Evaluating The Role Of Treasury Single Account In Reducing State Governments’ Fiscal Dependence On Federal Allocations In Nigeria

Efiong, Eme Joel, PhD; Animpuye, Canice; Ogar-Abang, John Oyong, PHD; Akan, Pius Azabeye; Fali, Ibrahim Mallam, PhD

doi:10.63922/ijevss.v4i03.1671

Efiong, Eme Joel, PhD Department of Accounting, Faculty of Administration and Management Sciences, University of Calabar
Animpuye, Canice Department of Accounting, Faculty of Administration and Management Sciences, University of Calabar
Ogar-Abang, John Oyong, PHD Department of Accounting, Faculty of Administration and Management Sciences, University of Calabar
Akan, Pius Azabeye Department of Business Management, Faculty of Administration and Management Sciences, University of Calabar
Fali, Ibrahim Mallam, PhD Department of Accounting, Faculty of Administration and Management Sciences, University of Calabar

DOI: https://doi.org/10.63922/ijevss.v4i03.1671

Keywords: Treasury Single Account, Natural Resources, Revenue Generation, Revenue Leakage, Corruption

Abstract

Nigeria is a country richly endowed with natural resources, ranging from liquid minerals to industrial raw materials, distributed across its 36 states and the Federal Capital Territory (FCT). If these resources are properly harnessed, managed, processed, and commercialized with the revenues transparently accounted for through the instrumentality of the Treasury Single Account (TSA) operated by relevant Ministries, Departments, and Agencies (MDAs) it would significantly empower state governments to execute developmental projects that improve the welfare of their citizens. This, in turn, would substantially reduce the states’ overdependence on monthly federal allocations. This study examines the benefits of the TSA scheme as a panacea for the overdependence of some state governments in Nigeria on federal allocations. A descriptive cross-sectional survey design was adopted, with a study population consisting of 200 heads of finance drawn from MDAs in Cross River State. Using Taro Yamane’s formula, a sample size of 133 respondents was determined and selected through purposive sampling. Data collected via a self-structured questionnaire were analyzed using descriptive statistics and t-test analysis. The findings reveal that the effective exploitation of mineral resources within the states, coupled with the adoption and full implementation of TSA by state governments, holds significant potential for enhancing internally generated revenue and curbing revenue leakages, as indicated by a weighted mean score of 4.20 and a t-calculated value of 24.87. The study recommends, among other measures, that state governments should diversify their revenue sources beyond crude oil and fully institutionalize the TSA scheme across all MDAs to improve fiscal accountability and financial sustainability.

References

Abotsi, L. A., Umagu, U. B., Ayanbeshishie, S. A., & Effiong, S. A. (2023). Inventory Management and Financial Performance: Efficiency Level Investigation of Listed Food & Beverage Manufacturing Companies. Social Science Journal 13, 4854-4863

Adebisi, J.F. and Okike, B.M (2016). The Adoption of the Treasury Single Account (TSA) and its Effect on Revenue Leakages of Nigeria States. American Research Journal of Business and Management. 2; 2379-1047.

Ado, A.B.,Mani,I., Goni, K. & Mustapha, U.A. (2021). Treasury Single Account (TSA) and its Effect on the Nigeria Economy. The Middle East International Journal for Social Sciences (MEIJSS). e-ISSN:2682-8766. 3 (3).

Agba, A. M. O., Ocheni, S. & Nkpoyen, F. (2014). Microfinance credit scheme and poverty reduction among low- income workers in Nigeria. Journal of Good Governance and Sustainable Development in Africa, 2(1).

Ajayi, O J. (2019).Treasury single account and corruption control in Nigeria public sector. CRAWFORD Journal of Business and Social Science (CJBASS). Vol. IX (2). ISSN 2141-9094.

Ajugwe, C. A (2020). A Critical Analysis of Treasury Single Account Policy In Nigeria. International Journal of research and innovation in Social Science (IJRISS) IV; 2454-6186.

Allison, P. and Ndukwe, O. (2021) Towards Achieving Public Accountable in Nigeria Public Sector: The Role of Treasury Single Account (TSA). International Journal of academy accounting, finance and management research (IJAAFMR) 5, 17-24. ISSN: 2643-976 X

Anyadighibe, J. A., Bessong, P. K., Ogar-Abang, J. O., Kankpang, A. K. Nkiri, J. E., Inah, E. U., Etim, I. O., & Nwobodo, C. C. (2025). Inland water transportation attributes and marketing performance of micro-businesses. Edelweiss Applied Science and Technology 9 (1), 719-727.

Anyadighibe, J. A., Kankpang, A. K., Bessong, P. K., Efiong, E. J., & Inah, E. U. (2024). Socio-economic contributions of tourism in the development of hospitality industry. Edelweiss Applied Science and Technology, 8(4), 1472-1482.

Ayoade, A., Adegbola, M., Aladesun, C., Olaniyan, I., & Akinde, B (2020). Effect of Treasury Single Account on Public Funds Management in Government Establishment. International Journal of Academic Management Science Research (IJAMSR) 4 (197-208) ISSN.2643-900X

Bamidele, S., Adesa, R., & Adegbola, O (2020). Adoption of Treasury Single Account in Lagos: Challenges and prospect. Journal of Economic, management and Social Science, 6 (2).

Bassey, G. E., Effiong, S. A., Efiong, E. J., Abotsi, L. A., Williams, A. G., Gilbert, P., ... & Ita, E. U. (2023). Applicability synergy of financial technology and bank performance. Tec Empresarial, 5(2).

Constitution of Federal Republic of Nigeria, 1999 (as amended).

Efiong, E. J., Nkiri, J. E., Unah, S., Akah, G. T. & Fali I. M. (2025). Effect of Accounting Software’s on Business Performance of Manufacturing Companies in Calabar Metropolis, Cross River State. ISRG Journal Economic, Business & Management 3 (4), 42 – 51.

Efiong, J., Efiong, E., Akintoye, O., Inah, E., Awan, O., & Ogban, F. (2024). Geospatial Modelling of Flood Susceptibility of the Calabar City, Cross River, Nigeria. Applied Environmental Research, 46(3).

Ekubiat, J.U and Ime E.E (2016). Adoption of Treasury Single Account (TSA) by State Government of Nigeria: Benefits, challenges and prospect. Journal of Finance and Accounting 4 (3): 126-130. http://www.sciencepublishinggroup.com/j/jfa

Eme, O. I,. and Chukwurah, D.C (2015). An Analysis of Pros and Cons Treasury Single Account Policy in Nigeria. Arabian Journal of Business and Management, 5(4).

Fali,I. M., Nyor, T. & Mustapha, L. O. (2020). Financial Risk and Financial Performance of listed Insurance Companies in Nigeria. European Journal of Business and Management 12 (12), 143- 153.

Grubber, J. (2005). Public Finance and Policy. New York: Work Publications, . 2, ISBN 7167 – 8655- 9, 2005.

Inyang, W., Effiong, C., Usoro, A., Efiong, E., Bessong, P., Oden, E., & Ubi, I. (2024). How social initiatives affect the value of manufacturing companies in Nigeria. Investment Management & Financial Innovations, 21(4), 128.

Kankpang, A. K., Nkiri ,J. E., Mbu-Ogar, G. B. & Lawal, S. G. (2024). Credit Management and profitability of listed manufacturing firms in Nigeria. Nigerian Journal of Management Sciences, 25(1b).

Kankpang, A.K., Ogar-Abang, J.O., Oko, J.O., Animpuye, C. (2024). Human resource cost and profitability of oil companies in Nigeria. Nigerian Journal of Management Science 25 (1), 107 - 113

Lodikero, O., Fagbayimu, M. O., & Olateru-Olagbegi, A. (2018). Treasury Single Account: a tool for accountability and transparency in Ondo State, Nigeria. International Journal of Economics, Commerce and Management, VI(12), 56-71.

Mbu-Ogar, G. B. Nkiri, J. E., Kankpang, A. K., & Ogar-Abang, J. O. (2023). Government accountability, fiscal integrity and voluntary tax compliance: Evidence from Nigerian SMEs. Nigerian Journal of Management Sciences Vol, 24(2a).

Mbu-Ogar, G. B., Ugwoke, R. O., Nkiri, J. E., Eyo, R. E., & Abotsi, L. A. (2024). Corporate Board Diversity and Firm Performance of Companies Quoted on the Nigerian Consumer Goods Sector. Innovations 11963 (79), 1513-1533.

Nkiri, J. E., Kankpang, A. K., & J. I. Otalor (2019). The impact of management information system on the operations of microfinance institution in Calabar metropolis. International Journal of Advancement in Development Studies, 14(1), 208-218.

Nwaorgu, I. A., Ezenwaka, F. A., and Onuorah, J. (2017). Treasury Single Accounting (TSA) and Public Sector Accountability in Nigeria. Journal of Economics, Management and Trade 19(4): 1-8, 2017; Article no.JEMT.37780 ISSN: 2456-9216

Oboh, J. O., Animpuye, C., & Ojeka, O. P. (2024). Stock Price and Firms Attributes of Listed Deposit Money Banks in Nigeria: The Intervening Role of Creative Accounting. International Journal of Research and Innovation in Social Science, 8(7), 3336-3350.

Odetayo, T.A (2017). An Ex-Ray of Treasury Single Account (TSA) for Sustainable Development. CARD International Journal of Management Studies. Business and Enterpreneurship Research. ISSN. 2545-5885.

Ojong, F.E, Ogaboh, A., Eteng, F., Maruf, S., Akimtola, I., & Usung, E. (2021). Treasury Single Account (TSA) and Revolving fund in public institution. Quantitative Economic and Management Studies, 2 (5) https://doi.org/10.35877/454RL.qems376

Okwe M., Chijioke N., Temiloluwa A. and Ogah D. (2015). Treasury Single Account: Giving Life to Jonathan’s ‘dead’ Policy Directives’, Sunday Guardian

Olanipekun, W.D., Brimah, A.N., & Olowodeni, F.M (2005). Treasury Single Account (TSA) A Strategy for Combating Corruption and Achieving Sustainable Development. Journal of Sustainable Development in Africa, 7(5) ISSN. 1520-5509.

Olaoye, F., and Adebowale, O., (2017). An Evaluation of Treasury Single Account (TSA) Effectiveness in selected Federal Institutions. Advance in Social Sciences Research Journal 4 (24)18-28 Dol.10.14738/assrj.424.3952.

Oluyanika. O., Omowumi, O., & Adebola, D., (2021). Treasury Single Account Policy and Revenue Generation among Federal Parastatals in Ekiti State. Nigeria International Journal of Financial Research, 12 (4) https://doi.org/10.5430/ijfr.v12n4p156

Oti P.A., Igbeng, E. & Obim, E.N. (2017). Appraisal of Policy Impact of Treasury Single Account in Nigeria, Research Journal of Finance and Accounting, 7(20), 45-52.

Pattanayak, S., and Fainboim (2010). Treasury Single Account Concept, Design and implementation issues IMF working Paper (wp/10/143)

Pattanayak, S., and Fainboim, I.(2011) Treasury Single Account; An Essential Tool for Government Cash Management Technical Notes and Manuals (TNM/11/04).

Solanke, A. A. (2018). Opinion and perception of treasury single account implementation: implications for revenue generation and utilisation in Nigeria. European Scientific Journal, 14(1), 1-12. Doi: 10.19044/esj.2018.v14n1p164 URL:http://dx.doi.org/10.19044/esj.2018.v14n1p164.

Tanimu, L., Sulaiman, M., & Rabiu, A. (2016). Treasury Single Account and Sustainable Public Expenditure in Nigeria. Journal of Applied Sciences & Environmental Sustainability 2(4) 56-61. e-ISSN 2360-8013

Udo J E and Esera I.E. (2016) “The New Treasury Single Account (TSA) by State Government of Nigeria: Benefit, Challenges and Proposals‟”: Journal of Accounting, 4(3).

Udoma, U.U. (2015). Implementation of TSA and Nigeria economy. Chairman National Planning Commission.Nigeria. (Unpublished paper)

Undie F., Odama, P. O. Akpan, A. E., Animpuye, C., & Rufus, E-U. I. (2025). An Analysis of the Effect of Career Plateau on the Internal Audit Effectiveness of Public Institution in Calabar, Cross River State. ISRG Journal of Economics, Business & Management, 3(1), 143-150.

Ushie, E. M., Agba, A. O, Agba, M. S. Chime, J. (2010). leadership style on employees’ intrinsic job satisfaction in the Cross River State Newspaper Corporation, Calabar, Nigeria. International Journal of Development and Management Review 5 (1), 61-74

Yusuf. A. and Muhammed.S.B. (2016). Treasury single account (TSA) as an effective instrument of financial prudence and management in Nigeria. Journal of Management Technology & Development, 2(2), 89-97