Legal overview of Treasury Single Account (TSA), a tool for combating corruption in Nigeria

Abstract

The Treasury Single Account (TSA) is a public accounting system where all government revenues are consolidated into a single account,  and all payments and receipts are processed through this account. This paper examines the legal and institutional framework and overall  efficacy of the TSA in combating corruption within Nigeria's tax regime. It is the responsibility of every administration to ensure accountability and transparency in government revenue generation and expenditure. The TSA system aims to consolidate government  cash balances, minimize fraud perpetration, and block revenue leakages in Nigeria. By exploring the implementation of TSA in Nigeria's  tax administration, this study investigates its effectiveness in addressing challenges such as revenue losses and wastages in government  ministries and agencies. The introduction of TSA has significantly contributed to reducing fraud and consolidating government cash  balances in the country. TSA undoubtedly mitigates corrupt activities in the public sector by promoting accountability and transparency in  public finance management. In order to effectively carry out this study, the paper adopted doctrinal methodology by reliance on  primary and secondary sources to analyze the use of TSA in Nigeria's tax administration. The paper found that there is lack of awareness  on the importance of TSA in government financial management. The paper recommended that regulatory bodies raise awareness about  the importance of TSA implementation across all tiers of government to enhance financial independence and buoyancy. TSA, although  relatively new in Nigeria, was designed to combat corruption in the financial sector and boost the nation's economy through  transparency and accountability in revenue generation. Taxation, a major source of government revenue, has historically suffered from  mismanagement and lack of oversight, particularly among its administrators. The study suggests that the adaptability of the TSA concept  could significantly contribute to curbing corruption in Nigeria's tax administration and other revenue sources. The paper also  recommended for appropriate legislation that would ensure to the effective implementation of TSA.