Implications of Treasury Single Account on Banking Sector of Nigeria and the Economy as a Whole
Chapter One
OBJECTIVE OF THE STUDY
The following are the objectives of this study:
- To examine the implications of Treasury Single Account on the banking sector in Nigeria.
- To examine the implications of Treasury Single Account on the economic development in Nigeria.
- To identify the benefits of Treasury Single Account.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
INTRODUCTION
President of Nigeria, Muhammad Buhari’s directive to all federal Ministries, Departments and Agencies (MDAs) to start paying all government revenues, incomes and other receipts into a unified pool of single account with the Central Bank of Nigeria (CBN), is a bold and highly commendable move directed at one of the bastions of corruption in the polity, namely, public institutions. Apparently, a master stroke against a tactless financial strategy emanating from an unholy alliance between banks and MDAs, the current implementation of this unified accounting structure, rightly called the Treasury Single Account (TSA), is laden with high expectations of economic prospects owing to its possibility of ensuring transparency and accountability. The TSA is a unified structure of government bank accounts enabling consolidation and optimal utilisation of government cash resources. Through this bank account or set of linked bank accounts, the government transacts all its receipts and payments and gets a consolidated view of its cash position at any given time. The former Accountant-General of the Federation (A.G.F), Jonah Otunla, also backed the implementation of TSA stressing that it would bring about transparency, efficiently and accountability. This is because TSA is bound to improve transparency and accountability in public finance management. First, it will remove that organisational secrecy around the management of public finances. The discretionary aspect of accounting officers and politicians collaborating to do all manner of business with government finances before executing projects thereby causing delays or negotiating interest rates with banks for private gains will be over. The second is that revenue generating agencies that have been depriving the Treasury of due revenue through a plethora of bank accounts under their purview and which is not known to the authorities will no longer be able to defraud the revenue since all funds will be swept into the TSA. Thus, beyond transparency and accountability, the TSA will introduce economy and efficiency into overall management of public finances and this will in the long run lead to effectiveness of government spending since it places government in a better position to realise overall policy goals. (Okechukwu, Chukwurah , Daniel, & Iheanacho, 2015). According to the former A.G.F prior to TSA, Nigeria had fragmented banking arrangements for revenue and payment transactions. He stated that, “There were more than 10,000 bank accounts in multiple banks, which made it impossible to establish government consolidated cash position at any point in time. It led to pockets of idle cash balances held in MDAs’ accounts when government was out borrowing money.” (Obinna,2015:52) The idea of treasury single account came into being when some agencies refused to declare and remit the 25 percent of their annual revenue they generated to the treasury as demanded by law. In 2012 about N120 billion was forcefully collected by government from MDAs being 25 percent of their gross revenue to the treasury with another N34 billion collected in 2013. Before then, most of the MDAs were reluctant to remit the requested amounts by law to the treasury.
CHAPTER THREE
RESEARCH METHODOLOGY
Research design
The researcher used descriptive research survey design in building up this project work the choice of this research design was considered appropriate because of its advantages of identifying attributes of a large population from a group of individuals. The design was suitable for the study as the study sought to implications of treasury single account on banking sector of Nigeria and economy as a whole
Sources of data collection
Data were collected from two main sources namely:
(i)Primary source and
(ii)Secondary source
Primary source:
These are materials of statistical investigation which were collected by the research for a particular purpose. They can be obtained through a survey, observation questionnaire or as experiment; the researcher has adopted the questionnaire method for this study.
Secondary source:
These are data from textbook Journal handset etc. they arise as byproducts of the same other purposes. Example administration, various other unpublished works and write ups were also used.
CHAPTER FOUR
PRESENTATION ANALYSIS INTERPRETATION OF DATA
Introduction
Efforts will be made at this stage to present, analyze and interpret the data collected during the field survey. This presentation will be based on the responses from the completed questionnaires. The result of this exercise will be summarized in tabular forms for easy references and analysis. It will also show answers to questions relating to the research questions for this research study. The researcher employed simple percentage in the analysis.
DATA ANALYSIS
The data collected from the respondents were analyzed in tabular form with simple percentage for easy understanding.
A total of 133(one hundred and thirty three) questionnaires were distributed and 133 questionnaires were returned.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was on implications of treasury single account on banking sector of Nigeria and the economy as a whole. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of treasury single account on the economy of Nigeria
Summary
This study was on implications of treasury single account on banking sector of Nigeria and the economy as a whole. Three objectives were raised which included: To examine the implications of Treasury Single Account on the banking sector in Nigeria, to examine the implications of Treasury Single Account on the economic development in Nigeria, to identify the benefits of Treasury Single Account. In line with these objectives, two research hypotheses were formulated and two null hypotheses were posited. The total population for the study is 200 staff of CBN in Akwa Ibom state. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made human resource managers, accountants, customer care officers and junior staffs were used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies.
REFERENCES
- Adeolu I.A. (2015). Understanding The Treasury Single Account (TSA) System –Things You Should Know. Business & Economy, Market Development.
- Bhatti, M. A., Hee, H. C., &Sundram, V. P. K. (2012). A guide for beginners: Data analysis using SPSS and AMOS. Kuala Lumpur: Pearson Malaysia SdnBhd.
- CBN (2015). “Revised Guidelines for compliance with Treasury Single Account by Banks in Nigeria”.
- Guardian Editorial,(2015). Buhari on Treasury Single Account, Guardian, August 28, P16.
- Hamisu, M. (2015). “MDAs, banks under pressure as TSA deadline ends” Daily Trust, September 14, P3.
- Jegede, M. (2015). Buhari and the Treasury Single Account, Daily Trust, September27, P22.
- Obinna, C.(2015), Banks Face Liquidity Strain as FG Fully Enforces Treasury Single Account, Thisday Monday, 11 August,P52
- Okechukwu .E, Chukwurah .I, Daniel C. &Iheanacho. N, (2015). “an analysis of pros and cons treasury single account policy in Nigeria”. Arabian Journal of Business and Management Review (OMAN Chapter) Vol. 5, No.4;
- Okwe, M. (2015). Treasury Single Account: Giving Life To Jonathan’s ‘Dead’ Policy Directives, Guardian Sunaday, 16August,P14. Vanguard Editorial,(2015). Buhari on Treasury Single Account, Vanguard, August 28, P6.
- Adeolu I.A. (2015). Understanding The Treasury Single Account (TSA) System –Things You Should Know. Business & Economy, Market Development.
- Bhatti, M. A., Hee, H. C., &Sundram, V. P. K. (2012). A guide for beginners: Data analysis using SPSS and AMOS. Kuala Lumpur: Pearson Malaysia SdnBhd.
- CBN (2015). “Revised Guidelines for compliance with Treasury Single Account by Banks in Nigeria”. Guardian Editorial,(2015). Buhari on Treasury Single Account, Guardian, August 28, P16.
- Hamisu, M. (2015). “MDAs, banks under pressure as TSA deadline ends” Daily Trust, September 14, P3.
- Jegede, M. (2015). Buhari and the Treasury Single Account, Daily Trust, September27, P22.
