FG shifts the burden of TSA transaction cost to payers - SyCtRenDs

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Thursday, November 1, 2018

FG shifts the burden of TSA transaction cost to payers


The Federal government has  decided to shift the burden of the one percent service charge for payments into the Treasury Single Account (TSA) to payers.

This is the highlight of a newly approved TSA tariff model unveiled at a  one-day stakeholder sensitisation exercise on TSA e-Collection charges held in Abuja on Tuesday, organised by the Office of the Accountant General of the Federation, AGF.

Ahmed Idris

The new tariff model  mandates that service charge on payments to ministries, departments and agencies (MDAs) from today, November 01, 2018  would be borne by the payer.

According to information emanating from the office the AGF, Ahmed Idris, all funds collection into the TSA would require payers to bear the transaction cost.

The new model would therefore replace the previous one wherein the merchant in this case, the federal government, bore the charges on all transactions 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 arrears of service charge.

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 to SystemSpecs, the payment technology platform provider and the deposit money bank payment outlets.

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