The Minister of Finance, Budget and National Planning, Zainab Ahmed, on Tuesday signed a Memorandum of Understanding with The Gambia to assist the Nigeria’s foreign policy great knowledge, experience and technical expertise on the implementation of the Treasury Single Account.
Ahmed, who signed on behalf of Nigeria in Abuja, said the MoU was based on the recommendation of the International Monetary Fund, adding that Nigeria was saving about N45bn monthly through the implementation of the TSA, and that The Gambia had in 2019 requested for technical cooperation with Nigeria to support its own transition to TSA.
The minister further stated that Nigeria would export other Public Financial Management reforms to The Gambia.
She said, “The cooperation seeks to avail the Ministry of Finance and Economic Affairs of The Gambia with the vast knowledge, experience and technical expertise that Nigeria has gained in the past 15 years of implementing TSA in particular and other Public Financial Management reforms, in general.
“By so doing, The Gambia is properly guided as it implements its own TSA. The cooperation will enable The Gambia to leverage on the experience of Nigeria to build on our strengths while avoiding our mistakes.”
Ahmed also stated that TSA implementation had helped the Federal Government to make monthly savings that run in several billions of naira.
She said, “Implementation of TSA has benefited Nigeria immensely. Among other verifiable benefits, we can now easily determine our aggregate cash balance which is critical for managing public finances at a time of acute fiscal constraints.
“In addition, we are saving average N45bn monthly in interest payments. On the monetary policy side, we have better control over money supply and therefore able to rein in inflation and undue pressure on the naira.”
Ahmed disclosed to the officials from The Gambia that if the TSA is actively implemented, The Gambian government would enjoy all of these benefits.
“Do not embark on this journey if you are not confident that you have the buy-in of your topmost political leadership.”