to resolve the issues by trying to convince them to remit their collections to the Federation Account. Some of these agencies relied on the Acts establishing them to retain and utilise their revenue collections, while others rely on financial regulations to remit their collections into the Consolidated Revenue Fund.”

The RMAFC, called on members of the National Assembly to take the necessary steps to ensure that funds made by the agencies were remitted into the Federation Account as required by the constitution.

RipplesNigeria …without borders, without fears

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now