Wike explains why Tinubu removed FCT from the Treasury Single Account

    The Federal Capital Territory’s minister, Nyesom Wike, stated that President Bola Tinubu has approved the FCT’s departure from the Treasury Single Account in order to make it easier for the Administration to obtain funding for significant infrastructure projects.

    Speaking at a press conference on Friday in Abuja, the minister claimed that the capital city had too many decades-long abandoned projects because the TSA has made it difficult for the FCTA to obtain financing to complete projects.

    To guarantee that all revenue receipts and payments are made through a Consolidated Revenue Account (CRA) at the Central Bank of Nigeria, the government uses a public accounting system known as TSA, which consists of a single account or a network of connected accounts.

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    Additionally, he stated that the Administration will be able to obtain financing in the form of loans from commercial banks to complete significant infrastructure projects—something it had previously been unable to accomplish due to payback concerns—by leaving the TSA.

    Wike explains

    “The city is not developing as it should, and there are numerous projects scattered around. Projects are given away without any cash support. Since 2002, there have been a lot of projects. Who is accountable? The government joined the single Treasury account, in which the central bank will hold all of the accounts.

    The IGR is spent as it comes in and the central bank is no longer able to lend us money, so there is nothing you can physically do with it. Thus, I told Mr. Presidnet, it would be best if we left if you wanted FCT to complete the infrastructure projects, the minister stated.

    He praised the president for making a daring decision that he claimed would make any leader shudder, but added that the FCTA will launch enormous infrastructure projects in a year that will yield amazing outcomes.

    “You’ll notice that projects will be up on projects in FCT starting next year. What you witnessed in Port-Harcourt will not amount to much. Thus, the laments of insecurity, lack of light, and lack of roads will eventually end.

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