Perspectives on Treasury Single (TSA) Policy in Nigeria

Abstract

This paper studies the Perspectives on the Treasury Single Account (TSA) Policy in Nigeria meant to enhance transparency and accountability in cash resources management. Effective cash management is critical in the discharge of government responsibilities of providing security, welfare, infrastructure, goods and services to the populace. The main sources of financing Government activities are from oil revenues, taxes and independent revenues. The TSA policy was necessitated amongst others by lack of transparency and accountability of the cash resources available to government, endemic corruption, unmanageable number of accounts maintained by Ministries, Departments and Agencies (MDAs), growing domestic debt and associated costs, poor budgetary planning and execution, huge shortfall in revenues accruing from oil, etc. There were, however, expression of fears especially from the money deposit banks of loosing huge public sector deposits, which would affect their operations, and lead to eventual job loses. The policy should be seen by many as a political commitment to prudent cash management in order to address the challenges and put government in a better control to deliver goods and services to the citizenry. In spite of the concerns about the negative impacts of TSA policy, the author opines that the benefits are huge and therefore should be pursued vigorously in line with President Muhammadu Buhari’s directive and change agenda.