Fed Govt sets up special TSA account for COVID-19 donations

The Government has put created a framework for the collection, management and reporting of COVID 19 donations.

According to the Minister of Finance Budget and National Planning Zainab Ahmed, the federal government is developing a comprehensive framework for the transparent management of the contributions which at last count now stands at ?19.4 billion.

In the interim, President Buhari “has approved the restructuring of the Treasury Single Account (TSA) in order to better mobilize cash donations from the generality of our people and corporate bodies across the nation.”

Under the new arrangement, the TSA account has now been structured to “create flexibility and build a coalition with financial institutions while maintaining the sanctity of the TSA.”

Going forward, the COVID-19 Donor Accounts, which will form part of the existing TSA arrangement, will be opened with: Zenith Bank; Access Bank; Guaranty Trust Bank; UBA; and First Bank.

These accounts Zainab Ahmed said “will be linked to the main TSA for ease of monitoring and reporting.”

She said “will be issuing circulars and Ministerial Orders to ensure that charitable donations by benevolent companies to support our COVID-19 Pandemic efforts are tax deductible, pursuant to Section 25 of the Companies Income Tax Act.”

On support to private sector, the finance minister said government is “organising support to the private sector, the CBN has announced infrastructure funds, funds for SMEs so that private sector can access this funds.”

She noted that “the Afrexim Bank has announced $3billion funds that is also available for the private sector. The IFC which is branch of the World Bank has also got funds which is for the private sector, the federal government is not in a position because of our fiscal space to give grant to the private sector.

On when April salaries will be paid, the finance minister said “salaries are paid traditionally when we do FAAC so immediately FAAC is concluded then it is time to pay salaries.

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