IMPACT OF TREASURY SINGLE ACCOUNT (TSA) ON BANK PERFORMANCE IN NIGERIA

Abstract This study impact of treasury single account (TSA) on bank performance in Nigeria. The objectives of the study are: to assess the causal relationship between the implementation of the TSA and bank performance and productivity in Nigeria, to identify the specific channels through which the TSA has impacted bank performance and productivity, to evaluate the effectiveness of the TSA in achieving its stated objectives, such as improving government revenue collection, reducing corruption, and enhancing financial transparency, to assess the potential costs and benefits of the TSA for Nigerian banks and the overall economy. The study adopted four research questions and four hypotheses, also this study made use of CBN Statistical bulletin, econometric technique of Ordinary Least Squares (OLS) The Augmented Dickey Fuller test was used in the study to check for unit root. The ADF result showed from the Granger causality result in the table above indicate that no significant causality relationship exist between Treasury single account and Return on Asset (Bank Performance) which means that treasury single account does not Granger cause return on asset because the probability value is (0.6046) is greater than 0.05, there is channels through which the TSA has impacted bank performance and productivity over the period under study and there is a effectiveness of the TSA in achieving its stated objectives, such as improving government revenue collection, reducing corruption, and enhancing financial transparency. On the bases of the foregoing, the study recommends that deposit Money Banks should position themselves and initiate policies that will counter the negative effect of the TSA on their operations in the long run as given in the short period after its implementation may not depict a true picture, the banks should avoid over-reliance of government funds and source for funds from other sectors of the economy and Rural banking should be aggressively undertaken to mobilize funds from the un-banked among rural dwellers.