The Treasury Single Account And The Search For Effective Revenue Management In Nigeria’s Oil And Gas Sector

Abstract

The Treasury Single Account (TSA) policy was designed to block revenue
loopholes, promote transparency and accountability, prevent mismanagement
of government’s revenue, unify government bank accounts, improve the
processing of payments and collections, and reduce borrowing costs. It aims
to ensure complete, real-time information on cash resources and improves
operational and appropriation’s control. Despite its clear conceptual aims,
its practical implementation has been fraught with several legal challenges
and questions. This article examines the concept and historical origin of TSA
in Nigeria as well as its application in petroleum revenue management with
a view of determining its legality and constitutionality. The article further
considers whether the application of TSA had occasioned conflict or confusion
between the Federation Account and the Consolidated Revenue Fund as
provided under the 1999 Constitution of the Federal Republic of Nigeria, as
amended in the aftermath of the reform. It argues that TSA is not an account,
but a policy nomenclature directed towards the compliance with sections 80
(1) and 162 (1) of the 1999 Constitution as amended. Although it is currently
not provided for in any law or the Constitution, the article insists that the
constitutionally recognized accounts for the payment of revenue are the
Federation Account and the Consolidated Revenue Fund. TSA is a good and
effective policy for the management of petroleum revenue. The article
recommends a robust legal and institutional reform to secure its legality,
continuity and sustainability. It urges the legislature to review some of the
laws and amend the Constitution to entrench TSA in the legal regime.