Treasury Single Account: A Viable Tool for Repositioning Government Ministries, Departments and Agencies (MDAs) for Sustainable Development in Nigeria

Abstract

Treasury Single Account (TSA) policy in Nigeria is a government accounting system under which all government revenue receipts and income from Federal Government’s Ministries, Departments and Agencies (MDAs) are collected into one single account, usually maintained by the Central Bank of Nigeria and all payments done through this account as well in order to enhance accountability of government revenue; transparency and avoid misapplication of public funds. The implementation of TSA policy in Nigeria has generated mixed reactions on it effect on Federal Government’s Ministries, Departments and Agencies (MDAs). Based on the foregoing, the study assessed the effects of TSA on Federal Government’s Ministries, Departments and Agencies (MDAs). To achieve the objective of the study, primary and secondary sources of data were used. Questionnaires were used for the collection of primary data. A sample size of 150 was purposively drawn from the study population which comprises of Federal Government’s Ministries, Departments and Agencies (MDAs. Descriptive statistic (percentages) and Chi-square (X²) analytical technique were utilized in the analyses of data and test of hypothesis. The calculated Chi-square (X²) results for the hypothesis Ho1: Treasury Single Account does not enhance the repositioning of Federal Government’s Ministries, Departments and Agencies (MDAs) for sustainable development, shows; X²10.71 and the table X² value at 5% level of significance was 2.733.The results show that Treasury Single Account has enhanced the repositioning of Federal Government’s Ministries, Departments and Agencies (MDAs) for sustainable development. The study results also shows that TSA has enhanced regular monitoring of government cash balances, accountability and transparency, efficient use of government financial resources, probity, reduction of cost of borrowing and help to check corruption in Federal Government’s Ministries, Departments and Agencies (MDAs). Also the study shows that MDAs in Nigeria have not been able to adequately used TSA to enhance economic development in Nigeria among others. The study recommended among others that TSA should be embraced by all Government’s Ministries, Departments and Agencies (MDAs) at all level of governments; federal, states and local government councils in Nigeria and that MDAs in Nigeria should take advantages of TSA policy implementation to enhance economic development in Nigeria by keying into all aspects of the policy drive and urgently addressing all the shortcoming associated with the policy. The study concluded that TSA is a viable tool that enhanced repositioning of MDAs in Nigeria and as such it should be use to facilitate economic development in Nigeria.

Keywords: Treasury Single Account, Ministries, Departments and Agencies (MDAs) and Sustainable Development