Treasury Single Account and the Financial Performance of Ministries, Departments and Agencies in Kwara State, Nigeria

The implementation of the Treasury Single Account (TSA) has experienced varying levels of adoption across different government tiers, often facing resistance and negative perceptions among Ministries, Departments, and Agencies (MDAs) regarding its impact on budgetary discipline. The financial performance of MDAs is crucial for achieving improved revenue generation, financial transparency, and accountability, yet low compliance with TSA policies has hindered these objectives.This study investigates the effects of TSA on the financial performance of MDAs in Kwara State, Nigeria, employing a survey research design and purposive sampling techniques to select 14 unit heads from each MDA. Data were collected through structured questionnaires and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings indicate that the unification of government bank accounts significantly reduces financial leakages, enhances transparency, and mitigates financial fraud. Additionally, financial management control techniques positively influence MDAs’ financial performance, with cash consolidation playing a notable role. While account unification positively impacts financial accountability, it remains statistically insignificant (β = 11.8%, p = 0.071). Conversely, financial management control significantly enhances financial transparency (p = 0.000). The study concludes that TSA’s key constructs-bank account unification, financial management control, and cash consolidation significantly impact MDAs' financial performance in Kwara State. These findings align with previous research, reinforcing TSA’s critical role in strengthening financial governance. The study recommends that the government enact further legislation to ensure TSA compliance across all MDAs and enhance its implementation to improve revenue generation, financial accountability, and transparency