TREASURY SINGLE ACCOUNT IMPLEMENTATION IN NIGERIA: POTENTIAL IMPLICATIONS FOR DEPOSIT MONEY BANKS

This paper analyses potential consequences of the implementation of Treasury Single Account on Commercial Banks by the Federal Government of Nigeria. With the use of descriptive analysis and the aid of charts, it is seen that commercial banks are likely to encounter liquidity challenges in the short term. The government may also lose interest income from time and savings deposits with the banks. It recommends the easing of sectoral restrictions to allow for movement of funds to growth areas. Government should also design a mechanism to earn income from surplus funds.