ABSTRACT

The study on the effect treasury single account on financial embezzlement in Nigeria public sector aimed at to determine the effect of treasury single account on financial leakage in the Nigeria public sector; to find out ways of detecting and controlling fraud in the Nigeria public sector; to investigate on the factors affecting the implementation of treasury single account in the Nigeria public sector. The study made use of primary data which are gotten from the distribution of the research questionnaires; the sample size for the study is 32. The study made use of the Pearson correlation method for the analysis. The study therefore concluded that there is significant relationship between TSA and financial embezzlement in the Nigeria public sector. The study also made useful recommendation to assist the federal government in decision making.

CHAPTER ONE

1.0 INTRODUCTION

1.1 BACKGROUND OF STUDY

The public sector of Nigeria is one of the major contributor to the growth and development in Nigeria; although there have been so many reforms and policies since 1952; most of the public sectors in Nigeria did not survive the experiences from such reforms and policies. The economics and financial status of most countries especially the developing nations depends on the level of stability in the public sectors; that’s to say that the performance of the public sector has a significant effect on the economy of the nation.

Before the introduction of treasury single account in Nigeria, MDA which normally generates revenue have numerous accounts in commercial banks, they use part of the revenue generated to fund their various and operations and remit the excess to the federation of account.

Most of these agencies pay whatever they deem fit the federal government account; it is evident that most of these agencies or ministries are even richer than the government. The outcome of the above occurrences leads to financial leakages, the embezzlement of public funds; this made the federal government of Nigeria to prepare budget using false projection.

The above situation was what led to the introduction of the government treasury single account; on the 25th February, 2015, the president of Nigeria instructed that all the ministries should close their account with all the commercial banks in Nigeria, and transfer the various balances into federation account with the central bank of Nigeria.

The implementation of government treasury single account has affected the performance of the public sectors in Nigeria; the effect is noticed in the area of employment. The adoption of the TSA is in the greater interest of the states, as it will pave the way for the timely payment and capturing of all government revenue in a single government treasury account, without the intermediation of multiple banking arrangements as had been the case. Moreover, embracing the scheme can help reduce the mismanagement of public funds by revenue-generating agencies, as well as check excess inflation, high interest rates and round-tripping of the government deposits. It is to this regards that the study wishes to audit the treasury single account in Nigeria, run a comparative analysis on the performance of the public sector before and after the implementation of treasury single account in Nigeria

1. STATEMENT OF RESEARCH PROBLEM

The treasury single account have gone a long way in the reduction of fraudulent activities like financial embezzlement in the Nigeria public sectors at the same time it has created worries and a lot of anxiety by its implementation some of this anxieties include, Job losses, limitation of access to free money, increase in borrowing by the central bank of Nigeria (CBN). The level of liquidity of most commercial banks has been reduced drastically during the implementation; the bank asset was estimated to about N14 trillion with most of the government funds at the rate of 10 to 15 percent and a credit reserve of ratio of  about 30 to 31 percent. Now if for instance the bank have about N9.6 trillion to lend; with the implementation of the TSA, the bank will pay in about N2 trillion into the treasury single account which will in turn reduce the total amount owned by the bank to about N7.6 trillion; this gap will cause liquidity crunch and difficulties. Secondly most money looters in the federal government will have no free money to loot.

1.3 AIMS AND OBJECTIVES OF STUDY

The main aim of the research work is to determine the effect treasury single account on financial embezzlement in Nigeria public sector. Other specific objectives of the study are:

1. to determine the effect of treasury single account on financial leakage in the Nigeria public sector
2. to find out ways of detecting and controlling financial embezzlement in the Nigeria public sector
3. to investigate on the factors affecting the implementation of treasury single account in the Nigeria public sector
4. to proffer solution to the above stated problems

1.4 RESEARCH QUESTION

The study came up with research question so as to be able to ascertain the above stated objectives of the study. The research questions for the study are:

1. What is the effect of treasury single account on financial leakage in the Nigeria public sector?
2. What are the ways of detecting and controlling financial embezzlement in the Nigeria public sector?
3. What are the factors affecting the implementation of treasury single account in the Nigeria public sector?

1.5 STATEMENT OF RESEARCH HYPOTHESIS

Hypothesis 1

H0: There is no significant relationship between TSA and financial embezzlement in the Nigeria public sector

H1: There is significant relationship between TSA and financial embezzlement in the Nigeria public sector

Hypothesis 2

H0: the role of TSA in the regulation of public finance is low

H1: the role of TSA in the regulation of public finance is high

1.6 SIGNIFICANCE OF STUDY

The study will be of immense benefit to the federal government of Nigeria, students, researchers and the central bank of Nigeria as it will discuss the effect of TSA on financial embezzlement in the Nigeria public sector, the study will also discuss the effect of TSA on the regulation of public finance in Nigeria. Finally the study will contribute to the body of existing literature and knowledge in this field of study and provide a basis for further research

1.7 SCOPE OF STUDY

The study will focus on the effect of treasury single account on financial embezzlement in Nigeria public sector for a period of four years (2012-2016); it will cover the effect of TSA on financial embezzlement in the Nigeria public sector, the study will also discuss the effect of TSA on the regulation of public finance in Nigeria

1.8 LIMITATION OF STUDY

FINANCIAL CONSTRAINTS: financial constraints tends to impede the speed of the research student to buy materials and visit other areas of the federal government sector to get information and other materials concerning the research topic but the researcher was able to get meaningful information concerning the research topic.

TIME CONSTRAINTS: this researcher still being a student must be involved in one or two departmental activities like seminar presentation, submission of assignment, attendance to lectures etc but the researcher was able to meet up with the time allocated for the completion of the research work.

1.9 DEFINITION OF TERMS

TSA: is a financial policy introduced by the federal government of Nigeria in 2012 to consolidate all inflows from the country's ministries, departments and agencies (MDAs) by way of deposit into commercial banks, traceable into a single account at the Central Bank of Nigeria.

FRAUD: wrongful or criminal deception intended to result in financial or personal gain.

EMBEZZLEMENT: Embezzlement is the act of withholding public sector finance for the purpose of conversion of such assets, by one or more persons to whom the assets were entrusted, either to be held or to be used for specific purposes.

REFERENCES

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