Page 1 of 13
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
ISSN: 2395-0463
Volume 03 Issue 02
February 2017
Available online: http://internationaljournalofresearch.org/ P a g e | 139
Operating Treasury Single Account in Public Services:
The Challenges and Prospects in Nigeria
1Talabi, A. O. ; 2Adekanmbi, J. A. ;
3
omula, G.O.
1Department of Accountancy, The Federal Polytechnic, Ile Oluji, Ondo State.
Nigeria.
2Department of Business Education, College of Education, Ikere- Ekiti, Ekiti
State. Nigeria.
3Department of Accountancy, The Federal Polytechnic, Ile Oluji, Ondo State.
Nigeria
ABSTRACT
The introduction of Treasury Single Account
(TSA) does not take place in vacuum. It
hangs on the economic reform programme
and the needs to control government cash
balances, promotion of transparency in
governance and accountability in public
sector. This paper highlighted the operation
of TSA in public services. It emphasized on
the challenges and prospects of TSA in
government sector. However, the rationales
for the operation of TSA were over view with
more emphasized on its benefits in public
services which flow from its objectives to
include improvement of appropriation
control (i e control over budget allocation).
In conclusion, the paper did an analysis on
the prospects of TSA, including how it can
be helpful in term of economic development
and the recommendations were made to
include effective implementation of TSA
requires a well developed financial system,
adequate technological infrastructure and
sophisticated banking system.
Key words: Accountability, Control
Government, Transparency, Economic
Development, Treasury Single Account.
INTRODUCTION
In line with the determination to
ensure discipline and greater transparency in
the management of the nation‟s finances,
President Muhammadu Buhari directed all
Ministries, Department and Agencies
(MDAs) of government to enhance forth pay
their earnings into a unified bank account
known as Treasury Single Account (TSA).
Page 2 of 13
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
ISSN: 2395-0463
Volume 03 Issue 02
February 2017
Available online: http://internationaljournalofresearch.org/ P a g e | 140
The directive applies to the MDAs that are
funded from the Federation Account such as
Nigerian National Petroleum Corporation
(NNPC), the Central Bank of Nigeria
(CBN), the Securities and Exchange
Commission (SEC), the Nigerian Port
Authority (NPA), the Federal Inland
Revenue Service (FIRS) and a host of
others. The MDAs that are to pay all their
revenues to a sub-account linked to the TSA
at CBN Okechukwu, (2015). Over the years
Nigeria Government has continued to
operate multiple accounts for the collection
and spending of Government revenue in
flagrant disregard to the provisions of the
constitution of the Federal Republic of
Nigeria; section 80 (1) of 1999 which
requires that all government revenue be
remitted in to a single account of
Consolidated Revenue Fund (CRF).
Without adherence to the constitution
provisions, the Federal Government had
been operating a fragmented banking
arrangement with thousands of banks
accounts in multiple banks.
As a result of these, over N70 billion
Government funds was lost in failed
commercial banks OAGF, March 2012. The
Federal Government of Nigeria, through the
office of the Accountant General (OAGF) is
implementing Treasury Single Account
(TSA) as a part of the Economic Reform
Programme and the “Change Agenda” of the
present administration for National
Development.
However, in justifying the basis of
TSA , in 2012, government ran a pilot
scheme for a single account using 217
Ministries, Departments and Agencies
(MDAs) as a test case; The pilot scheme
save Nigeria about N500 billion in frivolous
spending. The success of the scheme
motivated the government to fully
implement TSA, leading to the directives to
banks to implement the technology platform
that will help accommodate the TSA
scheme. However, the recent directive by
President Mohammed Buhari that all
government revenues should be remitted to a
Treasury Single Account is in consonance
with this economic reform programme and
in compliance with the provisions of the
1999 constitution.
The Federal Government officially
commenced the operation of TSA on
Monday, 17th of September, 2015. The
directive to banks has effectively moved
about N1.2 trillion from commercial banks
to the Central Bank of Nigeria. However,
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Page 3 of 13
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
ISSN: 2395-0463
Volume 03 Issue 02
February 2017
Available online: http://internationaljournalofresearch.org/ P a g e | 141
there is no doubt, this new development will
have negative effect on all deposit money
banks because some see public funds as gifts
and cheap funds.
Concept of Treasury Single Account
(TSA)
Treasury Single Account (TSA) is a
unified structure of the Government bank
accounts; a single account or sets of linked
accounts for all government transactions.
TSA is a public accounting system under
which all Government revenues, receipts
and income are collected into one single
account or Consolidated Revenue Funds,
usually maintained by the Central Bank of
Nigeria, and all payments done through this
account as well. According to Yusuf and
Chiejina, (2015) a TSA is a unified structure
of government bank account enabling
consolidation and optimal utilization of
government cash resources. It 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.
However, the maintenance of a TSA
will help to ensure proper cash management
or elimination of idle funds usually left with
deposit money banks and in a way to
enhance reconciliation of revenue collection
and payment Adeolu (2015).
In addition to the above, Treasury
Single Account can be defined as a public
sector or government accounting policy
which is meant to unify government bank
accounts by which all government
transactions are linked in order to ensure
effective and efficient management and
control of public funds.
Rationale for Treasury Single Account
(TSA) In Nigeria
In November 2013, the CBN called for
an urgent implementation of the TSA in
order to properly manage the country‟s
revenue. The CBN stated this in a
communiqué at the end of its 235th
Monetary Policy Committee (MPC) meeting
where it noted that a TSA is an essential tool
for consolidating and managing
government‟s cash resources. In countries
with fragmented government banking
arrangement, the establishment of a TSA
receives priority in the public financial
management reform agenda. The CBN
lamented that the “erosion” of the fiscal
buffers through the depletion of the Excess
Crude Account (ECA) has further exposed
the economy to vulnerabilities while the fall
