TREASURY SINGLE ACCOUNT CONSEQUENCES FOR THE nigerian BANKING SECTOR AND ECONOMY
TREASURY SINGLE ACCOUNT CONSEQUENCES FOR THE NIGERIAN BANKING SECTOR AND ECONOMY
The purpose of this study was for the researcher to determine how the Treasury Single Account (TSA) would affect Nigeria's banking industry and overall economy. Data from both primary and secondary sources was sorted in order to meet the predetermined goal.
In order to help the researcher reach relevant results, questionnaire items were created from the research questions. The chi-squared was used in this study's data analysis tool.
The Treasury Single Account (TSA) has been found to have no appreciable negative effects on the Nigerian banking industry, according to data received from the respondents and computations (basic percentage and chi-square).
Treasury Single Account (TSA) has a substantial impact on economic growth, as well. By enabling effective financial control and management within the government's ministries, departments, and agencies, it actually reduces corruption and improves openness in governmental operations.
Therefore, it was advised that the Federal Government and the Central bank of Nigeria adopt policies to direct the efficient operation of the Treasury Single Account (TSA) and the financial affairs of the Nigerian economy.
The Federal Government's departments, agencies, and ministries should all agree to the project's terms in order to effectively manage the nation's financial resources.
1.2 STATEMENT OF THE PROBLEM
Banks won't have enough money to effectively manage their daily operations when the federal government implements the treasury single account (TSA) regulation.
Prior to now, the government, industry, and general public were the main sources of funding for banks. Banks will keep looking for ways to get money from the public or the private sector.
Because banks in Nigeria have relied on government funds to operate, the introduction of treasury single accounts (TSA) would require those funds to be transferred into the national treasury account,
which would have a detrimental effect on banks. The funds deposited into the Treasury are used to evaluate the performance of the government.
Since the advent of the treasury single account, the period in which banks were dependent on public revenues has passed. In Nigeria, banks ought to be forced to find alternative sources of revenue. Banks' shortage of resources will lead to an improvement in customer service, but it will also give rise to staff competition among banks.
The federal government's implementation of the Treasury Single Account (TSA) programme has increased the unemployment rate in Nigeria. Okafor (2013) revealed that the Nigerian banking industry faces problems with human resources,
while Matannu (2015), quoted in Idowu (2005), identified a chasm between the necessary principles of job security and the immediate or short-term effects of economic changes. He came to the conclusion that reforms' potential to generate jobs over the previous ten years had been exceedingly scarce.
Adeyeme (2007) further stated that job losses would arise from banking reforms like Nigeria's treasury single account. The government's adoption of the Treasury Single Account (TSA) policy will result in an increase in the interest rate on deposits.
Anyanwu (2010) brought attention to the difficulties facing modern banking. In his study, he lists the unfavourable macroeconomic environment, onerous documentation procedures, inadequate long-term financing, a lack of borrower data, and poor infrastructure due to banks' low liquidity. As a result, banks must entice the public by raising interest rates on deposits.
As a result of the consolidation of banks in Nigeria, Zubairu (2006) found issues with monitoring and supervision, stakeholder concern, technological integration, and realignment of human resources.
The day when banks hired women exclusively to mobilise deposits and forced them to use any methods necessary to obtain money is returning. In light of the aforementioned, the study will evaluate the effects of Treasury Single Accounts on the Nigerian banking industry.
1.3.1 OBJECTIVES OF THE STUDY
The study's goals are listed as follows:
i. To investigate the effects of Treasury Single Account on Nigeria's banking industry.
ii. To investigate the impact of the Treasury Single Account on Nigeria's economic progress.
iii. To list the advantages of a Treasury Single Account.
1.4 RESEARCH QUESTIONS
What effects would the Treasury Single Account have on Nigeria's banking industry?
What effects will Treasury Single Accounts have on Nigeria's Economic Development?
What advantages does a Treasury Single Account offer?
1.5 RESEARCH HYPOTHESIS
The following hypotheses are presented here.
1 H0: There is no substantial connection between Nigeria's banking industry and treasury single accounts (TSA).
H1: The Nigerian banking industry and treasury single accounts (TSA) have a substantial association.
2 H0: The treasury single account (TSA) and Nigerian economic growth are not significantly related.
H1: There is a considerable connection between economic progress and treasury single accounts (TSA).
3 H0: The broad Nigerian population does not significantly benefit from Treasury Single Accounts (TSA).
H1: Treasury single accounts (TSAs) and the general public both stand to gain significantly.