Implications of Treasury Single Account on Banks in Nigeria: A Study of First Bank Nigeria PLC

Abstract

The banking segment is the engine of any nation's economy. The   economic status of any nation rest on how   stable their banking industry is. In other words, any issue that affects banks also has an impact on the economy of the nation.  This study   assess the implication of treasury single account on banks   in Nigeria; a study of   first bank of Nigeria PLC. A sample  of 200 participants were randomly selected across 50 branches of first banks in Plateau, Ondo,   Bayelsa,   Bauchi, Kaduna and Enugu state.  Primary and secondary data were used for this study. Descriptive statistics such as percentage was used to analyse the socio-demographic variable of the respondents in this study and   inferential statistics such as regression and correlation analysis were used to analyze the data to test the three hypotheses in this study with the aid of SPSS version 25 software. The results revealed that TSA   policy which seeks   to reduce  FG Deposit in  the commercial banks  has significantly  reduce  the level of banks liquidity. TSA  policy which seeks  to reduce  FG Deposit in  the commercial banks has significantly  reduce  Commercial Banks Deposit Mobilization TSA  policy which seeks  to reduce  FG Deposit in  the commercial banks has significantly  reduce Loans and Advances. The study recommends that government should secure as soon as possible the appropriate legislative support to facilitate the relevant regulatory environment which will drive the effective implementation of the TSA in the states and local governments in order to promote accountability and transparency at all levels of government and  the banks should avoid over-reliance of government funds and source for funds from other sectors of the economy among other recommendations were made.