Wike Reveals Why Tinubu Removed FCT From TSA

(Nyesom Wike. Photo Credit: Vanguard News)

The Minister of the Federal Capital Territory (FCT), Nyesom Wike, on Tuesday disclosed that President Bola Tinubu removed the FCT Administration from the Treasury Single Account (TSA) because he views governance as an extension of business.

According to Wike, Tinubu understood that the FCT Administration could not operate effectively while under the TSA, and this informed his decision to have the Administration removed from it.

He made these remarks during the commissioning of the newly constructed Transit Way N2, linking the Central Business District to Wuse District via two bridges, an event held to mark Tinubu’s third year in office.

Wike explained that it is refreshing to work with and relate to people who genuinely care about the future of the country, adding that had the President not viewed governance as business, he would not have taken the decision to remove the FCT from the TSA.

He said the President recognised that the Administration would struggle to perform under the TSA arrangement, which was why, upon assuming office, he made it clear that he did not want to hear complaints or excuses, opting instead to remove the FCT from the TSA so that it could access funds from commercial banks to execute its projects.

The minister noted that carrying out the Administration’s duties would have been considerably more difficult had it remained under the TSA, stressing that Tinubu is leading what he described as a revolution aimed at improving the lives of FCT residents and Nigerians more broadly.

He explained that under the TSA, the Administration only maintained an account with the Central Bank, making it impossible to borrow from commercial banks due to a lack of collateral, while borrowing directly from the Central Bank was equally difficult.

He said this had made operations extremely challenging, but that since exiting the TSA, the Administration can now approach the Central Bank and use its internally generated revenue as collateral, a practice currently underway.

Wike commended the President for initiating what he described as this revolution, questioning why, despite successive governments coming and going, complaints have persisted that development in the FCT has remained stagnant.

He said progress became possible once a leader who understood governance as business identified the Administration’s core impediment, resolved to remove it, and empowered the team to get to work, which he said accounts for the ongoing progress.