Fiscal and monetary policy outcomes of the treasury single account policy in Nigeria

Abstract

The pervasive corruption and public fund mismanagement led to the introduction and implementation of Nigeria's Treasury Single  Account (TSA) policy. This policy, however, has implications for macroeconomic performance. Hence, this study assessed the behaviour of  selected monetary and fiscal policy indicators in the pre- and post-TSA implementation eras. Findings revealed that government  revenue and expenditure increased post-TSA policy implementation. However, even though the TSA policy narrowed fiscal gaps, it failed  to lower Nigeria’s public debt. Saving and lending rates soared while government deposits in deposit money banks (DMBs) plummeted  post-TSA implementation. The TSA policy was not potent enough to curb corruption in Nigeria. Thus, the Nigerian government needs to  deploy more stringent policies to curb corruption and diversify its revenue portfolio to sufficiently finance its burgeoning fiscal  responsibilities.