Implementation of the Treasury Single Account System on Public Financial Management in Nigeria

Abstract

The objective of the study was to appraise the effect of the implementation of the Treasury Single Account System on Public Financial Management in Nigeria. The survey research design was used and a sample of 246 was selected. Result of the findings revealed that, there is a significant benefit of the implementation of the Treasury Single Account System by Ministries, Departments and Agencies in Nigerian; the implementation of the Treasury Single Account System has positive significant effect on Public Financial Management in Nigeria; there is positive and significant relationship between the implementation of the Treasury Single Account System and Economic Growth and Development in Nigeria and significant challenges are encountered by Nigerian Ministries, Department and Agencies in the Implementation of the Treasury Single Account System. Hence the study recommended that the government should create appropriate enabling environments and legislative supports for the policy to bring about desired success and intended goals. Government should make available infrastructural facilities and technological equipment for the MDAs for effective take-off of the policy in respective locations where it is not yet implemented. Only a properly tailored and monitored TSA policy can achieve its desired purpose and serve as an effective tool in Public fund Management.

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“…Adeolu (2015) defined Treasury Single Account as a public accounting system under which all government revenue, receipts and income are collected into one single account, usually maintained by the country's Central Bank and all payments done through this account as well. Onyekpere (2015) described the Treasury Single Account (TSA) as a unified structure of government bank accounts which enables the consolidation and optimal utilization of government cash resources. In other words, the TSA is a bank account or a set of linked bank accounts through which the government transacts all its receipts and payments and gets a consolidated view of its cash position at any given time.…”

“…Kanu (2016) defined Treasury Single Account (TSA) as one of the financial policies of the federal government of Nigeria established and implemented by the government to integrate all revenues and treasuries from all ministries, departments and agencies and extra ministerial departments in the country for the purpose of ensuring that all the collections are paid into money depositing banks trailed to a single account at the apex bank of the nation -the Central Bank of Nigeria. Besides, Onyekpere (2015), described TSA as an organized bank account of a set of linked bank accounts through which the government of Nigeria and beyond transacts all its receipts and payments as well as obtains a consolidated view of its cash position at the end of each financial transaction day, week, month and year.…”

“…Accordingly, government incurs cost of borrowing on the overdrawn balance while the DMBs that are keeping the MDAs' idle funds do not remunerate them but buy government treasury bills and bonds to earn interest income. The level of ways and means granted by CBN to meet cash flow shortfalls has grown over the years reaching N342 billion in 2014 (Onyekpere, 2015).…”

Accountability Process Analysis in the TSA Policy Implementation, the Perception on the Public Sector Financial Performance in Nigeria

“…This study aims at ensuring accountability for the financial resources of government, enhancing transparency, and avoiding mismanagement of public funds (Geoffrey, 2011;Otemu, Rita, & Otemu, 2018). In Nigeria, the TSA policy was introduced as part of NPM reforms addressing issues in public sector financial control that fall under the national strategy of government for public sector reforms (Liguori & Steccolini, 2014;Ongaro & Kickert, 2019;Pedersen & Löfgren, 2012) towards the aspiration of the government vision 2020 (Olanipekun et al, 2016).…”