Treasury Single Account Policy and Revenue Generation Among Federal Parastatals in Ekiti-State, Nigeria

Abstract

Treasury Single Account (TSA) is a new government policy to fight corruption in the Nigerian public sector. The policy has received a lot of compliments from many Nigerians; however, empirical studies have produced mixed results. The study examined the effects of Treasury Single Accounts (TSA) on the revenue generation of federal government parastatals in Ekiti state. The study specifically examined the effect of TSA on revenue generation of Federal University Oye-Ekiti, Federal Teaching Hospital Ido, Federal Road Safety Commission Ado-Ekiti and Federal Polytechnics Ado-Ekiti. Both Descriptive and inferential statistics were used. The descriptive statistics include mean, standard deviation, minimum and maximum while the study employed paired sample t-test for inferential analysis. The study reveals that TSA has not enhanced the revenue generation among federal government parastatals in Ekiti state. The research further shows that TSA is counterproductive since average revenue generated after the implementation of TSA is lower than the average revenue that the parastatals generated before the implementation of TSA. The study recommends that the federal government of Nigeria should investigate the reasons why the TSA is counterproductive in Ekiti state and adequately monitor its implementation.

Treasury Single Account in Nigeria as a Tool for Fraud Prevention

“…Also posited out by the result was that TSA reduces the level of idle cash with commercial banks. More recently, Ogungbade et al [15] using paired sample t-test examine the effect of TSA on revenue generation of some federal MDAs in Ekiti State and the result therefrom revealed that, TSA has not enhanced the revenue generation among federal MDAs in Ekiti State and that TSA is counterproductive in the State. This study is underpinned by the Institutional-centric theory of finances and resources-based theories.…”

“…This sparked the interest of scholars, researchers, financial analysts, and policymakers to identify the effect of TSA on PFM in Nigeria. Several studies were conducted in Nigeria to find the effect of TSA implementation on PFM [1,3,4,9,15]. The findings from these studies are still contradictory and most of the studies conducted are carried out in the Southern part of the country, hence the need to ascertain whether the introduction of TSA in Nigeria aided in the elimination of fraud in Nigeria with particular reference to federal MDAs in Sokoto State.…”