Operation of Treasury Single Account (TSA) Issues, Challenges and Way Forward

Abstract

The Treasury Single Account (TSA) is a financial reform initiative aimed at ensuring accountability, transparency, and efficient management of public funds. The policy, introduced by the Nigerian government, consolidates all government revenue accounts into a unified structure under the control of the Central Bank of Nigeria (CBN). This system eliminates the proliferation of multiple government accounts, reduces leakages, and enhances oversight of public funds. This study examines the operation of the TSA, its benefits, issues, and challenges, as well as the way forward for improving its effectiveness. Findings reveal that while the TSA has significantly curbed financial mismanagement, enhanced revenue monitoring, and reduced corruption, it also presents challenges such as technical implementation difficulties, delayed fund disbursement, and resistance from government agencies accustomed to the old system. Additionally, inadequate ICT infrastructure, limited financial autonomy for agencies, and bureaucratic inefficiencies have hindered the full realization of the TSA’s potential. The study concludes that the TSA is a crucial reform for financial prudence in Nigeria but requires continuous improvement, better ICT integration, enhanced financial autonomy for MDAs, and stricter enforcement mechanisms. Recommendations include upgrading digital infrastructure, training government personnel, enforcing compliance measures, and addressing cash flow constraints to maximize the benefits of the TSA system.

Keywords

References