Treasury Single Account: A Tool for Effective Cash Management in Nigeria
Journal of Finance and Accounting
Volume 4, Issue 6, November 2016, Pages: 328-335
Received: Sep. 23, 2016; Accepted: Oct. 7, 2016; Published: Nov. 1, 2016
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Author
Philip Olawale Odewole, Department of Management and Accounting, Obafemi Awolowo University, Ile-Ife, Nigeria
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Abstract
The Treasury Single Account is a financial tool that unifies all government accounts in a single pool for effective cash management. It ensures that all tax and non-tax revenues are collected from all sources and payments due are made correctly in a timely manner and that government’s cash balances are optimally managed to reduce borrowing costs.TSA was introduced to bring an end to the fragmented multiple accounts kept by all Ministries, Departments and Agencies. The objective of this paper is to examine the effectiveness of the TSA as a tool for effective cash management. The research examines the objectives and benefits of TSA as a catalyst for public financial management in Nigeria. It highlights the emerging issues in TSA implementation, its operational guidelines and essential requirements of the TSA in federating states and the stakeholders responsibilities in the operation of the policy .The paper also discusses the various operational challenges facing the implementation of TSA in Nigeria and concluded that TSA as a financial tool can only achieve its desired objectives in blocking loopholes of wastages and leakages ,curbing corruption and financial recklessness in ranks and file of government functionaries and enthroning transparency and probity, if government put in place enabling environment and adequate legislative supports for the smooth implementation of the policy with minimum infrastructural and technological facilities needed by the MDAs for meaningful compliance. Only gradual implementation of TSA policy can serve as a catalyst and a tool for effective cash management in Nigeria.
Keywords
Treasury Single Account(TSA), Cash Management, Public Fund and Revenue Leakages
To cite this article
Philip Olawale Odewole, Treasury Single Account: A Tool for Effective Cash Management in Nigeria, Journal of Finance and Accounting. Vol. 4, No. 6, 2016, pp. 328-335. doi: 10.11648/j.jfa.20160406.13
Copyright
Copyright © 2016 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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