Impact of Treasury Single Account on Government Revenue and Economic Growth in Nigeria

Abstract

The Treasury Single Account (TSA) is one of the reforms of financial management that has been introduced in the public services to bring financial discipline into the system. The TSA has been in implementation since 2015 by the present administration led by President Muhammadu Buhari. The intention is to control financial mismanagement which will as a result improve government revenue and economic growth, stakeholders, researchers and the general public are interested to know the extent to which these objectives have been achieved. This study has examined the extent to which TSA has improved Federally Collected Revenue (FCR) and Gross Domestic Product (GDP) of the economy. Secondary data sources from Central Bank of Nigeria statistical bulletin and economic reports were used for the study. The observations were recorded from 2010 to 2019. The data is divided into pre-TSA and post-TSA. Analysis shows that the implementation of TSA has a negative and significant impact on FCR . However, findings revealed that GDP of the country significantly increased after the implementation of TSA. It is recommended that periodic checking of each revenue generating sector such that leakages can be reduced to lowest and also identify those agencies of the Government that are not performing optimally, or doing better than they ought to have done.