World Bank Flags 5,000 TSA Gaps in Nigeria’s Fiscal System

The World Bank has raised concerns over weaknesses in Nigeria’s public finance management, warning that gaps in treasury operations and reporting are undermining fiscal transparency.

In its April 2026 Nigeria Development Update, the Bank said treasury operations remain fragmented, with about 5,000 Treasury Single Account sub-accounts not fully integrated into the consolidated revenue framework.

“Underlying these macro-fiscal challenges are persistent institutional and system weaknesses that constrain fiscal transparency, consolidation, and effective cash management,” the report stated.

It noted that key modules—covering revenue, assets, liabilities, and commitment controls—are not fully operational, while platforms used by the OAGF, DMO, and BOF are not seamlessly linked, causing manual adjustments, delays, and inconsistencies.

The Bank also flagged transparency issues, pointing out that Nigeria has not published audited federal financial statements since 2021, with audits still anchored in a 1956 law.

“Audit backlogs constrain oversight, weaken accountability, and limit the ability of stakeholders to assess the government’s financial performance accurately,” it said.

Recent reforms by the Office of the Accountant-General—including the rollout of the Federal Treasury e-Receipt and the Revenue Optimisation and Assurance Platform—aim to unify billing, automate revenue processes, and plug leakages.

The Bank stressed that addressing structural weaknesses is critical to fiscal discipline and investor confidence, warning that fiscal pressures could rise ahead of the 2027 elections, though higher oil revenues in 2026 may provide relief.

It added that Nigeria’s new tax framework, effective January 2026, modernises laws and introduces a global minimum tax, but short-term VAT revenue may decline before reforms broaden the base and strengthen compliance.