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Payers to bear charges as new TSA regime begins

Posted On: Thu 01 Nov 2018 By PUNCH NG

There are indications that from today, (Thursday, November 1), the service charge on all payments into the Treasury Single Account of the Federal Government will be borne by the payer of such funds.


Findings revealed that this was one of the decisions reached at a stakeholders’ sensitisation programme on TSA e-Collection charges held in Abuja on Wednesday.


The sensitisation programme was organised by the Office of the Accountant General of the Federation.


The new tariff regime, according to findings, is in line with global best practices where service charges are borne by the payer and not the recipient.


Under the new model, all funds collection into the TSA will require the payers to bear the transaction cost.


The new model will replace the previous arrangement where the Federal Government bore the charges on all transactions to the service providers on behalf of the payers.


It was learnt that under the previous tariff regime, the Federal Government owed the technology service providers and the participating Deposit Money Banks up to two years’ arrears in service charges.


The TSA initiative, which took off fully in September 2015, had led to the closure of 20,000 bank accounts, while over N8tn had been moved from the banks to the Central Bank of Nigeria.


A total of 1,674 government Ministries, Departments and Agencies have been enrolled onto the TSA platform.