Able 2020

TITLE PAGE
THE IMPLEMENTATION OF TREASURY SINGLE ACCOUNT AND ITS EFFECT ON
GOVERNMENT INSTITUTIONS A STUDY OF FEDERAL UNIVERSITY OF
TECHNOLOGY AKURE (FUTA)
FOLORUNSO Busayo Joshua
MATRIC NO: 150601055
PROJECT SUBMITTED TO THE DEPARTMENT OF ACCOUNTING, FACULTY OF
SOCIAL AND MANAGEMENT SCIENCES, ADEKUNLE AJASIN UNIVERSITY,
AKUNGBA-AKOKO, ONDO STATE, NIGERIA. IN PARTIAL FUFILMENT OF ONE
OF THE REQUIREMENTS FOR THE AWARD OF A BACHELOR OF SCIENCE,
DEGREE IN ACCOUNTING
JANUARY, 2020
i
DECLARATION
This is to declare that this project was carried out by Folorunso Busayo Joshua of the department
of Accounting, Adekunle Ajasin University Akungba Akoko under the supervision of Mr.,
Sunday Oloruntoba. Also the project is my original work and it has not been used for any degree
in any university.
-------------------------------------------- -----------------------
FOLORUNSO BUSAYO JOSHUA DATE
Student
ii
CERTIFICATION
This is to certify that this research work was carried out by FOLORUNSO BUSAYO
JOSHUA with matriculation number 150601055 with supervision in the department of
Accounting, Faculty of Social and Management Sciences, Adekunle Ajasin University, Akungba
Akoko, Ondo State, Nigeria.
………………………………….. ........................................
MR OLORUNTOBA S. R. DATE
Project Supervisor
……………………………............ ………………………...
DR (Mrs) IGBEKOYI O. E. DATE
Head of Department
iii
DEDICATION
I dedicate this research work to the Almighty God, the only source of knowledge and
wisdom who has been my father, refuge, helper, confidant and sustenance, also to my family and
everyone who supported both morally and financially throughout my stay in the citadel of learning.
iv
ACKNOWLEDGEMENTS
My determined effort to carry out this research work would have proven futile if not for
the mercy and grace of the Almighty God. I say a very big thank you to my heavenly father.
My profound appreciation goes to my wonderful supervisor, Mr Oloruntoba S. for his
support, guidance, care, understanding and thorough supervision which facilitated the successful
completion of this project. I pray that the God will continually cause his face to shine upon you
and your family in Jesus name. My intense appreciation also goes to my Head of Department, Dr
(Mrs) Igbekoyi and other wonderful lecturers in the Department of Accounting, Adekunle Ajasin
University, Akungba Akoko; Dr Oladiture E., Dr Agbaje W. H., Mr Olabisi, Mrs Gbemigun C.O,
Mr Adeusi A.S and Dr. Alade M.E. May God continue to bless you and your families.
Special appreciation goes to my Dad, Mr. Folorunso, words cannot express what you have
done. To my caring mum, Mrs. Modupe, I am grateful. I can’t but appreciate Mr. Bamisile, Mrs.
Bolarinwa, Mrs. Omoboja, Mrs. Sandat, Mrs. Akinrotogun, Mrs. Taiwo, and others, you are the
foundation I am very grateful, God bless you. I really want to appreciate these men that have been
there in the divine realm; Evang. Balogun, Prophet Idehai, Prophet Emmanuel, Prophet Palmer,
Prophetess Sanusi and Prophetess Uche. Now to my irreplaceable SCC family; SAB (the GGP),
my twin brother (David Palmer), Apostle K. Matthew, BMR, Kmerin, BV, K5, FA, Core, PM and
PhysyJOY, I owe you guys my life. The FST, SPD and Crucials I am very grateful
Finally, my appreciation goes to Ajibola Bukunmi, Barry, Mr. Abbey, FECAS, all
NUASITES, SCC AAUA Family, and W-MHR. I say a very big thanks to you all for your spirit
of love, accommodation, prayers, motivations, encouragement, impact and support throughout my
stay on campus. God bless you all.
v
TABLE OF CONTENTS
CONTENTS
TITLE PAGE ................................................................................................................................... i
DECLARATION ............................................................................................................................ ii
CERTIFICATION ......................................................................................................................... iii
DEDICATION ............................................................................................................................... iv
TABLE OF CONTENTS ............................................................................................................... vi
ABSTRACT.................................................................................................................................... x
CHAPTER ONE ............................................................................................................................. 1
INTRODUCTION .......................................................................................................................... 1
1.1 Background to Study ........................................................................................................... 1
1.2 Statement of Problem ....................................................................................................... 3
1.3 Research Questions .......................................................................................................... 4
1.4 Objective of the Study ...................................................................................................... 4
1.5 Research Hypotheses........................................................................................................ 5
1.6 Significance of Study ....................................................................................................... 5
1.7 Scope of Study ................................................................................................................ 6
1.8 Limitation of Study .......................................................................................................... 6
CHAPTER TWO ............................................................................................................................ 7
LITERATURE REVIEW ............................................................................................................... 7
vi
2.1 Introduction ...................................................................................................................... 7
2.2 Conceptual Review .......................................................................................................... 7
2.2.1 Concept of Treasury Single Account (TSA) .................................................................... 7
2.2.2 History of Treasury Single Account in Nigeria ............................................................... 8
2.2.3 Treasury Single Account Block for Leakages in Government Institutions in Nigeria .. 10
2.2.4 Transparency and Accountability in Government Institution ........................................ 11
2.2.5 Performance of Government Institutions ....................................................................... 12
2.2.6 TSA Implementation in Government Institution in Nigeria .......................................... 13
2.2.7 Reasons for the Adoption of Treasury Single Account in Public Sector ....................... 14
2.2.8 Treasury Single Account System in the Public Sector ................................................... 16
2.2.9 Benefits of Treasury Single Account ............................................................................. 19
2.2.10 Challenges and Problems of TSA .................................................................................. 21
2.2.11 An Illustration Of Revenue Circuit For A Taxpayer...................................................... 24
2.3 Theoretical Review ........................................................................................................ 27
2.3.1 Stakeholder Theory ........................................................................................................ 27
2.3.2 Public Finance Management Theory.............................................................................. 28
2.3.3 Modern Money Theory (MMT) ..................................................................................... 29
2.4 Empirical Review ........................................................................................................... 29
CHAPTER THREE ...................................................................................................................... 37
METHODOLOGY ....................................................................................................................... 37
vii
3.1 Introduction .................................................................................................................... 37
3.2 Research Design ............................................................................................................. 37
3.3 Population of the Study .................................................................................................. 37
3.4 Sample and Sampling Technique ................................................................................... 37
3.5 Sources of Data .............................................................................................................. 38
3.6 Validity and Reliability of the Instrument...................................................................... 38
3.7 Method of Data Analysis................................................................................................ 39
CHAPTER FOUR ......................................................................................................................... 41
DATA PRESENTATION, ANALYSIS AND INTERPRETATION .......................................... 41
4.1 Introduction .................................................................................................................... 41
4.2 Data Presentation and Interpretation .............................................................................. 41
4.2 Socio-demographic information collected includes gender, age distribution, marital
status, educational status and number of years in service. .................................................... 42
Table 4.3 TSA implementation and its effect on government institutions ............................ 44
Table 4.3.1 Contingency table ............................................................................................... 45
Table 4.3.2 Chi-Square (X2) .................................................................................................. 46
Table 4.4 Treasury single account blocks financial leakages in Government institutions. ... 47
viii
Table 4.5 Treasury single account promotes transparency and accountability in Government
institutions in Nigeria ............................................................................................................ 50
4.3 Discussion of Findings ................................................................................................... 53
CHAPTER FIVE .......................................................................................................................... 57
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS ......................... 57
5.1 Introduction .................................................................................................................... 57
5.2 Summary of Findings ..................................................................................................... 57
5.3 Conclusion...................................................................................................................... 57
5.4 Recommendations .......................................................................................................... 58
5.5 Suggestions for Further Studies ..................................................................................... 59
REFERENCES ............................................................................................................................. 60
APPENDIX ................................................................................................................................... 65
ix
ABSTRACT
The study examines the implementation of treasury single account (TSA) and its effect on
government institution a study of federal university of technology Akure (FUTA). The treasury
single account is a financial policy aimed at consolidating government funds for proper
accountability. The specific objectives of the study are to find out the impact of treasury single
account implementation on government institutions performance, the extent to which the TSA
policy has been able to block leakages in government institutions and to determine to what extent
has TSA been able to promote transparency and accountability in government institutions. The
study employed survey research design with the use of primary data. The population of this study
comprises the members of staff of federal university of technology Akure while the target
population is the bursary and audit department, there are eighty-six (86) members of bursary and
audit department in Federal University of Technology Akure. They were chosen because they are
the units that handle receipts and payments of funds and are deemed to be technically inclined in
TSA policy. The data were analyze using chi-square. The study revealed that there is positive and
significant relationship between Treasury Single Account (TSA) implementation and Government
institutions performance in Nigeria. This implies that Treasury Single Account implementation
increases performance of Government institutions in Nigeria. The study recommends that federal
government should secure as soon as possible the appropriate legislative support to facilitate the
relevant regulatory environment which will drive the effective implementation of the TSA in the
states and local governments in order to promote accountability and transparency at all levels of
government.
x
CHAPTER ONE
INTRODUCTION
1.1 Background to Study

According to Okwe, Chijioke, Temiloluwa and David (2015), “Treasury Single Account is
a public accounting system under which all government revenue, receipts and income are collected
into one single account, usually maintains by the country’s Central Bank and all payments done
through this account as well”. The primary aim of TSA is to avoid recklessness and
misappropriation of government resources. Also, it is aimed at ensuring transparency and
accountability in government’s fund management. It is believed that TSA will enhance judicious
use of funds when all government money are in one place rather than deposited with various
commercial banks. Revenue collections and payments will be better reconciled and appropriated
through TSA (Adeolu, 2015).
In different parts of the word, countries are faced with challenges of financial management
due to limited government resources. It is important that government comes up with more effective
and judicious ways of managing its resources. Public funds are sourced mainly through taxes and
this is used in resources allocation for various government projects. That said, it is imperative to
ensure public expenditures are channeled to future economic growth plans (Adeolu, 2015).
Effective management of public resources is vital to fiscal discipline maintenance and it is geared
towards Nigeria’s government structural reform initiative. This will reduce constraints on budget
because it enhances value for money through balanced spending (Okwe, et al., 2015).
Nigeria government under the leadership of President Goodluck Jonathan in 2012 came up
with a policy know as Treasury Single Account (TSA). It was not until February 2015 that the
initiative was adopted by President Muhammadu Buhari to ensure all government revenues are
consolidated. Subsequently, the Central Bank of Nigeria (CBN) gave a directive that all
1
government cash inflow be deposited a central account with the CBN using REMITA, an online
software platform (Okwe, et al., 2015). The Federal Government of Nigeria introduced the TSA
to ensure cash inflows from all its agencies and departments are domiciled in a single account at
the CBN for proper monitoring and management (CBN, 2015). An accounting system in which
all government receipts, income and revenues are domiciled in a single account at the Central Bank
where the Central Bank authorizes all payment is known as The Treasury Single Account
(Adeolu, 2015).
TSA is a government bank account unified to give concise and consolidated outlook of
government income and spending. This is in line with unity of cash principle. It is aimed at
enhancing prudence, transparency, accountability and proper management of all government
revenues. It is important to note that there are diverse challenges associated with keeping
government money in different commercial banks which ranges from misappropriation to
embezzlement (Pattanayak & Fainboin, 2015). The Nigerian Government, as a test case ran a pilot
scheme in about 217 of its ministries, agencies and departments in the year 2012 to check the
efficiency of TSA. It was observed that the government was able to save about N500 billion in
trivial and unaccounted spending through the scheme. The success recorded in the test run
prompted the government to give directive for full implementation of the scheme in all its
institutions (Okwe, et al., 2015).
As indicated above, the TSA has many benefits in terms of managing government
revenues. However, it is not without its shortcomings in the fact that implementing TSA in a
developing economy like Nigeria’s can affect certain government institution in meeting their day
to day financial obligations. Moreover, the bureaucracy in federalism as practised in Nigeria is
also a barrier to smooth implementation of TSA (Pattanayak & Fainboin, 2015). It is important to
2
look at government institutions based on their mode of operation. For instance, universities system
of administration and management may find it difficult to adapt to TSA operation because it is not
a profit-oriented government establishment. So, meeting their core costs of operations through
TSA is very likely to hinder effective service delivery (Faborode, 2015).
1.2 Statement of Problem

The Federal Government gave directive for the remittance of all revenues from its agency
to the TSA located with the Central Bank of Nigeria. This idea has been welcomed by many
because of it is believed to tackle persistent corruption in the public service and deliver effective
management of government resources (Yusuf, 2016). The directive by the government has only
been fully honored by 600 out of 900 ministries, departments and agencies and others are yet to
fully comply with it. It was noted that the directive is mandatory for all MDAs (Jegede, 2015). It
was observed that the most MDAs are against the idea of a TSA because it is believed that it will
limit their access to funds. Some of the MDAs are used to keeping their monies with different
commercial banks where interests are accrued. With the TSA however, there has to be convincing
evidences of what money is meant for before they are released (Jegede, 2015).
One of the major effects of TSA implementation in Nigeria is its effects on commercial
banks. According to a study carried out by Kanu (2016), it was observed that the liquidity base of
many commercial banks have dropped significantly. This has caused many of the banks to
downsize their work force in other to stay in operation (Kanu, 2016). Some schools of thoughts
believe that TSA implementation does not have any significant impact on the economy of Nigeria,
others are of the opinion that its implementation will enhance transparency and accountability by
shutting financial leakages in the public sectors. Also, it is believed that it will help the government
avoid wastage of its financial resources when it is fully implemented is all MDAs. That said, the
3
government need very strong political will and sincere intention to succeed in its mission (Yusuf,
2016; Ahmed, 2016; Isaac, 2015).
It was revealed from the empirical literature(s) that TSA is a field where investigation is
ongoing and many authors had argued that the TSA adoption has led to great performance in the
financial system of the economy while others argued that the adoption of TSA has no significant
effect on performance of federal government MDAs and there are fewer and scanty literatures to
buttress the issue. This result makes the empirical evidences on effect of TSA on performance of
MDAs inconclusive and inconsistent. But more importantly, no study has been done on the
implementation of TSA and its effect on government institutions. In view of this, this study will
examine the implementation of Treasury Single Account in Nigeria institutions and its impacts on
performance.
1.3 Research Questions

The study seeks to provide answers to the following questions;
i. What is the effect of Treasury Single Account (TSA) implementation on Government
institutions performance in Nigeria?
ii. To what extent does Treasury Single Account (TSA) block financial leakages in
Government institutions in Nigeria?
iii. To what extent does Treasury Single Account (TSA) promote transparency and
accountability in Government institutions in Nigeria?
1.4 Objective of the Study

The broad objective of this study is to investigate the implementation of Treasury Single
Account (TSA) and its effect on Government Institution: a study of the Federal University of
Technology, Akure. The specific objectives are to;
4
i. investigate the effect of Treasury Single Account (TSA) implementation on Government
institutions performance in Nigeria;
ii. examine the extent to which Treasury Single Account (TSA) blocks financial leakages in
Government institutions in Nigeria; and
iii. determine the extent to which Treasury Single Account (TSA) promotes transparency and
accountability in Government institutions in Nigeria.
1.5 Research Hypotheses

The following research hypotheses will be stated and formulated in the null form;
i. There is no effect of Treasury Single Account (TSA) implementation on Government
institutions performance in Nigeria.
ii. Treasury Single Account (TSA) does not block financial leakages in Government
institutions in Nigeria.
iii. Treasury Single Account (TSA) does not promote transparency and accountability in
Government institutions in Nigeria.
1.6 Significance of Study

In this study, the researcher set out the prospects and challenges of the implementation of
Treasury Single Account in government institutions. The results from this study will educate the
general public on the benefits of Treasury Single Account to Nigeria economy. It will also educate
on how its full implementation in will enhance accountability in the public sector. This research
will provide new explanation to the topic and serve as a resource base to other scholars and
researchers interested in carrying out further work in this field. More so, the findings of this study
will be of most importance to policy makers, government and potential researchers especially as
it relates to addressing treasury single account in the Nigerian public sector through improved and
well-motivated workforce and strategic employment generation capacity. The study will assist the
5
Government to put more effort in ensuring a successful implementation of the program to achieve
their objective and guide against failures, lapses, sabotages and other likely challenges.
1.7 Scope of Study

The study takes holistic view of TSA implementation as a financial policy and its effect on
government institutions. The study will focus on The Federal University of Technology, Akure
and cover a period from 2012 to 2018. The year 2012 was used as a base period because it was the
year Treasury Single Account was introduced into Nigerian public sector.
1.8 Limitation of Study

Due to the fact that no study is perfect, some of the limitations to the study were; This study
is restricted to Federal University, Technology Akure, Ondo state, The respondents’ reluctancy in
filling of questionnaire, recovery of questionnaire, smallness of the sample size, and time and
financial constraints.
6
CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction
The chapter presents different studies that have been done on similar researches, scholars’
perspectives on related subjects, various arguments for and against the implementation of treasury
single account and its impact on government institutions. The chapter is divided into three sections;
conceptual review on the subject matter, theoretical review and empirical review on treasury single
account and its impact on government institution.
2.2 Conceptual Review

2.2.1 Concept of Treasury Single Account (TSA)
According to Onyekpere (2015), ‘treasury single account is a unified structure of
government bank accounts 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’. The TSA, an initiative of the Federal Government of Nigeria was set up to ensure that
government revenues form ministries, departments and agencies are deposited into a single
account at the Central Bank of Nigeria (CBN). This is aimed at reducing the complications around
multiple bank accounts operated by MDAs in the past. Also, it is believed that TSA will enhance
transparency and accountability in all government MDAs (Kanu, 2016).
According to Chukwu (2015), ‘a treasury single account (TSA) is a network of subsidiary
accounts all linked to a main account such that, transactions are effected in the subsidiary accounts
but closing balances on these subsidiary accounts are transferred to the main account, at the end
of each business day’. Treasury Single Account defines an accounting system where government
income, revenues and receipts are paid into one unified account held with the country’s apex bank
7
and the government caries out all its transactions through such account. The idea is believed to
enhance government’s revenue consolidation and effective financial transactions (Yusuf, 2015).
TSA is viewed as a unification of all government funds in a single account for concise
financial outlook. Daily consolidation and clearance of cash vital is to TSA effectiveness. This is
easier when all funds are held in a single account that when scattered at various commercial banks.
TSA contains all government monies as well as money held in trust, votes and extra-budgetary
funds. TSA must be robust enough to clarify various accounts incorporated into one single account
for effective revenue management (Oyedele, 2015).
TSA is seen as an effective and proven revenue collection and payment system for the
government due the vales it has added to money management in ministries, departments and
agencies. It has refocused government attention into one place rather than having to manage its
funds at different commercial banks (Dener, 2014). Government day to day income and payments
are carried from a single account know as Treasury Single Account (TSA) for better monitoring
and consolidation of its revenues. This is also designed to enhance cash management and reduce
transaction costs levied against government funds in commercial banks (Pattanayak and Fainboim,
2011).
2.2.2 History of Treasury Single Account in Nigeria

It is believed that keeping government fund with different commercial banks is not an
effective way to manage its funds. It was therefore recommended that government funds be kept
in a single account. This is to enable authorized government department to manage its cash, ensure
funds are available to meet core obligations, create a robust debt management plan and effectively
invest idle cash.
8
Treasury Single Account, as a government accounting tool is so structured to enhance
accountability in all public transactions, ameliorate transparency and to address and eradicate
wrong usage of public funds. Even before idea of implementing this financial tool TSA, the 1999
constitution of the federal republic of Nigeria has given a picture of it in terms of how the
government revenue should look like in section 80 (1) which states thus “all revenues or other
monies raised or received by the Federal (not being revenue or other money payable under the
Constitution or any Act of National Assembly into any other public fund of the Federation
established for a specific purpose) shall be paid into and form one Consolidated Revenue Fund of
the Federation” .
The treasury single account can be traced back to 1954 Lyttleton constitution in which
federal system of government was fully established to be practiced therefore obliging the federal
government to keep a single account for its earnings. However, the provision of the 1954
constitution is being violated by creating multiple accounts (Tari et al, 2015). They stated further
that the multiple accounts maintained by the federal government between 1964 to 2004
contradicted the lay down principles of revenue generation and allocation in a Federal state. This
calls for a probe on the integrity of the federal government in keeping the orders as stated in the
extant legislative rules in Nigeria. Tari et al(2015) stated that, “though the legitimacy of the TSA
was enshrined in Oliver Lyttleton 1954 Constitution, the opening of other accounts started during
General Yakubu Gowon’s regime in order to prosecute the war” He said that the federation
accounts on the grounds of reconstruction, amortizing debts, joint revenue cash calls and so on
was mushroomed in Gowon’s regime . He emphasized that General Ibrahim Babagida and General
Abacha regimes worsened the operation of multiple accounts.
9
The government of President Goodluck Jonathan ran a pilot scheme for a single treasury
account in 2012 using 217 MDAs (Kanu, 2015). At the 235th Monetary Policy Committee (MPC)
meeting held in November 2013, the CBN, in a communiqué, stated that TSA is an appropriate
tool for consolidating and managing government cash resources (Yusuf 2015). The Treasury
Single Account is also part of the Public Finance Management reforms which falls under pillar 3
of the National Strategy for Public Service Reforms towards vision 2020 (Eme, 2015). It was the
success recorded in the 2012 pilot scheme that motivated the government to give directive for full
implementation among all MDAs by February, 2015. The government was said to have saved
N500 billion Naira from the pilot scheme (Kanu, 2015). However, the February, 2015 target was
not realized by the former President due to intense pressure from chief executives of banks
considering the negative effects it would bring to the sector (Eme, 2015). on 7th of August, 2015
Head of Service of the Federation issued a circular mandating all MDAs to operate under the
Treasury Single Account as directed by President Muhamadu Buhari. From that month all MDAs
have tuned to the operation of TSA.
2.2.3 Treasury Single Account Block for Leakages in Government Institutions in

Nigeria
Treasury Single Account (TSA) policy was introduced to block financial leakages, promote
transparency and prevent mismanagement of government's revenue, unifies all government
accounts, enabling it prevent revenue loss and mismanagement by revenue-generating agencies
(Adeolu, 2016). Firstly, it’s a unified structure of government bank accounts enabling
consolidation and optimal utilization of government cash resources. Through this bank account or
set of linked bank accounts, the government transacts all its receipts and payments and gets a
consolidated view of its cash position at any given time (Adeolu, 2016). The intention of
implementing this account was for the benefits of Federation ruled by democracy. In 2012, it was
10
on record that government ran a pilot scheme for a single account using 217 ministries, department
and agencies as a test case. The exercise saved Nigeria about N500 billion in frivolous spending.
The success of the pilot motivated the government to implement fully TSA, leading to the
directives to banks to provide the technology platform that will help to accommodate the TSA as
it facilitates timely and more complete accounting reports (Gwarzo, 2016).
Section 80 (1) of the 1999 Constitution as amended states that "all revenue or other money
raised or received by the Federation (not being revenue or other money payable under this
Constitution or any Act of the National Assembly into any other public fund of the Federation
established for a specific purpose) shall be paid into and form one Consolidated Revenue Fund of
the Federation”. Successive governments have continued to operate multiple accounts for the
collection and spending of revenue, thereby disregarding the provision of the constitution which
require the remittance of all the revenue into a single account. Kanu (2016) views TSA as one of
the financial policies implemented by the federal government of Nigeria to integrate all revenues
and treasuries from all ministries, departments and agencies and extra ministerial departments in
the country where all the collections are paid into money depositing banks trailed to a single
account at the apex bank of the nation (CBN). Thus, the introduction of TSA was expected to
reduce the multiplicity of bank accounts previously maintained by various MDAs, thus, ensuring
transparency and accountability in all organs of the government.
2.2.4 Transparency and Accountability in Government Institution

Transparency is a state of not conceding any material fact about a subject matter making
available information accessible as much as possible. It is the extent to which financial data of an
entity can be access by an investor. This information may include share price.
(http//Investopedia.com).
11
For the actual costs and the benefits accruing to government activities, and the status of the
financial position to be assessed, there’s need for timely and relevant information to be made
available and institutionally arranged. (http//worldbank.org). Transparency enables stakeholders
(the public) to contribute meaningful ideas that will aid government financial plans and projects.
Accountability is a legal and reporting framework by which a person is obliged to answer for the
responsibilities assigned to him by providing a detailed explanation of stewardship of how public
money has been used. It’s made up of two components; rendering of account and holding to
account. (ICAN Public Sector Accounting study text, 2014). Accountability and Transparency are
two inseparable concepts and are elements of good governance. Transparency, if consistent
promotes accountability (http//www.intosai.com). The treasury single account is a public financial
management tools that has promoted Transparency and Accountability in the public sector. The
test of its effectiveness that was conducted on 217 MDAs in 2012 saved the country of about N500
billions of unaccounted spending. In the study of Igbekoyi and Agbaje (2017), it was deduced that
the adoption of TSA has a significant positive effect on transparency in public sector.
2.2.5 Performance of Government Institutions

Performance is an outcome of the activities of an organization. These include; current
status of specific business, project or process. It can be measured from set of quantifiable metrics
which is gotten from different sources. (http//skilmaker.edu.au). Performance in the public sector
is best measured by analyzing the flow income and expenditure of an organization. TSA was
introduced in 2012 and formally adopted in 2015 under the regime of President Mohammed Buhari
one of the aims to improve the performance of public organization. The study carried out by
Sulaimon (2017) on effect of TSA on some selected parastatal has shown that TSA has a
commendable effect on the performance of government institutions.
12
2.2.6 TSA Implementation in Government Institution in Nigeria
The implementation of the Treasury Single Account by the Federal Government through
its independent revenue e-collection initiative, hopes to automate direct revenue collection from
the existing MDAs (Tayo, 2015). All revenues collected would be paid directly into the
Consolidated Revenue Fund (CRF) account at the CBN through a designed platform (Remita e-
collection platform) and several other electronic payment platforms or channels that may be
introduced by the government from one to time. Infact, TSA is seen as a structure that unifies
government bank accounts that gives a amalgamated or integrated view of government’s cash
resources (Yusuf & Chiejina, 2015). The institutionalization of TSA helps the money depositing
banks over their proliferated and chain of activities which they perform. It includes: disbursements
of funds and collection of taxes/levies as well as remuneration of civil servants. Some substantive
government’s agencies maintain proliferated bank accounts in the collection and expensing of
revenues, thereby disregarding the provision of the constitution which requires the remittance of
all the revenue into one account.
The CBN kept and maintained a Consolidated Revenue Account to receive all revenue of
the government from all sources as well make payments through this account. All MDAs and extra
ministerial departments are required to remit money collected in this account through the Deposit
Money Banks (DMBs) who are the collection agents. Although, DMBs will still keep revenues
account for MDAs and extra ministerial departments but all the treasuries collected by the money
depositing banks shall be paid to the CRF maintained with the CBN daily. Also, ministries,
departments and agencies and extra ministerial departments cash balance with the money deposit
banks will have nil balance daily by remitting all the treasuries collected to the TSA. This as a
result restricts money depositing banks from having access to multiple deposits resulting from
multiple accounts (Kanu, 2016). International Monetary Fund (2010) defined TSA as a unified
13
structure of government bank account that gives a consolidated view of government cash
resources. Based on the principle of unity of cash and unity of treasury, TSA is a bank account or
a set of linked accounts through which the government transacts all its receipts and payments.
Before the commencement of TSA, there was alleged fears that the implementation of TSA
might disrupt operations of government agencies especially agencies like Nigerian Maritime
Administration and Safety Agency (NIMASA), Nigerian Ports Authority (NPA) with huge daily
operations. But stakeholders said it would rather promote accountability and responsible
operations and make the government agencies to be more proactive and prudent because it would
no longer be business as usual as their spending will now be backed by fiscal allocation (Sun
Editorial, 2015). However, available evidence suggests a contrary view as the operations almost
all government agencies has come to hat as result of the adoption and implementation of TSA.
This is in line with earlier position of Adefemi (2015) who argued that, the implementation of the
policy has the capacity of crippling Ministries, Departments and Agencies (MDAs) as a result of
bureaucracy in assessing needed fund for the smooth running of MDAs when the need arises. TSA
as lead to loss of job especial in the commercial banks that hitherto rely on government accounts
for huge cash deposit. Today, the cash flow in these commercial banks has drastically reduced as
a result of the Presidential directive on implementation of TSA in all federal government
establishments.
2.2.7 Reasons for the Adoption of Treasury Single Account in Public Sector
Until the introduction of the TSA, the country faced numerous challenges with
management of Public Finances that affect government efficiency and effectiveness in service
delivery, transparency and accountability. Some of these challenges were:
Loss of Control on the Number of government Bank Accounts
14
MDAs are required under FR 701 to get the approval of the Accountant-General of the
Federation (AGF) for all their banking relationship. In addition, each MDA is required by
regulation to maintain four bank accounts, one each for revenue, personnel costs, overhead costs
and capital. However, many MDAs failed to comply, hence the number of bank accounts became
over bloated and monitoring the accounts became a herculean task for the OAGF. A survey of the
number of such accounts with both the Central Bank of Nigeria (CBN) and Deposit Money Banks
(DMBs) carried out by the OAGF in 2010 puts the number of accounts at over 10,000 With such
a large number, government could not have timely consolidated information of cash position
necessary for efficient cash management in the country.
Idle Cash in MDAs’ Accounts While the CRF Account is Perpetually Overdrawn
Prior to the reforms, government financed its personnel and overhead costs monthly in
advance while capital projects were funded quarterly in advance but often the funds remained
underutilized for the periods. This leaves the Consolidated Revenue Fund (CRF) Account from
which MDAs Accounts were funded perpetually overdrawn as Ways and Means Advance granted
by CBN in line with S.38 (2) of their Act. Accordingly, government incurs cost of borrowing on
the overdrawn balance while the DMBs that are keeping the MDAs’ idle funds do not remunerate
them but buy government treasury bills and bonds to earn interest income. The level of ways and
means granted by CBN to meet cash flow shortfalls has grown over the years reaching N342 billion
in 2014.
Maintenance of Several Extra Budgetary Funds
There exist a number of funds (dedicated accounts) outside the Consolidated Revenue Fund
(CRF) with huge balances while government suffers charges on the CRF overdrawn balance with
the CBN. If the extra budgetary funds were linked to the CRF, it would have eliminated the ways
15
and means charges, as the net position would have been positive. Besides, the extra budgetary
funds would have been an easy source for short-term borrowing instead of treasury
bills/certificates.
Non-Remittance of Independent Revenues by MDAs
A number of MDAs fail to remit their revenues into the CRF in line with S.80 of the
Constitution and spend the funds without appropriation.
2.2.8 Treasury Single Account System in the Public Sector

Issues related to cash management should not be confused with issues related to the
distribution of responsibilities for accounting control and administration of the payment system.
A TSA can operate with both centralized and decentralized (deconcentrated) transaction
processing and accounting control systems (Leinert & Ian, 2009); however, the feasibility of
implementation depends on the level of technological development of the banking sector and the
government, including a GIFMIS and a reliable communications network. Poor banking and
technological infrastructure in some developing countries are sometimes obstacles to combining
consolidation of cash balances with decentralization of payment processing. In countries with an
underdeveloped banking infrastructure, daily clearing of accounts with various banks could be
more difficult than daily settlement within a set of accounts at the central bank. Maintaining a large
number of accounts at commercial banks could also hinder the implementation of appropriate
clearing and consolidation procedures. The TSA system adopts two transaction models: centralize
and decentralize transaction processing.
Centralized Transaction Processing
This implies a concentration of authority at the treasury to process transactions, and access
and operates the TSA. In this case, the treasury provides payment services for spending agencies
and has the exclusive authority to operate the TSA, including its regional treasury subaccounts.
16
The budget institutions submit their payment requests to the centralized authority/treasury before
making payments. Under this model, requests for payments are prepared by individual budget
agencies and sent to a central treasury payment unit for control and execution. The central payment
unit manages the float of outstanding invoices. This model may create a useful synergy between
cash management on the one hand, and expenditure control and transaction accounting on the other
hand. However, the centralization of expenditure transaction processing can also lead to
inefficiencies, including high transaction costs, and potential for corruption in countries where the
control systems are inadequate. Another issue that needs to be considered is whether the
authorization of commitments is centralized or decentralized to individual spending agencies. In
the latter case, if the commitment control and payment systems are not well integrated, payment
arrears may occur. Although in this model the payment and accounting functions are centralized,
individual spending agencies are treated as distinct accounting entities through a treasury ledger
system. Therefore, information on the individual ledger accounts of the spending agencies
(including information on their respective transactions) is maintained and controlled internally by
the treasury and thus not visible to the banking system. Under this model, only the treasury central
unit deals with the commercial banks, making payments from the TSA and receiving collected
revenues into the TSA.
Decentralized Payment and Accounting System
In this case, each budget institution processes its own transactions during budget execution
and directly operates the respective bank account under a TSA system. Such a transaction
processing model could be associated with either the centralized or the distributed TSA structure.
Combining the options of the decentralized TSA structure and the decentralized transaction
processing model would, however, require an efficient and reliable communication network and
17
interbank settlement system for netting of balances of several transaction accounts with the TSA
main account. Under this model, individual budget agencies process and make payments directly
to suppliers and account for these transactions through a TSA system. Modern technology allows
electronic links between spending agencies, the central bank, the commercial banks, and the
treasury. The treasury sets the cash limits monthly or quarterly for the total. An amount of
disbursements to be made by a particular budget agency, but does not control individual
transactions. The authority to make commitments is granted to the budget agencies on a periodic
basis (generally each quarter) by the budget office, and cash limits are set by the treasury, often on
a monthly basis. This is a model of centralized cash control, but decentralized responsibility for
commitments, payments, and accounting. This model makes the spending agency responsible for
internal control and management, while keeping central control of cash through the TSA.
An example of a decentralized model is one that combines TSA sub-accounts for line
ministries and zero-balance accounts for individual spending agencies within each line ministry.
Under this variant, the ministries/departments maintain sub-accounts of the TSA at the central
bank. Various sub-accounts may be set up for different institutional types and each may have
different operating rules. Cash limits should be set for each spending entity. On the other hand,
individual spending agencies within a parent ministry/department have zero-balance transaction
accounts authorized by the treasury, generally in commercial banks, which are automatically swept
at the end of each day (if the banking sector is able to do this). Cash is transferred as specific
payments are approved (or daily credit limits negotiated). At the end of the day, the central bank
records the cash to the appropriate major institution subaccount in the central bank so that a balance
of all government accounts incorporating the TSA can be seen.
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2.2.9 Benefits of Treasury Single Account
The TSA provides a number of other benefits and thereby enhances the overall
effectiveness of a public financial management (PFM) system. The establishment of a TSA should,
therefore, receive priority in any PFM reform agenda. According to the directive, this measure is
specifically to promote transparency and facilitate compliance with sections 80 and 162 of the
1999 Constitution. In a statement by Laolu (2015), the Senior Special Assistant to the Vice
President on Media and Publicity, all receipts due to the Federal Government or any of its agencies
must be paid into TSA or designated accounts maintained and operated in the Central Bank of
Nigeria (CBN), except otherwise expressly approved. The presidential directive, in the view of
analysts, would end the previous public accounting situation of several fragmented accounts for
government revenues, incomes and receipts, which in the recent past has meant the loss or leakages
of legitimate income meant for the federation account. President Buhari had earlier promised state
governors at the inaugural meeting of the National Economic Council (NEC), in June, that all
revenues prescribed for lodgment into the federation account will be treated as such under his
watch and that he will ensure strict compliance with all relevant laws on accounting, allocation
and disbursement.
Allows complete and timely information on government cash resources
In countries with advanced payment and settlement systems and an Integrated Financial
Management Information System (IFMIS) with adequate interfaces with the banking system, this
information will be available in real time. As a minimum, complete updated balances should be
available daily.
Improves Appropriation Control
The TSA ensures that the MoF has full control over budget allocations, and strengthens the
authority of the budget appropriation. When separate bank accounts are maintained, the result is
19
often a fragmented system, where funds provided for budgetary appropriations are augmented by
additional cash resources that become available through various creative, often extra-budgetary,
measures.
Improves Operational Control During Budget Execution
When the treasury has full information about cash resources, it can plan and implement
budget execution in an efficient, transparent, and reliable manner. The existence of uncertainty
regarding whether the treasury will have sufficient funds to finance programmed expenditures may
lead to sub-optimal behavior by budget entities, such as exaggerating their estimates for cash needs
or channeling expenditures through off-budget arrangements.
Facilitates Efficient Payment Mechanisms
TSA ensures that there is no complexity as regards location of government funds and its
volume, and makes it possible to monitor payment mechanisms precisely. It can result in
substantially lower transaction costs because of economies of scale in processing payments. The
establishment of a TSA is usually combined with elimination of the floating the banking and the
payment systems, and the introduction of transparent fee and penalty structures for payment
services. Many governments have achieved substantial reductions in their real cost of banking
services by introducing a TSA.
Improves Bank Reconciliation and Quality of Fiscal Data
A TSA allows for effective reconciliation between the government accounting systems and
cash flow statements from the banking system. This reduces the risk of errors in reconciliation
processes, and improves the timeliness and quality of the fiscal accounts.
Lowers Liquidity Reserve Needs
20
A TSA reduces the volatility of cash fows through the treasury, thus allowing it to maintain
a lower cash reserve to meet unexpected fiscal volatility.
Enables Efficient Cash Management
A TSA facilitates regular monitoring of government cash balances. It also enables higher
quality cash outturn analysis to be undertaken (e.g., identifying causal factors of variances and
distinguishing causal factors from random variations in cash balances).
Reduces Bank Fees and Transaction Costs
Reducing the number of bank accounts results in lower administrative cost for the
government for maintaining these accounts, including the cost associated with bank reconciliation,
and reduced banking fees.
2.2.10 Challenges and Problems of TSA

The TSA provides a number of other problems and despite the fact that, it enhances the
overall effectiveness of a financial management system. The establishment of a TSA should,
therefore, receive priority in any Government reform agenda. According to the directive, this
measure is specifically to promote transparency and facilitate compliance with sections 80 and 162
of the 1999 Constitution. In a statement by Adeolu (2015), former Senior Special Assistant to the
Vice President on Media and Publicity, all receipts due to the Federal Government or any of its
agencies must be paid into TSA or designated accounts maintained and operated in the Central
Bank of Nigeria (CBN), except otherwise expressly approved. The presidential directive, in the
view of analysts, would end the previous public accounting situation of several fragmented
accounts for government revenues, incomes and receipts, which in the recent past has meant the
loss or leakages of legitimate income meant for the federation account. President Buhari had earlier
promised state governors at the inaugural meeting of the National Economic Council (NEC), in
June, that all revenues prescribed for lodgment into the federation account will be treated as such
21
under his watch and that he will ensure strict compliance with all relevant laws on accounting,
allocation and disbursement. Since then the presidency has worked with relevant agencies of the
federal government to evolve this policy directive. This directive applies to fully funded organs of
government like the Ministries, Departments, Agencies and Foreign Missions, as well as the
partially funded ones, like Teaching Hospitals, Medical Centres, Federal Tertiary Institutions, etc.
Agencies like the Central Bank of Nigeria, Securities and Exchange Commission, Corporate
Affairs Commission, Nigeria Ports Authority, Nigeria Communications Commission, Federal
Airports Authority of Nigeria, Nigeria Civil Aviation Authority, Nigerian Maritime
Administration and Safety Agency, Nigeria Deposit Insurance Corporation, Nigeria Shippers
Council, Nigeria National Petroleum Corporation, Federal Inland Revenue Service, Nigeria
Customs Service, Mining, Minerals and Sustainable Development, Department of Petroleum
Resources are also affected. For any agency that is fully or partially self-funding, Sub-Accounts
linked to TSA are to be maintained at CBN and the accounting system will be configured to allow
them access to funds based on their approved budgetary provisions.
In November 2013, The Central Bank of Nigeria (CBN) called for an urgent
implementation of the Treasury Single Account (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
governments’ 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 in oil revenue
has left capital inflows as the only source of external reserves accretions” (CBN, 2014). It also
22
expressed concern that the federal government’s debt had also risen phenomenally along with its
deposits at the deposit money banks. This, it said, showed the federal government as a net creditor
to the system. “This underscores the urgent need for the immediate implementation of the Treasury
Single Account. The continued delay in returning government accounts to the Central Bank is
adding to the huge cost of government debt due to poor cash flow management,” (CBN, 2014) the
MPC statement added.
The Office of the Accountant -General of the Federation (OAGF) directed all Ministries,
Departments and Agencies (MDAs) of the Federal Government yet to comply with the Treasury
Single Account (TSA) regime domiciled at the Central Bank of Nigeria (CBN) to embrace the
policy not later than 15th September 2015. By implication, the MDAs were directed to close all
the revenue accounts they maintain in different Banks in the country and transfer the proceeds to
the TSA.
This no doubt was a move to actualize the promise by the then federal government through
the former Coordinating Minister of the Economy and Minister of Finance, Dr. Okonjo- Iweala in
October, 2015 to block avenues of revenue leakages to shore up government revenue in the face
of dwindling earnings due to falling oil prices.
23
2.2.11 An Illustration Of Revenue Circuit For A Taxpayer
Payment Disbursement
In the IMF working paper on TSA, Pattanayak and Fainboim (2011) stated that the main
objectives of a disbursement system are to pay government's obligation in a timely and cost-
effective manner, and to reduce opportunities for fraud and theft.
Manual or Semi-Automated Treasury Systems
This is peculiar to developing economies. Many developing countries like Angola, Burkina
faso, Nigeria, have very basic financial management systems and communication framework,
together with a manual or semi-automated (and often not integrated) treasury system and limited
communication capabilities. In such countries, payment requests often go through regional
treasury offices in states and are submitted for payment and settlement against the TSA. This
results in slow payment processes.
24
A Computerized Treasury System
This is an advanced communication infrastructure which allows electronic fund transfers
from the TSA to the recipient’s account, eliminating payment delays and idle balances and thereby
reducing operational risk. One of the aims of the treasury is to eliminate any delay in payments.
Good international standard practice has been to automate the payment processes, and adopt an
electronic payment system, with direct payments to the bank account of the beneficiary. Many
governments offer direct deposits (of salaries, pensions, etc.) to employees’ and pensioners’
accounts. This is efficient and less prone to fraud than other options, such as payments in cash or
by cheque.
Payment by Cheques
This advantageous, but has some demerits. Cheque provides a paper trail. However, the
speed of disbursements by payers is slow down, due to time delays between the issuance,
encashment and it's clearing. There is also a high incidence of fraud related to such transactions.
Writing and delivering of cheques may be costly and can introduce errors, creating
the need for a separate reconciliation process, and affecting the effectiveness of the cash
management system. Cheques can also be stolen or altered. This does not mean that electronic
payment systems are not potential areas for fraud and do not require fraud prevention measures
such as sound internal controls, passwords, restricted access, and restricted authorization to prevent
access to fund transfer initiation systems. Nigeria however has adopted the practice of making
large or important payments through direct bank transfer (to the beneficiaries’ accounts) by the
treasury, whereas smaller payments are handled by cheques issued on zero-balance accounts in
commercial banks, where they are settled and reconciled against the TSA. The method of direct
bank transfer is often also used for payment of salaries and pensions. In such cases, the treasury
25
agrees that a bank/financial institution deposit the funds directly into the bank accounts of an
approved list of public employees (based on the payroll) and the pensioners (Pattanayak &
Fainboim, 2011).
Illustration of a Centralised Payments Through ZBAs
In a decentralized system, the spending agencies verify the purchase orders and directly
submit them to the commercial banks for payments which is to be made from the ZBAs, it's
diagrammatically explained below. Even though in this case the control of individual payment
transactions is decentralized, the centralized cash control is enforced through total cash
disbursement limits set by the treasury/MOF on each of these ZBAs. These limits are made known
to both the respective commercial banks and the payment controllers in spending agencies.
26
Illustration of a Decentralised Payment Through ZBAs
2.3 Theoretical Review

A number of different theories of socioeconomic accounting were borrowed to form sound
foundation to substantiate implementation of Treasury Single Account and its impacts on
government institutions include:
2.3.1 Stakeholder Theory

This study is anchored on the stakeholder theory. The stakeholder theory was popularized by
Richard Edward Freeman in 1970. The main idea behind Freeman's Stakeholder Approach, was
to try to build a framework that was responsive to the concerns of managers who were being
confronted with unprecedented levels of environmental turbulence and change. The theory holds
that the purpose of the firm is to create wealth or value for its stakeholders by converting their
stakes into goods and services or to serve as a vehicle for coordinating stakeholder interests. The
word Stakeholder was chosen on the basis of the traditional term stockholder, which takes only a
look at the economic point of view, where the stakeholders are defined as any group of individuals
27
who is affected by or can affect the achievement of an organization's objectives (Freeman, 1984).
Freeman (1984) further states that stakeholder approach suggests that managers must formulate
and implement processes which satisfy all and only those groups who have a stake in the business.
A stakeholder approach is very much concerned about active management of the business
environment, relationships and the promotion of shared interests in order to develop business
strategies.
The theory assumed that adoption of Treasury Single Account by the federal government is
as a result of the pressure from stakeholders/citizens majorly against corruption. It suggested that
the government will responds to the concerns and expectations of powerful stakeholders/citizens
and some of the responses will be in the form of strategic opinions. Stakeholders' theory provides
rich insights into the factors that motivate government in relation to the adoption and
implementation of Treasury Single Account (Ekubiat & Ime, 2016). It assumed that adoption of
Treasury Single Account by the federal government is as a result of the pressure from
stakeholders/citizens majorly against corruption. It suggested that the government will responds
to the concerns and expectations of powerful stakeholders/citizens and some of the responses will
be in the form of strategic opinions. Stakeholders’ theory provides rich insights into the factors
that motivate government in relation to the adoption and implementation of Treasury Single
Account.
2.3.2 Public Finance Management Theory

This theory assumed that every aspect of financial resources – collection and expenditure
should be properly managed in government for the benefits of the citizens. It includes mobilization
of resources, programs prioritization, the process of budgeting, management of resources
efficiently and control exercise to guide against threats. This study is anchored on this theory
28
because the adoption of Treasury Single Account (TSA), a public finance management tool was
primarily to avoid misapplication of public funds.
2.3.3 Modern Money Theory (MMT)

This theory was developed by an American economist, Warren Mosler. The theory is about
how governments that have monetary sovereignty operates and how they affect the economy. It
shows that it is relevant to aggregate the central bank and the treasury into a government sector
that finances itself through monetary creation such that financial position of the treasury and the
central bank are so intertwined that both of them are constantly in contact in order to make fiscal
and monetary policy run smoothly. This study is anchored on this theory because the adoption
Treasury Single Account (TSA) was aimed towards providing a consolidated view of all
government resources.
2.4 Empirical Review

Jegede (2015) states in his study that majority of the MDAs and extra ministerial
departments are against the TSA due to the fear of not having a control of monies they lodged in
the bank account of their choices and that some agencies lodged the revenue they collected in fixed
deposit accounts where huge interests are accrued.
Kanu (2016) in his study on the effect of TSA implementation on liquidity and performance
of banks note that the implementation of TSA in the public accounting system impacted negatively
on the banks liquidity base and the performance of banking sector in Nigeria.
Adebisi and Okike (2016) studied the adoption of the treasury single account (TSA) and
its effect on revenue leakages of Nigerian states. Primary data were collected from via
questionnaire while the analysis was done using regression analysis with the aid of SPSS 22. The
result of the study revealed that the TSA adoption is an effective tool for curbing revenue leakage
in Nigerian states.
29
Yusuf and Mohammed (2016) examined the effect of (TSA) policy on the public financial
management in Nigeria and its benefits if properly implemented. Both primary and secondary data
were employed. The population of this study comprised of Ministries, Department and
Agencies (MDAs) within Damaturu, Yobe State. The data were analyzed using ANOVA
techniques. The result of the study showed that, proper implementation of TSA by all
stakeholders will help tremendously in reducing corruption, mismanagement of Public fund,
block leakages and other financial irregularities in states and the country at large.
Igbokwe-Ibeto, et al (2016) evaluated the policy of Treasury Single Account (TSA)
adopted by the Nigerian government as an essential tool for enhancing transparency and
accountability in public sector financial. The study adopted both qualitative and quantitative
research design and descriptive analysis to gain an insight into the nature and character of TSA
operations in Nigeria. The study found that, for an administration that has social contract with
Nigerians in terms of service delivery; it has the obligation to aggregating states’ resources to
provide social services, amenities and infrastructural development to the people.
Oti, Igbeng and Obim (2016) appraised the policy impact of TSA in Nigeria with a view
to proffering solution to the identified gaps. Questionnaires were administered to gather views of
individuals and institutions. Secondly, data were equally gathered and analyzed using survey and
exploratory research design. The study revealed various sheds of opinion: while bankers decry the
distortion of their liquidity management plan, the federal government on the other hand claims a
huge success because it can now comment on its aggregate cash holding without the drudgery
hitherto associated with getting to all commercial banks or MDAs with multiple accounts.
Igbekoyi and Agbaje (2017) assessed the implication of adoption of TSA on accountability
and transparency in the Nigerian public sector; with a view to find out if the policy is capable of
30
promoting government accountability function. The study was consisted of all ministries,
departments and agencies (MDAs) in the public service with sample size of ten (10) MDAs
involved in revenue generation selected using purposive sampling technique. The hypotheses were
tested using regression analysis (ANOVA). The finding of the study showed that, TSA significant
positive impact on financial leakages, transparency and curb financial misappropriation.
Fatile and Adejuwon (2017) examined the implication of Treasury Single Account on cost
of governance with specific reference to Buhari civilian administration in Nigeria. The study was
qualitative in nature, relying on secondary sources. It was anchored on Stakeholder Theory. The
studey found that increase in the cost of governance is not basically as a result of over-bloated
bureaucracy rather corruption can be considered major cause of the increase. TSA therefore is
primarily to ensure accountability of government revenue, enhance transparency and avoid
misappropriation of public funds.
Nwaorgu and Ezenwaka (2017) ascertained effect of treasury single account and
accountability in the Nigeria Public Sector. A descriptive survey research design was used. The
population of this study consisted of 600 staff of the four federal health tertiary institutions drawn
from Account Departments and simple size of 250 Account Departments staffs were selected using
the proportionate random sampling technique. A structured 25-item validated questionnaire was
used for data collection. The reliability of the instrument was ensured using pilot test technique,
which was analyzed using Cronbach alpha method and yielded an overall reliability co-efficient
of 0.85 with the aid of statistical package for social science (SPSS) 20.0. Data were analyzed using
descriptive statistics and one regression models for the research questions and for test of
hypotheses at 0.05 level of significance. Findings showed that adaptation of a treasury single
account and accountability (TSA) in the Nigeria Public Sector is capable of plugging financial
31
loopholes, promoting transparency and accountability in Federal Health Tertiary Institutions in
South-East Nigeria.
Akujuru and Enyioko (2017) examined the effects of treasury single account policy on
corruption in Nigeria from 2011 to 2017. The study adopted a cross sectional survey design and
used questionnaire to generate its data. The population of the study consisted of 6393 staff from
the federal ministries, departments and agencies (MDAs) in Rivers State. The sample size of the
study was determined at 377 staff through the use of Prof. Taro Yameme sample size method. The
data were analyzed through the use of descriptive statistics. The study found that the treasury single
account (TSA) policy was introduced to block financial leakages, reduce corruption, promote
transparency and prevent mismanagement of government's revenue in public sector organisations
It is therefore established that majority of the studies focused on the effect of TSA on
financial management in the public sector with few studies specifically addressing its effect on
accountability, corrupt practices especially from the Benue state perspective. This study therefore
examines the effect of TSA on accountability, corrupt practices and financial discipline in the
Nigerian public sector.
Yusuf (2016) carried out a study on the effects of Treasury Single Account on public
finance management in Nigeria. The main objective of the study was to examine the extent to
which Treasury Single Account can block financial leakages, promotes transparency and
accountability in the public financial management. Both primary and secondary data had been
employed in the study. The populations of the study are Ministries, Department and Agencies
(MDAs) within Bauchi metropolis using a sample of 72 respondents through judgment sampling.
The data were analyzed using the Pearson Correlation techniques. The result of the study showed
32
that adoption of a Treasury Single Account (TSA) is capable of plugging financial loopholes,
promoting transparency and accountability in the public Financial System.
Ekubiat and Ime (2016) studied the Adoption of Treasury Single Account by State
Governments of Nigeria: Benefit, challenges and Prospects. The study examined the benefits,
challenges and prospects of adoption of Treasury Single Account (TSA) by State Governments of
Nigeria. The study made use of both primary and secondary data. Descriptive cross-sectional
survey design was adopted for the study. The population for the study consisted of 200 Professional
Accountants in Akwa Ibom State. Taro Yamane’s statistical formula was used to select sample
size of 133. Purposive sampling technique was used to select the 133 respondents/samples. The
data obtained from questionnaire administration were analyzed using descriptive statistics and t-
test statistics. It was found that TSA adoption and full implementation by the state governments
will be of greatest benefit as showed in the weighted means scores of 4.20 and tcal of 24.87; there
will be challenges in a short-run but the benefits at a long-run will definitely out-weight the
challenges.
Mutalib, Bulkachuwa, Uarame and Chijioke (2015) also studied the Impact of Treasury
Single Account (TSA) on Ministries, Departments and Agencies (MDA’s) Accounting
Information and Accountability: A conceptual Review. The study examined the effect of TSA on
MDAs accounting information and accountability of public funds in Nigeria. The study employed
both primary and secondary data for the purpose of the study. The result shows that there is no
doubt that with the introduction of TSA on MDAs Accounting information, the issue of corruption,
mismanagement of public funds and government capital base will improve drastically thereby
boosting the Nigeria Economy for good governance and for potential investment.
33
Omodero and Okafor (2016) conducted a research on the Efficiency and Accountability of
Public Sector Revenue and Expenditure in Nigeria (1970-2014). The study was carried out to
examine the accountability of public officers in the management of the financial resources of the
country and means of achieving efficient, accountable and transparent society. The study made
use of secondary data to examine the total federal government revenue and expenditure, state
governments’ revenue and expenditure were collected from Statistical bulletin from the Central
Bank of Nigeria from 1970-2014. The results were analysed using descriptive and inferential
statistics; t – test statistical tools and regression were equally used to test the hypotheses formulated
in the study. The findings reveals that efficiency of public sector expenditure do effectively have
implications on accountability in Nigeria in spite of the absence of other the efficiency of public
sector expenditure variables because the EPSE has significant effect of 2.930 (t-value) on recurrent
expenditure and as well significant effect of 3.939 (t-value) on capital expenditure. The research
concluded that there is significant relationship between efficiency of public sector expenditure,
recurrent expenditure and capital expenditure in Nigeria from 1970-2014.
Akhidime (2015) researched on Accountability and Financial Reporting in Nigeria Public
Financial Management: An Empirical Exploration. The study analyzed government financial
reporting and accountability system, and carried out an empirical examination of the various
aspects of accountability within the context of the role of government financial reporting in public
accountability in Nigeria. The study was conducted using primary data; personal interviews and
Accountability Evaluation Questionnaires were used as research instruments. Likert scale was
employed in analyzing the data. The findings of the study reveals that the effective implementation
of development policies and programs is anchored on purity of action, honesty of purpose, probity
and integrity, which are important hallmarks of accountability and transparency.
34
Aminatu (2016) studied the Impact of Integrated Financial Management System on
Economic Development: The Case of Ghana. The study assessed the impact of Integrated
Financial System by making use of both qualitative and quantitative data. Regression analysis was
used as a statistical tool to analyze data accumulated over the last ten (10) years by the Ministry
of Finance and Economic Planning. This study looks at the impact of GIFMIS on Ghana’s
economic development by looking at gross domestic product (GDP), economic growth, and
resource allocation to major sectors of the economy. It is noted from the analysis that some sectors
of the economy contribute immensely to GDP growth whereas other sectors have an adverse effect.
Analysis results also showed that GDP growth does not have a direct impact on economic growth.
Ahmed (2016) carried out research on Treasury Single Account (TSA) as an Instrument of
Financial Prudence and Management: Prospects and Problems. The objective of the study was to
examine the prospects for financial prudence and effective and efficient management of resources
available. The paper therefore provides the conceptual meaning of the TSA and also gives its
expected benefits to the economy of Nigeria such as enhance system of financial management and
control, unification of various Accounts of government, reduction of the costs of government
borrowing and ensuring of optimum utilization of government financial resources. The paper also
analyses the objectives of the TSA systems and its various Accounts such as TSA main account,
Subsidiary Account, ZBAs, Transit and Imprest Account among others. The paper finally
discusses the prospects of the TSA system and its challenges. It was concluded that the system
requires political will, honesty and determination so as to overcome the various challenges
identified in the paper in order to achieve the expected benefits of the system.
Tari, Myatafadi & Kibikiwa (2016) considered Treasury Single Account (TSA) Policy in
35
Nigeria: Reviving Jonathan’s ‘Dead’ Policy Directives. The main study attempts to look at the
contributions of reviving the Treasury Single Account. The paper relied on secondary
methodology to effectively examine the fiscal impact of reviving the TSA policy and anchored on
incremental model as a framework of analysis. The paper suggests better ways of making the
policy effective amidst the dwindling oil price and the superiority of Dollar against the Naira.
Hence, the research concluded that except proper monitoring of government account is carried out,
in all government institutions and strong punitive measure applied against defaulters and corrupt
officers, that TSA will be a failure in Nigeria.
Oguntode, Adekunle and Adegie (2016) analysed Treasury Single Account and Nigeria’s
Economy Between 1999 and 2015. The study was conducted to determine whether the
establishment of a unified structure of government bank accounts via a Treasury Single Account
(TSA) will solve the problem of frivolous and unscrupulous spending of Government fund and
hence eradicate loss and enhance cash management and control. Secondary data was employed for
the research work, CBN statistical bulletin (1999-2015) was analyzed using the OLS estimator.
The result shows that the Treasury Single Account has a positive significant impact on the
country’s economic growth but this impact is limited by various factors, one of them being the
recent implementation of the policy in Nigeria which made the discovery of historical data
difficult. It was concluded that the federal government of Nigeria should initiate policies and
various means to make sure that there are proper accountings of the funds entering into the
Treasury Single Account, and that such fund should follows due process. Also that any subsequent
foul play by any agencies, or even the CBN is duly prosecuted.
36
CHAPTER THREE
METHODOLOGY
3.1 Introduction
This chapter deals with the methods and procedures that will be employed in the research
study to collect and present the data. It will also reveal how data will be collected and how they
will be analyzed. For the purpose of this study specific attention will be given to research design,
population of the study, sample and sampling technique, sources of data, research instruments,
method of data collection, reliability and validity of research instruments and method of data
analysis.
3.2 Research Design

This study basically will adopt the survey research design in which structured questionnaire will
be designed and distributed to the respondents as a means of gathering additional information this
design is most appropriate and suitable for measuring or ascertaining the impact of one variable
on another.
3.3 Population of the Study

The population of the study comprises the members of staff in Bursary and Audit
Departments in Federal University of Technology Akure (FUTA) Ondo state, Nigeria. From the
available data on the ICT of Federal University technology Akure (FUTA) as at December 2019,
the total number of staff in Bursary and Audit Department constitutes one hundred and ten (110)
staff. This constitutes the population of this study.
3.4 Sample and Sampling Technique

A total of eighty-six (86) members of staff in Bursary and Audit Department in Federal
University of Technology Akure (FUTA) Ondo state, which will be conveniently selected, formed
37
the sample size for the study. The sample size is arrived at by the use of number estimation formula
as suggested by Taro Yamane (1967) as calculated below.

𝑁
n= 1+𝑁(𝑒)2
Where:
n= Sample size;
N= population size;
e = percentage level of significance; and
N = 110
110
𝑛=
1 + 110(0.05)2
= 86
3.5 Sources of Data

The source of data employed by the researcher is the primary data source. The data consists
of the information to be elicited from the sampled respondents using the research instrument
(questionnaire). The questionnaire will be designed using a Likert rating scale to measure the
degree of agreement by the respondents to a statement that describes a situation.
3.6 Validity and Reliability of the Instrument

Validity is defined as the extent to which a test or an instrument measures what we actually
intend to measure (Cooper & Schindler, 2008). In this study, adequate consideration will be given to
issues of face and content validity of the instrument used. To ensure face and content validity, the
instrument will be given to my supervisor, as well as other lecturers in Faculty of Social and
Management Sciences, in Adekunle Ajasin University. They will be basically required to review and
criticize the items on the instrument in terms of their clarity, appropriateness of the language and
38
instructions that the respondents are expected to adhere to. They also aided in determining whether the
items in the questionnaire can elicit the relevant information that they are expected to generate from
the respondents. Their criticism will be incorporated in modifying the items on the instrument used.
In order to ensure the reliability of our measuring instruments, the “test/retest method” will be
used to determine the reliability of our measuring instrument. To this end, the same set of
questionnaires will be administered to the same group of respondents; after which the scores of the
respondents’ will be examined in order to establish the degree of consistency. In terms of the reliability
of the instrument, 20 copies of the questionnaire will be administered to the staff. The questionnaire
will be retrieved and tested with Cronbach’s Alpha value for each item on the questionnaire
3.7 Method of Data Analysis

Data collection will be analyzed statistically based on the hypotheses formulated and the
objectives of the research work. To further make it analytical, data gather will be group so as to
allow for a diagrammatical representation using the chi-square graph. This information obtained
from respondents of the questionnaire will be analyzed using chi-square denoted by the Greek
letter x2. It is used in testing hypotheses convening the difference between sets of observed
frequencies of sample and a corresponding set of expected frequencies. The formula is given as:
( Fo − Fe) 2
X2 =  Fe
Where:
X2 = Chi-square
Fo = the observed frequency
Fe = the expected frequency
Σ= Summation
39
If the theoretical value of Chi-Square (x2) is greater than the calculated value of chi-square (x2) we
accept the null hypothesis (H0). But if the theoretical value of the chi-square (X2) is less than the
calculated value of chi-square (x2) we accept the alternative hypothesis
40
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION

4.1 Introduction
This chapter examined detailed analysis of the collated result of questionnaire retrieved and
analyzed using chi-square. Issues discussed include data analysis and presentation, estimation of
results and testing of the various hypotheses formulated earlier in chapter one. The outcome of
various analysis and results are presented in suitable form and precise to enhance better
understanding of the study.
4.2 Data Presentation and Interpretation

The outcome of questionnaire administered and retrieved which was prepared in Likert-
scale questions form (strongly agreed, agreed, disagreed and strongly disagreed) were analyzed
based on the objectives of the study. The first part of the analysis is concerned with details that
reveal the socio- demographic data of the respondents, and the second part of the analysis is
concerned with drawing up certain conclusion on the basis of the stated research questions and the
research hypotheses. This involves the use of tables to analyze the respondents and their respective
percentages. A total number of eighty-six (86) copies of questionnaire were administered to
respondents out of which seventy-five (75) were retrieved from the respondents and used for the
analysis.
Distribution and retrieved of questionnaire
Population Number of Number Number Percentage
Respondents Administered Retrieved of Returned
Bursary and Audit staff 86 86 75 87
Source: Field Survey, 2020
41
4.2 Socio-demographic information collected includes gender, age distribution, marital
status, educational status and number of years in service.
Gender distribution Frequency Percentage (%)
Male 49 65
Female 26 35
Total 75 100
Age distribution Frequency Percentage (%)
below 25yrs 2 3
26-30yrs 9 12
31-35yrs 7 9
36-40yrs 8 11
41-45yrs 23 31
46 and above 26 35
Total 75 100
Marital status of the respondents Frequency Percentage (%)
Single 16 21
Married 59 79
Divorced 0 0
Total 75 100
Educational Qualification Frequency Percentage (%)
SSCE 3 4
NCE/OND 6 8
42
HND/B.SC 40 53
PhD/M.SC/MBA 21 28
Others 5 7
Total 75 100
Number of years in service Frequency Percentage (%)
Below 5 years 12 16
6-10yrs 25 33
11-15yrs 13 17
16-20yrs 8 11
20 yrs. and above 17 23
Total 75 100
Interpretation;
From the table above, it was observed that 49 of the respondents were male which represents
65 percent while 26 of the respondents were female which represent 35 percent of the respondents.
Under the age distribution of the respondents, 2(3%) of the respondents are below 25 years,
9(12%) of the respondents are in the age range of 26-30years, 7(9%) of the respondents are 31-35,
8(11%) of the respondents are age range of 36-40 years, 23(31%) of the respondents are 41—45
years and 26(35%) of the respondents are 46 year and above. .
Under the marital status, it reveals that 16(21%) of the respondents are single, 59(79%) of
the respondents are married while 0(0%) of the respondents are divorced.
It was also reveals under educational qualifications, 3(4%) are SSCE holders, 6(8%) of the
respondents are NCE/OND holders, 40(53%) of the respondents are HND/B.Sc holders, 21(28%)
43
of the total respondents are PhD/M.SC/MBA holders and 5(7%) of the respondents have others
certification.
Under the number of year in service, it was revealed that 12(16%) of the respondents are
below 5 year in service, 25(33%) of the respondents are have spent 6-10years in service, 13(17%)
of the respondents are 11-15years in service, 8(11%) of the respondents have spent 16-20 years in
service, 17(23%) of the respondents have spent 21 year and above in service.
Table 4.3 TSA implementation and its effect on government institutions

S/N Treasury single account implementation and its impact on SA A D SD
government institutions
6 Implementation of treasury single account integrates all revenues 39 25 7 4
and treasuries from all ministries, departments and agencies and

52% 33% 9% 6%
extra ministerial departments in the country
7 The implementation of TSA reduces the multiplicity of bank 46 22 2 5
accounts previously maintained by various MDAs

61% 29% 3% 7%
8 Implementation of treasury single account is necessity in the 43 32 0 0
operations of government in this modern era

57% 43% 0% 0%
9 Implementation of TSA is a policy that increases the revenue 29 25 21 0
inflow in the purse of the government as well as places it in a

39% 33% 28% 0%
better stead to adequately meet its financial obligations to the
citizens of the country
44
10 The implementation of TSA policy has the capacity of crippling 17 26 22 10
Ministries, Departments and Agencies (MDAs) as a result of

23% 35% 29% 13%
bureaucracy in assessing needed fund for the smooth running of
MDAs
Mean 46% 35% 14% 5%
From the analysis above 46% of the respondents strongly agreed, 35% of the respondents agreed,
14% of the respondents disagreed and 5% of the respondents strongly disagreed.
Test of Hypothesis One
H0 : There is no effect of Treasury Single Account (TSA) implementation on Government
institutions performance in Nigeria
H1 : There is effect of Treasury Single Account (TSA) implementation on Government
institutions performance in Nigeria
Chi-square test (X2) is used to test question one (1) at 5% (0.5) level of significance. The question
will be tested using question 6, 9 and 10
Table 4.3.1 Contingency table

Options 8 9 10 Total
Favorable Responses 75 54 43 172
Unfavorable Responses 0 21 32 53
45
Total 75 75 75 225
Computation of expected frequency (E)
E=
Where; RT - row total
CT - column total
GT - Grand total
172 𝑋75 172 𝑋 75 172 𝑋 75

(i) = 57 (ii) = 57 (iii) = 57
225 225 225
53 𝑋 75 53 𝑋 75 53 𝑋75
(iv) = 18 (v) = 18 (vi) = 18
225 225 225
Table 4.3.2 Chi-Square (X2)

Question 8 Fo Fe Fo-Fe (Fo-Fe)2 (Fo − Fe) )2
Fe
Favorable Responses 75 57 18 324 5.68
Unfavorable Responses 0 18 -18 324 18.00
Question 9
Favorable Responses 54 57 -3 9 0.16
Unfavorable Responses 21 18 3 9 0.5
46
Question 10
Total X2=29.67
2
X cal =29.67
df (R-1) (C-1) (3-1) (5-1) = 8
The value of chi-square (X2) at 4 degree of freedom at 5% level of significance is 15.51.
Decision
From the above computation, it was discovered that the table value of X2 (29.67) which is
2
greater than the X tab (15.51). Hence, we reject the null hypothesis and accept the alternative
hypothesis. Thus, the study concludes that there is positive and significant impact of Treasury
Single Account (TSA) implementation on Government institutions performance in Nigeria.
Table 4.4 Treasury single account blocks financial leakages in Government institutions.
Treasury single account blocks financial leakages in SA A D SD
Government institutions.
11 For Treasury Single Account (TSA) to work effectively there 27 40 5 3
must be daily clearing and consolidation of cash balance into

36% 53% 7% 4%
the central account even where the MDA’s accounts are
already held at the CBN.
47
12 Treasury Single Account policy was implemented to block 30 45 0 0
financial leakages in the government institutions

40% 60% 0% 0%
13 Treasury single account policy will aid government planning 29 36 10 0
and development thereby reducing fraud to the minimum

39% 48% 13% 0%
14 Treasury single account allows complete and timely 21 54 0 0
information on government cash resources.

28% 72% 0% 0%
15 Treasury single account leads to loss of job especial in the 15 22 32 6
deposit money banks that hitherto rely on government accounts

20% 29% 43% 8%
for huge cash deposit.
Mean 33% 52% 13% 2%
13% of the respondents disagreed and 2% of the respondents strongly disagreed.
Test of Hypothesis Two
H0: Treasury Single Account (TSA) does not block financial leakages in Government institutions
in Nigeria.
H1: Treasury Single Account (TSA) blocks financial leakages in Government institutions in
Nigeria.
48
Favorable Responses 67 75 37 179
Unfavorable Responses 8 0 38 46
Total 75 75 75 225
179 𝑋75 179 𝑋 75 179 𝑋 75

(i) = 60 (ii) = 60 (iii) = 60
225 225 225
46 𝑋 75 46 𝑋 75 46 𝑋75
(iv) = 15 (v) = 15 (vi) = 15
225 225 225

Question 11 Fo Fe Fo-Fe (Fo-Fe)2 (Fo − Fe) ) 2
Fe
Unfavorable Responses 8 15 -7 49 3.27
Question 12
Question 15
49
Total X2=66.93
2
X cal =66.93
df (R-1) (C-1) (3-1) (5-1) = 8
Decision
From the above computation, it was discovered that the table value of X2 (66.93) which is
2
greater than the X tab (15.51). Hence, we reject the null hypothesis and accept the alternative
hypothesis. Thus, we concluded that Treasury Single Account (TSA) blocks financial leakages in
Table 4.5 Treasury single account promotes transparency and accountability in

Government institutions in Nigeria
Treasury single account promotes transparency and SA A D SD
accountability in Government institutions in Nigeria
16 Treasury single account promotes transparency and prevents 31 21 23 0
mismanagement of government's revenue.

41% 28% 31% 0%
50
17 Treasury single account unifies all government accounts and 22 45 5 3
prevent revenue loss and mismanagement by revenue-

29% 60% 7% 4%
generating agencies
18 Treasury single account reduces corruption in the accounting 16 35 18 6
process
21% 47% 24% 8%
19 Treasury single account helps in eliminate operational 24 41 6 4
inefficiency and costs associated with maintaining multiple

32% 55% 8% 5%
accounts across multiple financial institutions
20 Treasury single account are now more authentic and secured 25 50 0 0
than before in Nigerian public sector

34% 66% 0% 0%
Mean 31% 51% 15% 3%
15% of the respondents disagreed and 3% of the respondents are strongly disagreed. This implies
that Treasury single account promotes transparency and accountability in Government institutions
in Nigeria
Test of Hypothesis Three
H0: Treasury Single Account (TSA) does not promote transparency and accountability in
H1: Treasury Single Account (TSA) promotes transparency and accountability in Government
institutions in Nigeria.
51

Favourable Responses 52 51 75 178
Unfavourable Responses 23 24 0 47
Total 75 75 75 225
178 𝑋75 178 𝑋 75 178 𝑋 75

(i) = 59 (ii) = 59 (iii) = 59
225 225 225
47 𝑋 75 47 𝑋 75 47 𝑋75
(iv) = 16 (v) = 16 (vi) = 16
225 225 225

Question 16 Fo Fe Fo-Fe (Fo-Fe)2 (Fo − Fe) ) 2
Fe
Favourable Responses 52 59 -7 49 0.83
Unfavourable Responses 23 16 7 49 3.06
Question 18
Favourable Responses 51 59 -8 64 1.08
52
Unfavourable Responses 24 16 -8 64 4.00
Question 20
Favourable Responses 75 59 16 256 4.34
Unfavourable Responses 0 16 -16 256 16.00
Total X2=29.31
2
X cal =29.31
df (R-1) (C-1) (3-1) (5-1) = 8
Decision
From the above computation, it was discovered that the table value of X2 (29.31) which is greater
2
than the X tab (15.51). Hence, we accept the alternative hypothesis and reject the null hypothesis.
Thus, we concluded that Treasury Single Account (TSA) promotes transparency and
accountability in Government institutions in Nigeria.
4.3 Discussion of Findings

From the analysis, it was revealed that there is positive and significant relationship between
Treasury Single Account (TSA) implementation and Government institutions performance in
Nigeria. This implies that Treasury Single Account implementation increases performance of
Government institutions in Nigeria. This finding is aligned with the study conducted by Igbekoyi
53
and Agbaje (2017) the finding of their study revealed that, Treasury Single Account have
significant positive impact on financial leakages, transparency and curb financial misappropriation
in Nigeria. It was also supported by Fatile and Adejuwon (2017) the study found that increase in
the cost of governance is not basically as a result of over-bloated bureaucracy rather corruption
can be considered major cause of the increase. TSA therefore is primarily to ensure accountability
of government revenue, enhance transparency and avoid misappropriation of public funds.
Secondly, the finding also showed that Treasury Single Account (TSA) implementation
blocks financial leakages in Government institutions in Nigeria. This result is in agreement with
the study of Akujuru and Enyioko (2017) their study found that the treasury single account (TSA)
policy introduction block financial leakages, reduce corruption, promote transparency and prevent
mismanagement of government's revenue in public sector organisations. In the same vein, it also
aligned with the study of Adebisi and Okike (2016) the result of the study revealed that the
Treasury Single Account adoption is an effective tool for curbing revenue leakage in Nigerian
states. Yusuf and Mohammed (2016) the result of the study showed that, proper implementation
of TSA by all stakeholders will help tremendously in reducing corruption, mismanagement of
Public fund, block leakages and other financial irregularities in states and the country at large.
Finally, the study also showed that Treasury Single Account (TSA) implementation
promotes transparency and accountability in Government institutions in Nigeria. This finding is in
line with the finding of Igbokwe-Ibeto, et al (2016) the study found that, for an administration that
has social contract with Nigerians in terms of service delivery; it has the obligation to aggregating
states’ resources to provide social services, amenities and infrastructural development to the
people. In the same vein, the finding also supports by Nwaorgu and Ezenwaka (2017) their findings
showed that adaptation of a treasury single account and accountability (TSA) in the Nigeria Public
54
Sector is capable of plugging financial loopholes, promoting transparency and accountability in
Federal Health Tertiary Institutions in South-East Nigeria.
55
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

5.1 Introduction
The study empirically examined the implementation of Treasury Single Account (TSA) and
its effect on Government Institution in Nigeria, the chapter discusses the summary of findings,
conclusion and policy recommendations on the study under review.
5.2 Summary of Findings

The summary of the research findings from the data analysis were as follows:
1. The study revealed that there is positive and significant relationship between Treasury
Single Account (TSA) implementation and Government institutions performance in
Nigeria. This implies that Treasury Single Account implementation increases performance
of Government institutions in Nigeria.
2. The finding also showed that Treasury Single Account (TSA) implementation blocks
financial leakages in Government institutions in Nigeria.
3. Finally, the result also revealed that Treasury Single Account (TSA) implementation
promotes transparency and accountability in Government institutions in Nigeria.
5.3 Conclusion
The study empirically examined the implementation of Treasury Single Account (TSA) and
its impact on Government Institution in Nigeria. From the analysis, it was revealed that Treasury
Single Account implementation increases performance of Government institutions in Nigeria. It
was also showed that Treasury Single Account (TSA) implementation blocks financial leakages
in Government institutions in Nigeria. The institutionalization of a TSA has significantly affected
the improved government performance which further to confirm that TSA is capable of blocking
the financial loopholes in revenue generation and promoting transparency and accountability in
57
the public financial system. It was also discovered that Treasury Single Account (TSA)
implementation promotes transparency and accountability in Government institutions in Nigeria.
However, TSA significantly affect revenue collection, centralized revenue management, but does
not affect budgetary control. It is therefore concluded, that the implementation of TSA in the public
sector is justifiable and has ability to achieve the main objective of implementing the existing law
of maintaining a single account as opposed to the multiple accounts system adopted by government
in the past.
The TSA policy will greatly improve the management of government revenue. If it is
implemented, it will pave way for the timely payment and capturing of all revenues going into the
government treasury, without the intermediation of multiple banking arrangements. Besides, the
system will likely reduce the mismanagement of public funds by revenue-generating agencies. It
is also expected to help check excess liquidity, inflation, high interest rates, round-tripping of
government deposits, and the sliding value of the naira.
5.4 Recommendations
For the purpose of this study, the following recommendations were made;
i. The federal government should secure as soon as possible the appropriate legislative
support to facilitate the relevant regulatory environment which will drive the effective
implementation of the TSA in the states and local governments in order to promote
accountability and transparency at all levels of government.
ii. Government should make effort to develop a sustainable budgetary control mechanism
considering the fact that it has been established within the scope of this study that
maintenance of TSA does not affect budgetary control and this is a core area that is used
as a yardstick for performance measurement in the public sector.
58
iii. Government should enforce the implementation of TSA and make it mandatory for all the
MDAs and parastatals to adhere to since its implementation has significantly improved the
performance of federal government ministries, departments and agencies in Nigeria.
iv. The financial regulators, including the CBN, should also be proactive and institute
measures to correct any lapses or negative impact of the policy, as no law or measure is
foolproof. The fear that it will negatively affect commercial banks, and possibly lead to
massive job losses, should be addressed
v. The implementation of the order will however require the cooperation of the National
Assembly with the Executive arm to ensure strict compliance by the MDAs to make
enforcement possible.
5.5 Suggestions for Further Studies

In spite the positive significant margin in the value of income generated in the public sector
compared to the era of multiple accounts, there still exist some levels of misappropriations that
have been reported. It so therefore that there are still some loopholes that need to the block. Further
research can be conducted to identify the loopholes and recommend action that can be taken by
government to curb them.
59
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64
APPENDIX
QUESTIONNAIRE
Department of Accounting,
Faculty of Social and
Management Sciences,
Adekunle Ajasin University,
Akungba Akoko, Ondo State.
20th December, 2019.
Dear Sir/Ma,
COMPLETION OF QUESTIONNAIRE
I am an undergraduate student of the above-named institution currently undertaking research
on Implementation of Treasury Single Account (TSA) and its impact on Government
Institutions in Nigeria. I humbly request your assistance in filling this questionnaire.
This study is prerequisite for the partial fulfillment of an award of B.Sc. Degree in
Accounting. Your prompt response will be highly appreciated and shall be used exclusively for
academic purpose. Any information given will be treated in strict confidence.
Thanks, in anticipation.
Yours faithfully,
Folorunso Busayo
65
Section A
Demographic Information
Instruction: Please indicate as appropriate.
1. Gender: Male ( ) Female ( )
2. Age: Below 25 years ( ) 25-30 years ( ), 31-35 ( ), 36-40 ( ), 41-45 ( ), 46 and
above ( )
3. Marital Status: Single ( ) Married ( ) Divorced ( )
4. Highest Educational Qualification: SSCE ( ) ND/NCE ( ) HND/BSC ( )
MBA/M.Sc/M.Ed/M.Phil/PhD ( ) Others( )
5. Number of years in service; below 5 years ( ), 6-10 years ( ), 11-15 years ( ), 16-
20 years ( ), 20 years and above ( )
Section B
Instruction: please indicate the extent to which you agree with the following, you are to assess the
following on a scale of “strongly agree to strongly disagree”.
Key: SA= Strongly Agree, A= Agree, D= Disagree, SD= Strongly Disagree
S/N Treasury single account implementation and performance of SA A D SD
government institutions
6 Implementation of treasury single account integrates all revenues and
treasuries from all ministries, departments and agencies and extra ministerial
departments in the country
66
7 The implementation of TSA reduces the multiplicity of bank accounts
previously maintained by various MDAs
8 Implementation of treasury single account is necessity in the operations of
government in this modern era
9 Implementation of TSA is a policy that increases the revenue inflow in the
purse of the government as well as places it in a better stead to adequately
meet its financial obligations to the citizens of the country
10 The implementation of TSA policy has the capacity of crippling Ministries,
Departments and Agencies (MDAs) as a result of bureaucracy in assessing
needed fund for the smooth running of MDAs
Treasury single account blocks financial leakages in Government
institutions.
11 The effective working of Treasury Single Account (TSA) is due to daily
clearing and consolidation of cash balance into the central account at the
CBN.
12 Treasury Single Account policy was implemented to block financial
leakages in the government institutions
13 Treasury single account policy will aid government planning and
development thereby reducing fraud to the minimum
14 Treasury single account allows complete and timely information on
government cash resources.
15 Treasury single account leads to loss of job especial in the deposit money
banks that hitherto rely on government accounts for huge cash deposit.
67
Treasury single account promotes transparency and accountability in
Government institutions in Nigeria
16 Treasury single account promotes transparency and prevents
mismanagement of government's revenue.
17 Treasury single account unifies all government accounts and prevent
revenue loss and mismanagement by revenue-generating agencies
18 Treasury single account reduces corruption in the accounting process
19 Treasury single account helps in eliminate operational inefficiency and costs
associated with maintaining multiple accounts across multiple financial
institutions
20 Treasury single account are now more authentic and secured than before in
Nigerian public sector
68

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TITLE PAGE

THE IMPLEMENTATION OF TREASURY SINGLE ACCOUNT AND ITS EFFECT ON

GOVERNMENT INSTITUTIONS A STUDY OF FEDERAL UNIVERSITY OF

TECHNOLOGY AKURE (FUTA)

FOLORUNSO Busayo Joshua

MATRIC NO: 150601055

PROJECT SUBMITTED TO THE DEPARTMENT OF ACCOUNTING, FACULTY OF

SOCIAL AND MANAGEMENT SCIENCES, ADEKUNLE AJASIN UNIVERSITY,

AKUNGBA-AKOKO, ONDO STATE, NIGERIA. IN PARTIAL FUFILMENT OF ONE

OF THE REQUIREMENTS FOR THE AWARD OF A BACHELOR OF SCIENCE,

JOSHUA with matriculation number 150601055 with supervision in the department of

Akoko, Ondo State, Nigeria.

DR (Mrs) IGBEKOYI O. E. DATE

My profound appreciation goes to my wonderful supervisor, Mr Oloruntoba S. for his

of love, accommodation, prayers, motivations, encouragement, impact and support throughout my

stay on campus. God bless you all.

TITLE PAGE ................................................................................................................................... i

CERTIFICATION ......................................................................................................................... iii

TABLE OF CONTENTS ............................................................................................................... vi

CHAPTER ONE ............................................................................................................................. 1

1.1 Background to Study ........................................................................................................... 1

1.2 Statement of Problem ....................................................................................................... 3

1.3 Research Questions .......................................................................................................... 4

1.4 Objective of the Study ...................................................................................................... 4

1.5 Research Hypotheses........................................................................................................ 5

1.6 Significance of Study ....................................................................................................... 5

1.7 Scope of Study ................................................................................................................ 6

1.8 Limitation of Study .......................................................................................................... 6

CHAPTER TWO ............................................................................................................................ 7

LITERATURE REVIEW ............................................................................................................... 7

2.2 Conceptual Review .......................................................................................................... 7

2.2.1 Concept of Treasury Single Account (TSA) .................................................................... 7

2.2.2 History of Treasury Single Account in Nigeria ............................................................... 8

2.2.4 Transparency and Accountability in Government Institution ........................................ 11

2.2.5 Performance of Government Institutions ....................................................................... 12

2.2.6 TSA Implementation in Government Institution in Nigeria .......................................... 13

2.2.8 Treasury Single Account System in the Public Sector ................................................... 16

2.2.9 Benefits of Treasury Single Account ............................................................................. 19

2.2.10 Challenges and Problems of TSA .................................................................................. 21

2.2.11 An Illustration Of Revenue Circuit For A Taxpayer...................................................... 24

2.3 Theoretical Review ........................................................................................................ 27

2.3.1 Stakeholder Theory ........................................................................................................ 27

2.3.2 Public Finance Management Theory.............................................................................. 28

2.3.3 Modern Money Theory (MMT) ..................................................................................... 29

2.4 Empirical Review ........................................................................................................... 29

CHAPTER THREE ...................................................................................................................... 37

3.2 Research Design ............................................................................................................. 37

3.3 Population of the Study .................................................................................................. 37

3.4 Sample and Sampling Technique ................................................................................... 37

3.5 Sources of Data .............................................................................................................. 38

3.6 Validity and Reliability of the Instrument...................................................................... 38

3.7 Method of Data Analysis................................................................................................ 39

CHAPTER FOUR ......................................................................................................................... 41

DATA PRESENTATION, ANALYSIS AND INTERPRETATION .......................................... 41

4.1 Introduction .................................................................................................................... 41

4.2 Data Presentation and Interpretation .............................................................................. 41

4.2 Socio-demographic information collected includes gender, age distribution, marital

status, educational status and number of years in service. .................................................... 42

Table 4.3.1 Contingency table ............................................................................................... 45

Table 4.3.2 Chi-Square (X2) .................................................................................................. 46

Table 4.4.1 Contingency table ............................................................................................... 49

Table 4.4.2 Chi-Square (X2) .................................................................................................. 49

institutions in Nigeria ............................................................................................................ 50