Deposit Money Banks in most African countries including Nigeria are already being properly normalized functionally as the official implementation of Treasury Single Account (TSA)in the country has brought them back from their initial functional abnormality exhibited through the collection and keeping of public sector funds. Among various changes being put in place by the TSA include the transfer of the safekeeping responsibility and the protection of public fund from their purview by the country?s apex bank (CBN),thereby leaving the Deposit Money Banks to serve solely as mere collection agents throughout the federation. This appropriation of responsibility seems to be taking a negative toll on the liquidity status of the DMBs and thus, this study was conducted to determine the extent at which this said negative toll is imparting on the liquidity of the DMBs vis-?-vis measures towards ameliorating same in order to avoid going back to the dark days of bank failure. Descriptive and ex-post facto analysis style were utilized. We then used regression and correlation methods to analyze the secondary and time series statistical information obtained on the twenty four DMBs within the Country from the CBN bulletin of 2019. Our results disclosed that the policy implementation and its model has important impact on the liquidity of Deposit Money Banks and this translated further to a major impact on Credit to the Private Sector, Deposit Mobilization, Loans and Advances. The study in this wise recommended sure measures necessary for containing the earlier mentioned negative toll consequent upon TSA implementation on the liquidity of DMBs, which involves the necessity for DMBs to redouble their efforts on deposit mobilization from alternative sectors. This makes it possible for these DMBs to reduce their dependence on government fund for their operational activities. It went on to suggest future reconsolidation of the banking sector to permit for mergers, take over and outright acquisition among the DMBs, so the few stronger banks that will stay would possess the wherewithal to making wealth and jobs for the people, thereby improving and growing the Nigerian economy. The research ended with the position that the TSA policy be fully implemented and subsequentlysustained by the Nigerian government.

Public Sector Funds

Banks’ Liquidity

Treasury Single Account (TSA)

Deposit Mobilization

Credit to the Private Sector

Loans and advances

Consolidation

Banking Sector

Merger

Take over

Acquisition