International Journal of Research and Innovation in Social Science (IJRISS) | Volume VI, Issue VI, June 2022 | ISSN 2454–6186
Treasury Single Account and Sustainable Development of Deposit Money Banks
Egolum, Priscilla Uchenna, PhD; Iliemena, Rachael Okwudili, PhD; Ezeh Augustina A.
Department of Accountancy, Faculty of Management Sciences, Nnamdi Azikiwe University
Correspondence
Abstract: In this study, we empirically examined the adoption of treasury single account (TSA) as an accounting practice for sustainable growth and development and its long term effect on selected quoted deposit money banks in Nigeria in relation to sustainability. The specific objectives examined how the adoption of TSA has affected return on equity, return on assets and earnings per share of the bank using ex-post facto research design on audited annual reports. Convenience sampling was used to select 10 (ten) banks based on financial statements availability, out of 15 deposit money banks listed on Nigeria Stock Exchange, from 2011 to 2015 (before adoption) and from 2016 to 2020 (after adoption). Formulated hypotheses were tested using t-test statistics and evidence revealed that the adoption of TSA significantly improved return on equity, return on asset and earnings per share of the banks. Thus, it is recommended that TSA compliance should be encouraged and sustainably maintained by the Nigerian deposit money banks as it promotes transparency, accountability and good governance without compromising the continuous growth of the banks.
Keywords: Remita payment, consolidated revenue fund (CRF), ROE, ROA, EPS, and sustainability.
I. INTRODUCTION
In a global context, the problem of lack of accountability and transparency in governance presents an ongoing discussion topic because of its importance in ensuring optimal route for sustainable growth and development of public institutions. Regrettably, public institutions are deep-sunk in corruption; and poor governance is rampant which resulted to weak controls. Treasury single account has been coherently recognized in recent literature on finance, accounting, economics and management, a relevant innovation for sound financial management in Nigerian Ministries, Departments and Agencies (MDAs). It is generally seen as one of the most essential drivers that contribute to the improvement of MDAs and value generation in the economy. Treasury Single Account (TSA) is a merged form of government bank accounts which enables the consolidation and deployment of government cash resources from a single vault using Remita e-collection for pooled collection and remittances of all federal government revenue to a consolidated account domiciled with the Central Bank of Nigeria (CBN).