Impact of Treasury Single Account (TSA) on Public Sector Performance in Nigeria

Abstract

The study examines the impact of Treasury Single Account (TSA) on the performance of public sector in Nigeria. This study primarily examined the extent to which TSA has improved Federally Collected Revenue (FCR) and Federal Government Capital Expenditure (FGCE) of the public sector. Secondary data was source from Central Bank of Nigeria statistical bulletin and economic reports were utilized for this study. The observations were recorded on yearly basis from 2012 to 2019. The data were divided into two periods: Pre TSA period (2012 to 2015) and Post TSA period (2016 to 2019). A pre-post analysis (difference in means test) was carried out using E-view statistical package version 10. The findings show that implementation of TSA has a negative and significant effect on Federally Collected Revenue (FCR). However, further findings revealed that Federal Government Capital Expenditure (FGCE) significantly increased after the implementation of TSA. The study concludes that implementation of Treasury Single Account (TSA) has not improved revenue generation in Nigeria. The study recommends that periodic appraisal of each revenue generating sector should be made so that some sectors that are not performing as they ought to will not feel covered by those that are doing better.