TSA was ‘crippling cancer’ that hindered FCT dev’t — Wike reveals

By Stanley Onyekwere

The Minister of the Federal Capital Territory (FCT), Nyesom Wike, has described the inclusion of the FCT Administration under the Treasury Single Account (TSA) as a “crippling cancer” that previously stalled key infrastructural development in the nation’s capital.

Speaking at a public event attended by high-ranking government officials, including leadership from the National Assembly, Wike explained how financial restrictions under previous administrations prevented Abuja from securing necessary commercial backing for major urban projects.

According to him, the policy requiring the FCT to channel its Internally Generated Revenue (IGR) through the federal centralized banking mechanism tied the administration’s hands.

“By being restricted from dealing directly with commercial banks, the FCT was unable to leverage its independent revenues as collateral for project financing.

“Placing the Federal Capital Territory under the Treasury Single Account was the worst thing any administration could do. There is no government in this world that can grow without borrowing… You can never have enough capital,” the Minister noted.

Wike emphasized that the FCT collects its own internal revenue and should not have been lumped into financial frameworks designed for core federal revenue collectors.

He added that without the ability to pledge predictable monthly IGR deductions to commercial banks, securing loans for high-value infrastructure such as multi-billion Naira road networks and water systems was virtually impossible.

The minister praised President Bola Ahmed Tinubu for recognizing the systemic bottleneck shortly after taking office and granting the FCT an explicit exit from the TSA regime.

According to Wike, the exit allowed the administration to establish structured partnerships with commercial banks, securing targeted credit facilities backed directly by monthly revenue streams.

He noted that the current wave of rapid structural projects across Abuja -spanning newly commissioned bridges, expanded highways, and improved water supply systems – is a direct result of this financial decoupling.

While acknowledging the presence of key lawmakers and executive representatives including leadership from the Senate, the House of Representatives, and the Ministry of Budget and Economic Planning, Wike reiterated that the political will to enact the financial exit rested entirely with President Tinubu.

Clarifying that his remarks were not intended to disparage past FCT ministers, Wike noted that knowing what steps to take is ineffective without executive approval from above.

He credited the administration’s current momentum to strong presidential backing, concluding that the decision effectively liberated the FCT from decades of financial stagnation.