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Treasury Single Account is a public accounting system under which all government revenue, receipts and income are collected into one single account, usually maintained by the country’s bank and all payments done through this account as well. The purpose is primarily to ensure accountability of government revenue, enhance transparency and avoid misapplication of public funds. The maintenance of a treasury single account will help to ensure proper cash management by eliminating idle funds usually left with different commercial banks, and in a way enhance reconciliation of revenue collection and payment (Adedu, 2015).Section 80(I) of the 1999 constitution as amended states; “ All revenues or other money raised or received by the Federation (not being revenues or other money payable under this constitution or any act of National Assembly into any other public fund of the federation established for a specific purpose). Should be paid into and from one consolidated revenue fund of the federation. Successive government have confined to operate multiple accounts for the collection and spending of government revenue in flagrant disregard to the provision of the constitution which requires that all government revenue be remitted into a single account. It was not until 2012 that government ran a pilot scheme for a single account using 217 ministries, department and agencies (MDA) as a test case,   the pilot scheme saved Nigeria about 500 billion in frivolous spending. The success of the pilot scheme motivated the government to fully implement TSA, leading to the directives of banks to implement the technology platform that will help accommodate the TSA scheme. The recent directives by President Mohammadu Buhari: that government revenues should be remitted to a treasury single account is in the provision of the 1999 constitution (CBN 2015). The central bank has opened a consolidated revenue account to receive all government revenue and effect payment through this account, this is the treasury single. All ministries department and agencies are expected to remit their revenue collection to this account through the individual commercial banks who act as collected agents. This means that the money deposits banks will continue to maintain revenues collection accounts for ministries, Departments and agencies, but each money collected by this banks will have to be remitted to the CBN at the end of each banking day. In other words ministries, departments and agencies account with money deposits must be zero-sized at the end of every banking day being completing. The implication is that banks will no longer have access to the float provided by the account they maintained for the ministries, departments and agencies, different types of account could be maintained under a treasury single account arrangement and these may include the TSA main accounts subsidy or sub-accounts, transaction account and zero balance account.

Other types of accounts that could be operated include impressing accounts, transit accounts and correspondent account. These accounts are maintained for transaction purpose for funds flowing in and out of the treasury single account (Adedu, 2015). From the foregoing, it is obvious that the primary benefit of a treasury single account is the mechanism it provides for proper monitoring of government receipt and effective expenditure. In the Nigerian case, it will help to block most, if not all the leakages that have been the bone of the growth of the economy. We have a situation where some ministries, departments and agencies manage their finances like an independent  empire and renut limited revenue to government treasuries under a properly run treasury single account, this is not possible as agencies of government are meant to spend in the within duly approved budget provisions. The maintenance of a single account for the government will enable the ministries of finance monitor fund flow as no agency of government is allowed to maintain any operational banks accounts outside the oversight of the ministries of finance.

As a matter of fact, deposit money banks stand to lose immensely from the implementation of a treasury single account. This is because of the fact that public sector funds constitute a large chunk of commercial banks deposit indeed it is estimated that commercial banks hold about 2.2 trillion public sector funds at the beginning of sector quarter of 2015. The impact of this account at money leaving the system can be imagined when one considers the fact that each time the monthly federal allocation is released the banking system is casually aroused with liquidity and as soon as this public sector fund dries up, they with drawled by the states, liquidity, fights again with later bank rates going up of major impacts will be the movement of funds at revenue-generating parastatals such as the NNPC out of commercial banks.

According to Jonah Rotunda (the accountant general of the federation) the new federation revenue collection (FRC) platform is aimed at improving internally generated revenue in the face of decline oil price. This he said was in line with a series of treasury reforms, which began in 2012, adding that at ensuring transparency and accountability, the management of national finances, director fund office of the accountant general of the federation Mr. Mohammed Dikwa who spoke on his behalf posted that henceforth government revenue would now be paid into their consolidated revenue fund (CRF) and treasury single account (TSA) as it is now difficult for ministries, department and agencies (MDA) to maintain revenues with commercial banks, according to him, with the coming of e-collection ministries, department and agencies (MDA) cannot maintain a revenue bank account with commercial bank`s. 1.2      STATEMENT OF THE PROBLEM The TSA provides a number of 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 the  Government reform agenda as they have been skepticism that trailed the scheme. According to the directive, this measure is specifically to promote transparency and facilitate compliance with sections 80 and 162 of the 1999 Constitution.  However, this is plagued by the inability to redistribute the income from the single treasury back into the economy by ways of fiscal and expansionary monetary of government. Treasury single account TSA has a lot of prospects and challenges for developing economy. In practice, the government banking arrangements may consist of several bank accounts which can be at both the central bank and commercial banks. Consolidating this might take serious effort and genuine commitment on the part of the Central Bank of Nigeria. However, the balances in commercial banks should be cleared every day and all government cash balances should be consolidated in one central account—the TSA main account—of the treasury at the central bank. This posed a huge challenge at the onset of the implementation of the treasury single account. However, Issues related to cash management have arisen and should  be properly dealt with by regulatory authority.  TSA  is  a good idea but it is not free of pitfalls anyway. Several questions have been raised such as what happens when you do not have a trusted leader like Buhari? What will the system abuse look like? Salary and pension biometrics is a reference point. Corrupt Nigerians will develop a way out like the 1% so called commission, Cash for hand & refund through contract inflation etc. What we need is strong and transparent institutional financial framework supported by cashlite practicable limits in real term not just on paper. Strong money laundering laws against cash based transaction limits is needed too. The implementation of the policy of treasury single account (TSA) by the federal government, banks will not have enough money to run their day to day activities properly. Before now, the major source of funds has been the government, business and the public. Banks will continue to find a means of mobilizing funds from the private sector or the public. Treasury single accounts (TSA) has a negative impact on banks in Nigeria because banks have been surviving with government funds,                                                                                                                                                                                                                                                                                                                                                                                                               with the introduction of treasury single account (TSA) that money which are been used to trade would be paid into the country’s treasury account. This money which are paid into treasury are used to appraise government performance. The era of banks depending on government funds has since passed consequences upon the introduction of treasury single account. Banks should have to look for another source of generating funds in Nigeria. The lack of fund for banks will increase than services toward their customers, it will also create room for staff competition amongst banks. 1.3      OBJECTIVES OF THE STUDY The following are the objectives of study i.        To examine the relationship between treasury single account with the economy of Nigeria. ii.       To examine the implication of the treasury single account on the economic development in Nigeria. iii.      To identify the issues and challenges of treasury single account 1.4      RESEARCH QUESTION i.        What is the relationship between treasury single account with the economy of Nigeria? ii.       What is the implication of the treasury single account on the economic development in Nigeria? iii.      What are the issues and challenges of treasury single account?   1.5      STATEMENT OF RESEARCH HYPOTHESIS The under-listed hypothesis are hereby formulated. 1        H0: There is no significant relationship between treasury single account with the economy of Nigeria. H1: There is a relationship between treasury single account with the economy of Nigeria. 2        H0: there is no implication of the treasury single account on the economic development in Nigeria. H1: there is a implication of the treasury single account on the economic development in Nigeria. 3        H0: there is no issues and challenges of treasury single account. H1: there is a issues and challenges of treasury single account. 1.6      SCOPE OF THE STUDY The scope of this study includes all the government-funded entities, including autonomous and statutory government bodies as well as extra-budgetary funds (EBFs) and special account. The effects of TSA on banks and the general public. The study will gather data from some of the MDAs in Rivers State. Federal Medical Centre Port Harcourt branch, Federal college of education (technical) Port Harcourt, Rivers State, Central bank of Nigeria Port Harcourt Rivers State, Zenith bank plc. Port Harcourt branch Rivers State. 1.7      SIGNIFICANCE OF THE STUDY The following are the significance of the study: 1.       The results from this will educate the general public on the benefit of treasury single account to the economy of the country. It will also educate on its temporary effect on the banking industry as a huge sum of money will be leaving the sector suddenly. 2.       This research will also serve as a research base to other scholars and researchers interested in carrying out further research on the subject matter. 3.       Findings and recommendation will be a ready tool to formulation to various agencies, the central bank of Nigeria (CBN) and government. 4.       Funding and recommendation will be to enthrone the active financial discipline, transparency which ultimately will snowball to general growth and development in the economy. 1.8      LIMITATION OF THE STUDY The study is limited with the under listed factors: Financial Constraint: Insufficient funds tend to impede the efficiency of the researchers in sourcing for the relevant materials, alternative or information and in the process of interview this study is not an exemption. Time Constraint: The researcher has to split time between attending lecture studying for exams, gather data for the study and writing the project. Despite these obvious constraints; data available for the study is sufficient to achieve the set-out objectives. 1.9      DEFINATION OF TERMS

The following definition of terms is given to facilitate better understanding:

1.              Treasury Single Account (TSA): It’s a government account which is responsible for the collection, management and expenditure of the public revenue; it can also be defined as public account system under which all government revenue receipts and income are collected into one single account, usually maintained by the central bank.

2.              Central Bank of Nigeria (CBN): It is a principal monetary authority of a polity or monetary union; it normally regulates the supply of money, issues currency and control interest rates. It usually oversees banking activities within it countries border.

3.              Public Fund: It is money that is used by the government to provide goods and services to the public in general. This money has been generated by the government true tax, bonds and budget etc.

4.              Commercial Bank: It’s a financial institution that provides service such as accepting deposits giving businesses loans and auto loans, mortgage lending and basic investment product like the savings account and certificate of deposit.

5.              Reconciliation of Bank Account: It is the process of matching the balances in an entity’s accounting records for a cash account to the corresponding, information on a bank statement. The goal of this process is to ascertain the difference between the two and no book charges on the accounting records as appropriate.

6.              Consolidated Revenue Fund (CRF): It is the team used for the main bank account of the government in any country and it is defined as on fund into which shall flow every stream of public revenue and from which shall come the supply of every service.

7.              Extra-Budgetary Fund (EBF): It refers to sets of government transaction that are not included in the annual budget presentation. These may not be subject to the same level of seniting or account standards as the annual budget.

8.              Ministry of Finance of Nigeria: It is the government body that manages the finance of the federal government of Nigeria including managing, controlling and monitoring federal revenue and expenditure.

9.              State Owned Enterprise (SOF): They are state owned entity; state enterprise, publicly owned corporation, government business enterprise, government agency, public sector understanding or parastatal is a legal entity that undertakes commercial activities on behalf of an owned government.

10.         Zero Balance Account (ZBA): It’s a system of cash pooling (to consolidate the cash balance of several subsidiaries of a single company); this system is designed to leave in the current account of the subsidiary that minimum amount to be able to deal with the debts contracted.

11.         Sub-Account: It’s a segregated balance of funds(accounts) for which the bank acts on behalf of the account holder, such account operate under very strict guidelines, as funds can only be accessed in accordance with the term if a power of attorney agreement approved and executed by the bank.

12.         TransactionAccount: It can also be called demand deposit account, it’s a deposit held at the bank or other financial institution which is available to the account owner ‘on demand’ and is available for frequent and immediate access by the account owner or to others as the account owner may direct

13.         Imprest Account: It is a form of finance accounting system, the most common impress system is the petty cash system, is based characteristic of an imprest system is that a fixed amount is regarded, which after a certain period of time a hen circumstances requires because money was spend, it will be replenished.

14.         Correspondence Account: It is an account (often called a nostroorvestro account) established by a banking institution to receive deposit from, make payments on behalf of or handles other financial transactions for another financial institution.

15.         The Office of Accountant General of the Federation: The office is established under civil service re-organization decree ‘no 43 of 1988 is responsible for the overall management of all receipt and payments of the federal republic of Nigeria.

16.         Revenue Bank Account (RBA): The revenue account is an equity account with a credit balance, this means that a credit in the revenue t-account increases the account balance; it’s shown in the expended accounting equation, revenue increases equity. Unlike other account, revenue account rarely debited because revenue or income are usually only generated income, is rarely taken away from a company.


The study is organized into five chapters; Chapter one deals with the introduction, statement of research problem, objective of the study, research question, research hypothesis, scope, limitation of the study, definition of terms, organization of the study and summary. Chapter two reviews literature in relation to the subject under consideration. The conceptual, theoretical and empirical frameworks were addressed. The third chapter covers research methodology highlighting the research approach, data collection and analysis methods with appropriate justifications. In chapter four, data collected were duly represented and analyzed using appropriate data analysis technique. Finally, chapter five discusses on the facts from the data collected, after which appropriate conclusions and recommendations were proffered.