Public Funds Management in Nigeria: The Praxis and Prognosis of Treasury Single Account Policy (2015-2019)

Ogwola Idoko Robert

doi:10.11648/j.ajmse.20210601.14

Abstract

The purpose of this paper was to evaluate the impact of implementation of treasury single account (TSA) policy on the economy of Nigeria between 2015 and 2019. Prior to the implementation of the TSA, multiple government’s bank accounts held by its numerous ministries, departments and agencies (MDAs), especially those domiciled at commercial banks were believed to be conduit pipes through which public funds were drained. The argument which analysts had so far canvassed, and which seems to enjoy broad consensus, is that the introduction and implementation of the TSA (as obtainable in other economies such as Britain, US, Australia, Sweden, Cambodia, India, Indonesia, Central African Republic and Guinea Bissau among others) was capable of eradicating or minimising public funds wastage and diversion. Some further opined that TSA has the potential to address government borrowing and maximise the opportunity cost of cash resources. This paper therefore, makes an attempt to evaluate the implementation strategy of TSA and what impacts it has wielded on the economy of Nigeria. This paper also examined whether or not TSA is a potent tool for fostering good governance, transparency and accountability in the management of public funds. The method of research employed was secondary data analysis. The findings showed that the application of TSA in Nigeria was the desire to eliminate financial and economic corruptions characterising the public service in Nigeria, and as a consequence fosters transparency and accountability in the sector. Also it was found that there are some challenges involved in the implementation of the TSA in the country, however, a number of solutions were proposed which include: Using the TSA as both fiscal and monetary policy tools to stimulate growth and development in the nation’s economy, produces and publish statement of accounts of the MDAs at periodic interval for the sake of real transparency, and the need to build synergy amongst the agencies responsible for national data generation and dissemination.

Highlights

An important aspect of government financial administration is the fiscal and monetary policy management dimensions
In every economy the world over, one of the objectives of government financial administration is the facilitation of efficiency and effectiveness in the use of public funds
In order to tame the tide of financial recklessness and waste often occasioned by financial impropriety- which is partly encouraged by multiple accounts held by ministries, department and agencies (MDAs) - the Nigerian federal government tinkered with the idea of Treasury Single Account (TSA) as a more effective policy option capable of retaining enough cash for public expenditure and investment purposes

Summary

Introduction

An important aspect of government financial administration is the fiscal and monetary policy management dimensions. In every economy the world over, one of the objectives of government financial administration is the facilitation of efficiency and effectiveness in the use of public funds. In order to tame the tide of financial recklessness and waste often occasioned by financial impropriety- which is partly encouraged by multiple accounts held by ministries, department and agencies (MDAs) - the Nigerian federal government tinkered with the idea of Treasury Single Account (TSA) as a more effective policy option capable of retaining enough cash for public expenditure and investment purposes. TSA is maintained based on the principle of American Journal of Management Science and Engineering 2021; 6(1): 26-33 unity of cash and unity of treasury. With this unison in focus, government receipts and payments are monitored in a way that transparency and accountability could be guaranteed. TSA is designed to accomplish the following objectives

Objectives

Methods

Discussion

Conclusion