EFFECT OF TREASURY SINGLE ACCOUNT ON FINANCIAL MANAGEMENT OF FEDERAL MINISTRIES IN NIGERIA

Abstract

Treasury single account (TSA) was initiated to block financial leakages, prevent mismanagement and promote transparency of government revenue. This study set out to investigate the effect of treasury single account on financial management of federal ministries in Nigeria. The specific objectives were to examine the effect of treasury single account on proper cash management of federal ministries, to assess the role of treasury single account on reducing financial leakages of federal ministries, and to ascertain the impact of treasury single account in enhancing accountability and transparency in federal ministries in Nigeria. Survey research design was adopted using primary data with the aid of a questionnaire distributed to 26 federal ministries. The study adopted three proxies of financial management, which are cash management, revenue leakages, accountability and transparency. It was discovered base on the finding of the study that TSA has a significance effect on financial management proxies combined. The study concluded that treasury single account expectedly improves cash management, revenue leakages, accountability and transparency in the system. Hence Government should embark on massive public campaign enlightenment on the importance of the policy and Government should secure the appropriate legislative measures that will ensure remittances of all government revenue at the local government, state and federal levels into the (TSA) system so that it will drive full implementation in the country.