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          Treasury single account is a public accounting system under which all government revenue, receipt and income are collected into one single account, usually maintain by the country central bank and all payments done through this account as well. The purpose is primarily to ensure accountability of government revenue, enhance transparency and avoid misapplication of public funds. The maintenance of Treasury Single Account will help to ensure proper cash management by eliminating idle funds usually left with different commercial banks and in a way enhance reconciliation of revenue collection and payment (Adeolu, 2015).

Section 50 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 consolidation Revenue fund of the federation”;successive government 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 revenues be reminded into a single account. It was not until 2012 that government ran a pilot scheme for a single account using 217 ministers department and agencies as a test case. The pilot scheme save Nigeria about N500 billion in frivolous spending. The success of the pilot scheme motivated the government to fully implement TSA, leading to the directives to bank to implement the technology platform that will help accommodate the TSA, leading to the directives to bank to implement the technology platform that will help accommodate 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 programme and in compliance with the provisions of the 1999 constitution (CBN,2015).

The central Bank has opened a consolidated Revenue Account to receive all government revenue and effect payment through this account. This is the Treasury Single Account, All ministries, department and Agencies are expected to remit their revenue collections to this account through the individual commercial Banks who act as collection account for ministries, Departments and Agencies but all monies collected by these will have to be remitted to the consolidated Revenue Account with the CBN at the end of every banking day. In other words ministries, Departments and Agencies account with money deposited to the bank must be zerorized at the end of every banking day by a complete remittance to the Treasury Single Account of all revenues called. The implication is that banks will no longer have access to the floats provided by the accounts they maintained for the Ministries, Department and Agencies. Different types of account could be maintained under a Treasury Single Account arrangement and these may include the TSA main account, subsidiary or subaccounts, transactions accounts and zero balance accounts. Other type of accounts that could be operated includes Imprest accounts, transit accounts and correspondence accounts. These accounts are maintained for transaction purpose for funds flowing in and flowing out of the Treasury Single Accounts (Adeolu, 2015). From the foregoing, It is obvious that the primary benefits of a Treasury Account is the mechanism it provides for proper, monitoring of government receipt and expenditure. In the Nigeria case, it will help to block most of the growth of the economy. We have a situation where some ministries, department and agencies manage their finance like Independence Empire and remit limited revenue to government treasuries. Under a properly run Treasury Account, this is not possible as agencies of government are meant to spend in line with duly approved budget provisions. The maintenance of a single account for government will enable the ministry of finance monitor and flow as no agency of government is allowed to maintain any operational bank account outside the oversight of the ministry of finance.

As a matter of fact, deposit money banks stand to lose immensely from the implementation of Treasury Single Account. This because of the fact that public sector fund constitute a large chunk of commercial deposit. Indeed, it is estimated that commercial banks hold about 2.2 trillion public sector fund at the beginning of sector quarter of 2015. The impact of this amount of money leaving the system can be imagined when one consider s the fact that each time the monthly federal allocation is released the banking system is usually washed with liquidity tightens again with interbank rate going up. Of major impact will be the movement of funds of revenue generating parastatals such as the NNPC, out of commercial banks.


As the federal government of Nigeria introduces Treasury Single Account, banks will continue to device means of mobilization funds from the private sector. We see a return of the era when women are employed by banks specifically for deposit mobilization and tacitly encourage using any means necessary to get funds. We see increase in deposit interest rate as a major means of inducing customer and most importantly we see a drop in lending and in the profitability of banks at least, in the short to medium term with the impact of then policy and begin to properly position themselves for the banking business. Ultimately, we see the share price in the policy impact. However, the implementation of this programme is a critical step towards curbing corruption in the banking sector and public finance. This is a tool to combat corrupt practices, eliminate indiscipline in public finance and ensure adequate fund flow that will be channeled to critical sectors of the economy to catalyze development


  1. What are the implications of Single Treasury Account on the banking sector in Nigeria?
  2. What are the implications of Treasury Single Account on the economic development in Nigeria?
  3. What are the benefits of Treasury Single Account?


The following are the objectives of the study:

  1. Investigate the effects of Treasury Single Account (TSA) on the bank liquidity in the banking industry of Nigeria.
  2. Investigate the effects of Treasury Single Account (TSA) on job security in the banking industry in Nigeria.
  3. Investigate the effects of Treasury Single Account (TSA) on job profitability in Nigeria.



The under listed hypothesis are hereby formulated.

  1. H0: there is no significant relationship between Treasury Single Account (TSA) and banking sector in Nigeria.

H1: there is a significant relationship between Treasury Single Account (TSA) and banking sector in Nigeria.

  1. H0: there is no significant relationship between Treasury Single Account (TSA) and economic development in Nigeria.

H1: there is a significant relationship between Treasury Single Account (TSA) and economic development in Nigeria.

  1. H0: there is no significant relationship between Treasury Single Account (TSA) and the general Nigerian Public.

H1: there is a significant relationship between Treasury Single Account (TSA) and the general Nigerian Public.


The following are the significance of the study:

  1. The result from the study will educate the general public on the benefits of Treasury Single Account to the economy of the country. It will also educate on its temporary effects on the effect on the banking industry as huge sum of money will be leaving the sector suddenly.
  2. This research will also serve as a resource base to other scholars and researchers interested in carrying out further research in this field subsequently, if applied will go to extent to provide new explanation to the topic.


Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (Internet, questionnaire and interview).

The researchers will simultaneously engage in the study with other academic work. This consequently will cut down on the devoted for the research work.


TREASURY SINGLE ACCOUNT: Is one of the financial policies implemented by the federal government of Nigeria to consolidate all inflows from all Ministries, departments and Agencies (MDAs) n 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, resources quantities, costs and expenses assets, liabilities and cash flows. It expresses strategic plans of business units, organizations, activities or events in measurable terms.

NDA: Nigeria Department Agencies

MOF: Minister of Finance.


This research work contains five chapters which is further divided into five chapters in which chapter one examines the introduction of the study, statement of the problem, research questions, objectives of the study, research hypothesis, significance of the study, scope of the study, definition of terms and organization of the study.

Chapter two entails .the literature review of the study, conceptual approach, theoretical framework and empirical review.

Chapter three contains the research methodology, source of data, population of the study, sampling size, method of data collection, method of data analysis and limitation to the study.

Chapter four consists of presentation, analysis and interpretation of data.

Chapter five covers the summary, conclusion and recommendation of the study.


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