Nigeria’s FCTA Exits Treasury Single Account: Tinubu’s Bold Fiscal Shift
President Bola Tinubu has officially removed the Federal Capital Territory Administration (FCTA) from Nigeria’s Treasury Single Account (TSA), arguing that the move provides financial flexibility and has already accelerated infrastructure development in Abuja. He credited FCT Minister Nyesom Wike for translating this policy into visible projects and institutional reforms.
Background on the TSA
The Treasury Single Account (TSA) was introduced in Nigeria to centralize government revenues, reduce leakages, and enforce fiscal discipline. By pooling funds into a single account, ministries and agencies had limited direct access, which often slowed down project execution due to bureaucratic bottlenecks. The FCTA’s exemption marks a significant departure from this framework.
Tinubu’s Rationale
President Tinubu explained that removing the FCTA from the TSA was necessary to give Abuja’s administration liquidity, speed, and operational flexibility. He emphasized that the FCTA must be able to interface directly with financial institutions to deliver critical projects without bureaucratic delays. According to him, skeptics initially questioned the wisdom of this “financial liberation,” but the results are now evident in the rapid transformation of the capital city.
Impact on Abuja’s Development
The exemption has allowed the FCTA to:
- Accelerate infrastructure delivery by eliminating bureaucratic delays
in accessing funds.
- Expand urban renewal projects, including road construction and housing
developments.
- Strengthen governance and justice institutions, such as resolving the
Nigerian Law School’s long-standing land title issue by issuing its Certificate
of Occupancy.
- Commission new facilities, including the Body of Benchers Office Annex and staff quarters at the Nigerian Law School in Bwari.
Role of Nyesom Wike
Tinubu praised Minister Nyesom Wike for effectively implementing the policy. Wike has overseen extensive infrastructure renewal, institutional reforms, and justice-sector improvements. His leadership has been described as fulfilling Tinubu’s mandate to transform Abuja into a modern, functional, and globally competitive capital city.
Addressing Judiciary Concerns
Critics suggested that the executive’s investments in justice-sector infrastructure might encroach on judicial independence. Tinubu rejected this claim, clarifying that providing infrastructure for the judiciary is a constitutional responsibility, not interference. He stressed that decent facilities are essential for training competent legal professionals and ensuring the judiciary operates effectively.
Broader Implications
This policy shift signals a new approach to governance in Abuja:
- Financial autonomy for the FCTA could serve as a model for other
regions seeking faster development.
- Potential risks include reduced central oversight and possible misuse
of funds, though Tinubu insists the benefits outweigh these concerns.
- Political significance lies in Tinubu’s confidence in Wike’s leadership and his broader vision of Abuja as a world-class capital.
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