What the account will do
Ensure complete oversight over government’s cash flows by forcing governments to withdraw all public funds from commercial banks, thus reducing the cashflow within the banking sector. The downside of this is that it will subsequently stifle economic activity by reducing lending to the productive sectors of the economy.
It also means the government will operate fewer if not no accounts in commercial banks and this will see reduced costs related to services offered by commercial banks to the government.
It will supplement the electronic Integrated Financial Management Information System in sealing loopholes used to loot public funds.