What is TSA and how does it affect the Nigerian economy?

If you are interested in your country’s economy, you might be interested to learn more about the Treasury Single Account in Nigeria. Most of the literature on the topic usually focuses on the benefits of TSA Nigeria, but the same cannot be said about ours. Check out this article, where we will talk about the TSA meaning, its advantages and disadvantages. Nothing will be left untouched.

What is Treasury Single Account?

So what is TSA exactly? It is a public accounting system, the purpose of which is to manage the government revenue and ensure that the payments come through the Consolidated Revenue Account (CRA) of the CBN (Central Bank of Nigeria). It was introduced in 2012 as a trial project and began its operation in 2015.

It covers all of the existing Ministries, Departments and Agencies (MDAs). However, companies in the oil and gas industry, as well as other joint venture partners’ accounts, are excluded from the TSA’s responsibilities.

One of the main reasons for the introduction of the TSA was to battle corruption in the country and make sure that government payments were transparent. In less than a year, this system has allowed the country to take control of ₦3 trillion in cash assets. But that is not the only advantage of it. Continue reading to find out more.

Advantages of Treasury Single Account

READ ALSO: Treasury single account in Nigeria - 10 benefits

The introduction of the TSA has borne numerous benefits for the Nigerian government and the economy as a whole. We have already mentioned one advantage, but there are at least nine more. Let’s consider all of them:

Disadvantages of Treasury Single Account

As they say, nothing is perfect. Despite all of its advantages, TSA still has a few flaws. Here are a few of them:

And now you know all there is to know about the TSA account in Nigeria. As you can see, it is a great system, but it is definitely not perfect. We hope our article has helped you shape your own opinion on this topic.

READ ALSO: What is the biggest obstacle to saving and investing money?

Related news