TSA: Payers to bear service charge as FG’s new tariff regime takes effect Nov 1
The federal government has announced that from November 1, 2018, the service charge on all payment to its ministries, departments and agencies (MDAs) on the Treasury Single Account (TSA) platform would be borne by the payer.
This was made known on Wednesday after the One-Day Stakeholder Sensitisation Exercise on TSA e-Collection Charges held in Abuja organised by the Office of the Accountant General of the Federation.
Under the new model, all funds collected into the TSA would require payers to bear the transaction cost.
The new model would replace the previous one wherein the merchant — the federal government— bore the charges on all transactions to the service providers on behalf of payers.
In the previous tariff regime, the federal government owed the technology service providers and the participating deposit money banks up to two years in service charge.
In 2012, the pilot TSA scheme commenced using a unified structure of accounting for the 217 MDAs for accountability and transparency in public fund management.
In August 2015, the initiative was fully implemented and covered over 1000 MDAs after a presidential directive.
At commencement, all players, including all commercial banks, SystemSpecs and the Central Bank of Nigeria (CBN) agreed that a fee of 1% of funds collected is payable.
