Effect of Treasury Single Account (TSA) on the Performance of Ministries, Departments, and Agencies (MDA) in Nigeria

Treasury Single Account (TSA) was institutionalized to hedge financial loopholes, promote transparency, and prevent the mismanagement of government’s revenue by unifying all accounts of the government and preventing mismanagement of revenues by those agencies that generate revenue. The study examined the effect of Treasury Single Account (TSA) on the performance of Ministries, Departments, and Agencies (MDA) in Nigeria. The study used a survey research design and relied on primary data obtained through a questionnaire administered to 81 respondents drawn from MDAs within Anambra metropolis. The data were analysed descriptively and linear regression analysis was used to test the hypotheses. The empirical results showed that there is a significant positive effect of TSA on financial accountability of Ministries, Departments, and Agencies (MDAs); secondly, there is a positive and significant effect of TSA on financial transparency of Ministries, Departments, and Agencies (MDAs). The study concludes by recommending that it is imperative for all MDAs to fully comply with the TSA policy and for the government to enforce strict penalties for noncompliance. In addition, the government should establish a robust monitoring and oversight mechanism to track the inflow and outflow of funds within the TSA. Lastly, to facilitate the effective implementation of the TSA, the government should invest in capacity building and training programs for finance officers within the MDAs. This will enable them to fully understand the operational requirements of the TSA and comply with the established guidelines.