IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF ECONOMICS AND FINANCIAL MANAGEMENT (IJEFM )

E-ISSN 2545-5966
P-ISSN 2695-1932
VOL. 7 NO. 6 2022
DOI: 10.56201/ijefm.v7.no6.2022.pg79.93

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Operation of Treasury Single Account (TSA) Issues, Challenges and Way Forward

Abubakar Bala Danlami FCNA, Alhaji Kawugana

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Abstract

The Treasury Single Account (TSA) is a financial reform initiative aimed at ensuring accountability, transparency, and efficient management of public funds. The policy, introduced by the Nigerian government, consolidates all government revenue accounts into a unified structure under the control of the Central Bank of Nigeria (CBN). This system eliminates the proliferation of multiple government accounts, reduces leakages, and enhances oversight of public funds. This study examines the operation of the TSA, its benefits, issues, and challenges, as well as the way forward for improving its effectiveness. Findings reveal that while the TSA has significantly curbed financial mismanagement, enhanced revenue monitoring, and reduced corruption, it also presents challenges such as technical implementation difficulties, delayed fund disbursement, and resistance from government agencies accustomed to the old system. Additionally, inadequate ICT infrastructure, limited financial autonomy for agencies, and bureaucratic inefficiencies have hindered the full realization of the TSA’s potential. The study concludes that the TSA is a crucial reform for financial prudence in Nigeria but requires continuous improvement, better ICT integration, enhanced financial autonomy for MDAs, and stricter enforcement mechanisms. Recommendations include upgrading digital infrastructure, training government personnel, enforcing compliance measures, and addressing cash flow constraints to maximize the benefits of the TSA system.

keywords:

Treasury Single Account, Public Financial Management, Government Revenue, Transparency, Corruption, Fiscal Policy, Nigeria

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References:

Adebayo, P. A. (2019). Public Financial Management and Accountability in Nigeria. Lagos:
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Adekunle, O. & Ibrahim, K. (2021). Treasury Single Account (TSA) and Financial Discipline in
Nigeria: A Critical Analysis. Journal of Public Administration and Finance, 8(2), 45-60.
Eke, R. A., & Onuoha, C. (2020). Impact of TSA on Government Revenue and Fiscal Policy
Implementation in Nigeria. African Journal of Economics and Management Studies, 11(4),
120-137.
Federal Ministry of Finance. (2022). Treasury Single Account (TSA) Implementation Report.
Abuja: Government Press.
Office of the Accountant General of the Federation. (2021). The Role of TSA in Enhancing
Financial Transparency in Nigeria. Abuja: OAGF.
Oladipo, M. & Yusuf, T. (2018). Evaluating the Efficiency of TSA in Nigeria’s Public Sector. In
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World Bank. (2021). Treasury Single Account: Global Perspectives and Nigeria’s Experience.
World Bank Reports. Retrieved from https://www.worldbank.org

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