Treasury Single Account (TSA) System, Financial System and Economic Growth in Nigeria

Abstract

This study looked at the effect of the Treasury Single Account (TSA) system on the Nigerian financial system and economic growth. Since the inception of the Buhari’s Administration, TSA has been a topic of widespread discussion from all over the media and the economy at large, due to the impact, some experts, especially, those in the financial sector believe it has on the financial institutions in particular and the economy at large.However, using the Statistical Package for Social Science (SPSS), a descriptive method was used to analyse secondary data gathered from the financial reports (balance sheet and profit and loss account reports) of five (5) major deposit money banks (DMBs) in Nigeria.This study concluded that, TSA does not have so much negative impact on the Nigerian financial institutions as most of the institutions are still very stable and buoyant financially. Moreover, the financial insolvency being experienced by some deposit money banks, are as a result of factors outside the purview of Treasury Single Account system.This study therefore recommended that government should re-invest the funds taken away from the financial institutions back into the economy in the form of capital expenditure in order to revamp the economy from its current state of recession.

Keywords: TSA, Economic growth, financial system, deposit money banks