By Emmanuel NICHOLAS
Yesterday, being the 5th day of January 2026, Governor Umo Eno, PhD, signed into law the ₦1,584,271,856,630.00 Appropriation Bill for the 2026 fiscal year.
Of this total, ₦416,594,925,850.00, representing 24 percent, is earmarked for recurrent expenditure, while ₦1,167,676,930,780.00, representing 76 percent, is devoted to capital projects.
To ensure the realization of the projects articulated in the budget, the administration has emphasized the urgent need to boost internally generated revenue (IGR).
Accordingly, effective January 1, 2026, Akwa Ibom State has mandated that all IGR be paid directly into a State‑designated Treasury Single Account (TSA) and that government payments be processed exclusively through the AkwaRemit platform , a measure officials describe as a significant step in fiscal modernization.
Just yesterday, the Governor established a committee, headed by Hon. Emem Bob, to ensure full implementation of the Single Account payment.
The policy, however, has generated controversy on social media: many commentators have condemned the decision, and some have alleged that the single‑account directive is being used to undermine the commercial banks that previously hosted the government’s accounts.
To clear their doubt, this policy aligns revenue collection, payment flow and cash management under a single, digitally-enabled framework, setting the stage for stronger public finance outcomes.
Let me help them to understand the workings of single account, a Treasury Single Account is a unified structure of government bank accounts that gives the state consolidated control and visibility over its cash resources.
By channeling all IGR into one designated account and routing expenditures through AkwaRemit, the state eliminates fragmented balances held across multiple banks and agencies, enabling centralized policy-driven cash management.
The most immediate benefit is consolidated cash management. With all revenue flowing into a single account, the state treasury can see total liquidity in real time, avoid idle balances spread across many accounts, and make more efficient short-term investments or meet payment obligations without unnecessary borrowing .
Centralizing IGR into the TSA also reduces revenue leakages and unauthorized diversions. When collections and receipts are standardized through designated channels and reconciled centrally, opportunities for misappropriation decline and audit trails improve, helping to capture IGR that previously escaped proper accounting.
Real-time visibility into receipts and expenditures via the TSA and AkwaRemit enhances forecasting and cash planning.
The state can project cash flows more accurately, schedule priority payments such as debt service or critical capital projects, and respond more quickly to revenue shortfalls or surpluses.
Better cash visibility and reduced fragmentation frequently lower the state’s short-term borrowing needs and associated interest costs. By leveraging consolidated balances and optimizing cash timing, Akwa Ibom can reduce expensive overdrafts or emergency borrowings and improve its overall debt management profile.
The TSA model allows the state to allocate funds strategically. When revenue is visible centrally, policymakers can prioritize spending for high-impact sectors (health, education, infrastructure) and align disbursements with budget appropriations, ensuring that limited resources are deployed where they bring the greatest public benefit.
Centralization improves budget credibility. When actual cash flows and commitments are transparent and reconciled, the budget becomes a more reliable tool for planning. This credibility supports better intra-year adjustments and fosters trust between the executive, legislature, and external stakeholders.
Transparency and accountability are strengthened under the TSA and AkwaRemit. Digital payment records create immutable audit trails for IGR receipts and payments, making it easier to detect irregularities, enforce compliance, and hold officials accountable—factors that reduce corruption and improve governance.
Fiscal discipline across ministries, departments and agencies (MDAs) is enhanced because individual entities no longer retain off-budget balances. Central control curbs uncontrolled spending by agencies and ensures that disbursements align with approved allocations and cash availability.
The AkwaRemit platform, as the state’s designated payment system, promises faster and more reliable payment processing. Suppliers, contractors, and employees can be paid electronically on schedule, reducing payment delays that disrupt service delivery and cause cost escalations.
Operational efficiency and lower transaction costs follow from digital processing. AkwaRemit can reduce manual paperwork, reconciliation time, and banking fees associated with maintaining multiple accounts, freeing administrative capacity for higher-value tasks within the public service.
Improved payment reliability and speed translate into better public service delivery. Timely remuneration of health workers, education staff, and contractors keeps public services functioning, increases morale, and reduces the indirect social costs of payment delays.
Economically, a well-managed TSA and transparent payment platform boost investor confidence. Domestic and foreign investors see reduced fiscal risk and clearer government priorities, which can translate into increased private investment and potentially lower risk premia for state borrowing.
Local businesses and MSMEs benefit when the state pays on time through AkwaRemit. Predictable cash flows for suppliers lower working capital constraints, encourage business expansion, and can improve the viability of local supply chains—stimulating job creation across the economy.
Formalizing revenue collection and payment processes broadens the tax base over time. When IGR is collected consistently through standardized digital channels, compliance improves and informal collections decline, strengthening the medium-term revenue foundation for public investment.
The banking and financial sector in Akwa Ibom can become more efficient as liquidity is concentrated and managed strategically. Consolidated government balances can be used for short-term placements, improving monetary transmission, and banks gain better visibility into government flows that support product innovation.
1 Macro-fiscal stability is a likely outcome: tighter cash management reduces the volatility of government expenditure financing, which can help dampen inflationary pressures and lower the need for emergency fiscal measures that disrupt economic activity.
The broader economic multipliers are significant. Savings from reduced borrowing costs, lower leakages and improved efficiency can be redirected into capital projects, yielding infrastructure improvements, higher productivity and sustained employment growth—benefits that accrue to households and businesses across the state.
Governor Umo Eno knows to maximize these benefits, Akwa Ibom should pair TSA implementation with strong governance, robust IT security for AkwaRemit, that is why he has saddled Ministry of Science and digital economy to manage the platform and conduct capacity building for MDAs, and transparent reporting to the public and legislature.
With these complementary measures, the TSA and AkwaRemit platform can be transformative ,improving fiscal discipline, expanding fiscal space, and accelerating inclusive economic development across the state..
Governor Umo Eno intends to ensure that Akwa Ibom taxpayers’ money is not stolen and is used to develop the state for the common good.
