Journal of Finance and Accounting

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Treasury Single Account: A Tool for Effective Cash Management in Nigeria

Received: 23 September 2016    Accepted: 07 October 2016    Published: 01 November 2016
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Abstract

The Treasury Single Account is a financial tool that unifies all government accounts in a single pool for effective cash management. It ensures that all tax and non-tax revenues are collected from all sources and payments due are made correctly in a timely manner and that government’s cash balances are optimally managed to reduce borrowing costs.TSA was introduced to bring an end to the fragmented multiple accounts kept by all Ministries, Departments and Agencies. The objective of this paper is to examine the effectiveness of the TSA as a tool for effective cash management. The research examines the objectives and benefits of TSA as a catalyst for public financial management in Nigeria. It highlights the emerging issues in TSA implementation, its operational guidelines and essential requirements of the TSA in federating states and the stakeholders responsibilities in the operation of the policy .The paper also discusses the various operational challenges facing the implementation of TSA in Nigeria and concluded that TSA as a financial tool can only achieve its desired objectives in blocking loopholes of wastages and leakages ,curbing corruption and financial recklessness in ranks and file of government functionaries and enthroning transparency and probity, if government put in place enabling environment and adequate legislative supports for the smooth implementation of the policy with minimum infrastructural and technological facilities needed by the MDAs for meaningful compliance. Only gradual implementation of TSA policy can serve as a catalyst and a tool for effective cash management in Nigeria.

DOI 10.11648/j.jfa.20160406.13
Published in Journal of Finance and Accounting (Volume 4, Issue 6, November 2016)
Page(s) 328-335
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Treasury Single Account(TSA), Cash Management, Public Fund and Revenue Leakages

References
[1] Adeolu, I.A. (2015) ‘’Understanding the Treasury Single Account (TSA) System – Things You Should Know.’’Business and Economy, Market Development.
[2] Eme, O.I.,D.C. Chukwarah, and E.N. Iheanach (2015) ‘’Analysis of Pros and Cons of Treasury Single Account Policy in Nigeria’’. Arabian Journal of Business and Management Review (OMAN) vol. 5(4): 20–39.
[3] CENTRAL BANK OF NIGRIA (2015) “Revised Guildelines for Compliance with Treasury Single Account by Banks in Nigeria”. Pp 32–38.
[4] Obinna, C. (2015) ‘’Banks Face Liquidity Strain as Federal Government Enforces Treasury Single Account,’’ Thursday Paper, August 11, p. 52.
[5] Yusuff, M.B. (2016) “Effects of Treasury Single Account on public Finance Management in Nigeria”. Research Journal of Finance & Accounting, Vol. 7(6): 164–170.
[6] Guardian Editorial (2015) “Buhari on Treasury Single Account, Guardian, August, 28, Pp. 16.
[7] Hamisu, M. (2015) “MDAs, Banks under Pressure as TSA Deadline Ends” Daily Trust, September 14. P.3.
[8] Williams M. (2010) “Government Cash Management: Its Interaction with Other Finance Policies. Technical Notes and Manuals (Washington: International Monetary Fund).
[9] Central Bank of Nigeria (2014) “Communique N0 94 of the Monetary Policy Committee Meeting”, March, 24th– 25th, Pp. 1–37.
[10] SailendraPattanaya and Israel Fainboim (2010) “Treasury Single Account: Concept, Design and Implementation Issues” – IMF Working Paper. 10/143 (Washington: International Monetary Fund).
[11] Khan, A and M.Pesson (2010) “Conceptual Design: A critical element of a Government Financial Management Information System, Project Technical Notes and Manuals, (Washington, International Monetary Fund).
[12] Lienert, Ian (2009) “Modernizing Cash Management, Technical Notes and Manual. Fiscal Affairs Department, Washington: International Monetary Fund.
[13] Okwe, M. (2015) Treasury Single Account: Giving Life to Jonathan’s Dead Policy Directives, Guardian. Sunday, 16 August, p. 14.
Author Information
  • Department of Management and Accounting, Obafemi Awolowo University, Ile-Ife, Nigeria

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  • APA Style

    Philip Olawale Odewole. (2016). Treasury Single Account: A Tool for Effective Cash Management in Nigeria. Journal of Finance and Accounting, 4(6), 328-335. https://doi.org/10.11648/j.jfa.20160406.13

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    Philip Olawale Odewole. Treasury Single Account: A Tool for Effective Cash Management in Nigeria. J. Finance Account. 2016, 4(6), 328-335. doi: 10.11648/j.jfa.20160406.13

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    AMA Style

    Philip Olawale Odewole. Treasury Single Account: A Tool for Effective Cash Management in Nigeria. J Finance Account. 2016;4(6):328-335. doi: 10.11648/j.jfa.20160406.13

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  • @article{10.11648/j.jfa.20160406.13,
      author = {Philip Olawale Odewole},
      title = {Treasury Single Account: A Tool for Effective Cash Management in Nigeria},
      journal = {Journal of Finance and Accounting},
      volume = {4},
      number = {6},
      pages = {328-335},
      doi = {10.11648/j.jfa.20160406.13},
      url = {https://doi.org/10.11648/j.jfa.20160406.13},
      eprint = {https://download.sciencepg.com/pdf/10.11648.j.jfa.20160406.13},
      abstract = {The Treasury Single Account is a financial tool that unifies all government accounts in a single pool for effective cash management. It ensures that all tax and non-tax revenues are collected from all sources and payments due are made correctly in a timely manner and that government’s cash balances are optimally managed to reduce borrowing costs.TSA was introduced to bring an end to the fragmented multiple accounts kept by all Ministries, Departments and Agencies. The objective of this paper is to examine the effectiveness of the TSA as a tool for effective cash management. The research examines the objectives and benefits of TSA as a catalyst for public financial management in Nigeria. It highlights the emerging issues in TSA implementation, its operational guidelines and essential requirements of the TSA in federating states and the stakeholders responsibilities in the operation of the policy .The paper also discusses the various operational challenges facing the implementation of TSA in Nigeria and concluded that TSA as a financial tool can only achieve its desired objectives in blocking loopholes of wastages and leakages ,curbing corruption and financial recklessness in ranks and file of government functionaries and enthroning transparency and probity, if government put in place enabling environment and adequate legislative supports for the smooth implementation of the policy with minimum infrastructural and technological facilities needed by the MDAs for meaningful compliance. Only gradual implementation of TSA policy can serve as a catalyst and a tool for effective cash management in Nigeria.},
     year = {2016}
    }
    

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