FINANCIAL IMPACTS OF TREASURY SINGLE ACCOUNT ON NIGERIA'S ECONOMIC GROWTH

Abstract

The Treasury Single Account (TSA) policy's financial effects on Nigeria's economic growth are assessed in this study, with particular attention paid to Value Added Tax (VAT), Company Income Tax (CIT), and Petroleum Profit Tax (PPT). The study used ordinary least square  (OLS) regression techniques with ex-post facto data from the Federal Inland Revenue Service. Empirical results revealed that although the TSA policy has effectively prevented public fund leaks and has a positive and significant impact on non-oil collections including VAT and CIT, its influence on PPT is still substantial because of the historical complexity of the oil industry. The study further demonstrates that centralized and transparent cash management improves fiscal accountability and domestic tax mobilization  In the end, the study demonstrates that centralized, transparent cash management improves fiscal accountability and domestic tax mobilization. In order to promote strong, healthy economic growth, it also identifies unwanted side effects, such as decreased commercial banking liquidity, which prompts recommendations for tighter tax compliance and ongoing TSA framework examination. The government must expedite the bureaucratic procedures of fund authorization and cash backing in order to reduce delays in public expenditures that impede economic activity.