Treasury Single Account and Tax Revenue in Nigeria: Comparative Analysis of Pre- and Post-Implementation Periods

This study investigates the impact of the Treasury Single Account (TSA) on tax revenue in Nigeria, specifically focusing on oil tax revenue (OTR) and non-oil tax revenue (NTR) across pre- and post-TSA implementation periods. Utilizing quarterly data from 2008 to 2022, the research employs both parametric and non-parametric statistical methods. The student’s t-test analyzes changes in OTR, while the Mann-Whitney U test evaluates variations in NTR. Findings reveal a significant decline in OTR by 29.49% post-TSA, suggesting adverse effects of the policy on oil revenue. Conversely, NTR increased by 119.38% post-TSA, reflecting enhanced revenue diversification and improved non-oil tax collection. These results align with Public Finance Management Theory, which emphasizes the importance of transparency and fiscal discipline, and Modern Monetary Theory, which underscores effective government control over resources. The contrasting impacts on OTR and NTR suggest that while the TSA promotes diversification and financial control, it may necessitate sector-specific policy refinements to minimize negative consequences for oil revenue. The study contributes to the ongoing discourse on public financial management reforms, offering insights for policymakers and stakeholders in Nigeria and similar economies. Recommendations include refining the TSA framework to address sectoral challenges and exploring its long-term implications on fiscal stability. This research also provides a foundation for comparative studies across nations implementing similar policies.