Chapter One — 1.1 Background to the Study

In recent years, Treasury Single Account Policy has emerged as a critical factor shaping bank liquidity position across organizations operating in and around Nigeria and Selected ECOWAS Member States. As institutions grapple with the pressures of globalization, regulatory reform, and shifting stakeholder expectations, understanding how treasury single account policy relates to bank liquidity position has become an important area of both scholarly and practical concern.

Nigeria and Selected ECOWAS Member States presents a useful setting for examining this relationship precisely because the conditions there — structural, regulatory, and behavioural — differ from those typically assumed in the broader literature, most of which draws on evidence from more developed economies.

1.2 Statement of the Problem

While treasury single account policy is widely discussed in policy and industry circles, empirical evidence on its actual effect on bank liquidity position within Nigeria and Selected ECOWAS Member States remains sparse and, in places, contradictory. This lack of localized, rigorous evidence makes it difficult for decision-makers to know with confidence whether current approaches to treasury single account policy are helping or hindering bank liquidity position — a gap this study sets out to close.

1.3 Objectives of the Study

1. To examine the effect of Treasury Single Account Policy on bank liquidity position in Nigeria and Selected ECOWAS Member States.
2. To assess the extent to which treasury single account policy influences bank liquidity position within the study area.
3. To identify the challenges associated with treasury single account policy in relation to bank liquidity position.
4. To recommend strategies for optimizing treasury single account policy in order to improve bank liquidity position.

1.4 Research Questions

1. What is the effect of treasury single account policy on bank liquidity position in Nigeria and Selected ECOWAS Member States?
2. To what extent does treasury single account policy influence bank liquidity position within the study area?
3. What challenges are associated with treasury single account policy in relation to bank liquidity position?
4. What strategies can be adopted to optimize treasury single account policy in order to improve bank liquidity position?

1.5 Significance of the Study

This study is significant to a range of stakeholders. For policymakers and regulators, the findings offer evidence to guide the design of frameworks that support healthier outcomes around bank liquidity position. For managers and practitioners within Nigeria and Selected ECOWAS Member States, the study provides practical insight into how treasury single account policy can be better managed. Finally, it contributes to the academic literature on finance / banking by extending existing knowledge into a specific empirical context, and offers a reference point for future researchers.

1.6 Scope of the Study

In terms of scope, this study confines itself to Nigeria and Selected ECOWAS Member States, focusing specifically on how treasury single account policy relates to bank liquidity position within that setting. Findings are interpreted within these boundaries rather than as universal claims applicable to every organization or market.