Treasury Single Account Policy and Revenue Generation Among Federal Parastatals in Ekiti-State, Nigeria

Oluyinka Ogungbade,Adebola Daniel Kolawole,Omowumi Olanike Oshatimi

doi:10.5430/ijfr.v12n4p156

Oluyinka Ogungbade, Adebola Daniel Kolawole + Show 1 more

Open Access

https://doi.org/10.5430/ijfr.v12n4p156

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Abstract

Treasury Single Account (TSA) is a new government policy to fight corruption in the Nigerian public sector. The policy has received a lot of compliments from many Nigerians; however, empirical studies have produced mixed results. The study examined the effects of Treasury Single Accounts (TSA) on the revenue generation of federal government parastatals in Ekiti state. The study specifically examined the effect of TSA on revenue generation of Federal University Oye-Ekiti, Federal Teaching Hospital Ido, Federal Road Safety Commission Ado-Ekiti and Federal Polytechnics Ado-Ekiti. Both Descriptive and inferential statistics were used. The descriptive statistics include mean, standard deviation, minimum and maximum while the study employed paired sample t-test for inferential analysis. The study reveals that TSA has not enhanced the revenue generation among federal government parastatals in Ekiti state. The research further shows that TSA is counterproductive since average revenue generated after the implementation of TSA is lower than the average revenue that the parastatals generated before the implementation of TSA. The study recommends that the federal government of Nigeria should investigate the reasons why the TSA is counterproductive in Ekiti state and adequately monitor its implementation.

Highlights

Nigeria is blessed with numerous human and natural resources so much that it is being regarded as the giant of Africa
The study revealed that the implementation of Treasury Single Account (TSA) among federal government parastatals in Nigeria has not considerably improved the revenue generation among the parastatals
The study established that TSA implementation has not brought about any significant improvement in the revenue generation of Federal University Oye Ekiti, Federal Medical Center Ido-Ekiti, Federal Polytechnics Ado-Ekiti and Federal Road Safety Commission Ado-Ekiti

Summary

Introduction

Nigeria is blessed with numerous human and natural resources so much that it is being regarded as the giant of Africa. It is one of the poorest and less-developed nations in the world today as a result of corruption (Eme, Chukwurah, & Emmanuel, 2015). The directive from the federal Government that all government revenues must be paid into the Treasury Single Account (TSA), was in a bid to curtail the prevalent corruption in the country (Eme et al, 2015). Scholars have advocated for the sustainability of TSA having perceived it as a good mechanism for fighting corruption in Nigeria (Ganyam, 2020). Even though TSA has been implemented in developed countries including USA, UK, France, Sweden, India and Indonesia for many decades without generating any tension, it is relatively new in Nigeria, and its implementation generated perceived tensions (Muraina, 2018)

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