Sustainable Public Sector Fund Management in Southwest Nigeria: An Evaluation of the Role of Treasury Single Account

Abstract

Purpose: The concerns around the implementation of the Treasury Single Account (TSA) in Nigeria have been on whether it has enhanced proper accountability and financial transparency in the management of public sector funds. Therefore, this study sought to evaluate the influence of TSA adoption on sustainable public-sector fund management in Southwest Nigeria. Design/Methodology/Approach: A descriptive survey design method was adopted involving accountants and revenue officers in the state Accountant-General offices and the Internal Revenue Agency, respectively, in the Nigerian southwestern states. The Taro Yamane formula yielded the required sample size of 340, and primary data were collected on the study variables using a structured 5-point scale questionnaire. The Partial Least Squares Structural Equation Modelling (PLS-SEM) technique was used for the parameter estimates and the test of validity and reliability using the Cronbach’s alpha and composite reliability statistics, Fornell-Larcker criterion, cross-loadings, and the Heterotrait-Monotrait (HTMT) ratio. Findings: Results from the analysis showed that the main TSA exerts a significant impact on accountability and financial transparency in public sector fund management. Similarly, the subsidiary TSA significantly affects accountability and financial transparency in public-sector fund management. The findings established TSA as a key determinant of accountability and financial transparency in public sector fund management. This authenticates the adoption of TSA as an innovation in public-sector finance that drives sustainable fund management. Research Limitation: The data for the study were sourced only from the Accountant-General's offices and state internal revenue agencies across southwest Nigeria. Practical Implication: The findings highlight the potential of the Treasury Single Account in advancing accountability and transparency in public sector fund management. Social Implication: This underscores the adoption of TSA principles as a core policy thrust for achieving sustainable fund management across all tiers of government in Nigeria. Originality/ Value: This study demonstrated that sustainable fund management in the public sector is associated with innovations such as the Treasury Single Account, which has a positive and significant impact on public fund management.