Effects of Treasury Single Account on Public Financial Management in Nigeria

The Treasury Single Account, introduced in Nigeria in 2015 as a public financial management reform, consolidated government revenues from multiple accounts into a unified structure at the Central Bank of Nigeria, with the aim of improving cash management, curbing leakages, and strengthening fiscal transparency. This study evaluates the effects of the Treasury Single Account on public financial management efficiency in Nigeria, using secondary data from the Office of the Accountant General of the Federation, the Central Bank of Nigeria, and the Budget Office of the Federation for the period 2013 to 2023. The study employs pre- and post-implementation analysis using a difference-in-differences approach where applicable, supplemented by descriptive trend analysis of government cash balances, idle funds mobilisation, and bank credit dynamics. The theoretical framework draws on public expenditure management theory and the New Public Management paradigm to contextualise the reform's objectives and outcomes. Existing literature confirms significant initial gains in fiscal transparency and the elimination of multiple idle balances, while also raising concerns about the contractionary effect on commercial bank liquidity following the withdrawal of government deposits. The study evaluates whether these competing effects have been appropriately managed over the implementation period and whether the reform has delivered its intended fiscal efficiency gains in a sustainable manner. Findings are intended for the Office of the Accountant General, the Federal Ministry of Finance, and public financial management reform advocates working across Nigeria's federating units. Keywords: Treasury Single Account, public financial management, fiscal transparency, Nigeria, cash management