THE EFFECT OF TREASURY SINGLE ACCOUNT ON THE ECONOMY OF NIGERIA
Format: Ms Word Document| Pages: 87|Price: N 3,000| Chapters: 1-5
1.1 BACKGROUND OF STUDY
Treasury Single Account (TSA) is one of the financial policies that was invented by the federal government of Nigeria to make strong all inflows such as money and other things from all the ministries, different categories of departments and agencies (MDAs) in the country by way of deposit into Commercial Banks so that it will be noticeable in a single account at the Apex Bank in the country.
Recently in the month of February the central bank of Nigeria distributed a circular to all money deposit banks to implement e-collection platform. This platform is a technology platform deployed by the Federal Government to support the collection and remittance of all government revenue to a Consolidated Account domiciled with the CBN. This marked the beginning of the full implementation of Treasury Single Account (TSA) system in Nigeria.
Going down to section 80 (1) of the 1999 Constitution as amended states “All revenues, or other moneys raised or received by the Federation (not being revenues or other moneys payable under this Constitution or any Act of the National Assembly into any other public fund of the Federation established for a specific purpose) shall be paid into and form one Consolidated Revenue Fund of the Federation”; most governments have continued to operate multiple accounts for the collection and spending of government revenue in flagrant disregard to the provision of the constitution which requires that all government revenues be remitted into a single account.
It was not until 2012 that government ran a pilot scheme for a single account using 217 ministries, department and agencies as a test case. The pilot scheme saved the country about N500 billion in frivolous spending. The success of the pilot scheme motivated the government to fully implement TSA, leading to the directives to banks to implement the technology platform that will help accommodate all MDA’s in the TSA scheme. The recent directives by President Mohammed Buhari that all government revenues should be remitted to a Treasury Single Account is in consonance with this program and in compliance with the provisions of the 1999 constitution.
1.2 STATEMENT OF PROBLEM
Treasury singly account has really become a problem, because it can not really account for the various changes in the agenda as these agendas experience a rapid discontinuous change when there are crises or even during election. As a matter of fact it becomes a problem when new technology emerges.
Most of the money realized from revenue are being paid into multiple accounts that being operated by MDAs in commercial banks obtained under the old constitution which is going against the new Nigerian constitution.
1.3 RESEARCH QUESTION
- Is there any relationship between the treasury single account and the real gross domestic product of Nigeria?
- Does the treasury single account have a negative effect on the economic development of Nigeria?
- What is the guarantee that when all revenue generated paid into a single account will make the economic better?
- Does treasury single account help to monitor fraud in Nigeria?
1.4 RESEARCH HYPOTHESIS
H0: treasury single account has no significant effect on the economic development of Nigeria.
H1: treasury single account has a significant effect on the economic development of Nigeria.
H0: TSA has no significant effect on the GDP of Nigeria.
H1: TSA has significant effect on the GDP of Nigeria
1.5 AIM AND OBJECTIVE OF STUDY
- To investigate the effect of treasury single account on the economy of Nigeria
- To investigate the relationship between treasury single account and the gross domestic product of Nigeria.
- To monitor the impact of treasury single account towards fraud eradication.
1.6 SIGNIFICANT OF STUDY
By the end of the research work, we shall be able to know the effect of treasury single account on the economic development of Nigeria. The research will also show the effect of the treasury single account on the gross domestic product of Nigeria.
1.7 SCOPE OF STUDY
For the purpose of this research, the primary data was obtained through the use of questionnaires and the central bank of Nigeria statistical bulletin while the secondary data was obtained from wiki books, journals and other related articles. The method of chi square and regression was used for the purpose of the analysis.
1.8 DEFINITION OF TERMS
TREASURY SINGLE ACCOUNT: is one of the financial policies implemented by the federal government of Nigeria to consolidate all inflows from all the ministries, departments and agencies (MDAs) in the country by way of deposit into Commercial Banks traceable into a single account at the Apex Bank in the country.
BUDGET: is a quantitative expression of a plan for a defined period of time. It may include planned sales volumes and revenues, resource quantities, costs and expenses, assets, liabilities and cash flows. It expresses strategic plans of business units, organizations, activities or events in measurable terms.
MDA: Nigeria department agencies