ABSTRACT

Efforts have been made by organization to rectify the problems faced in their management of current assets and liabilities. Some decisions have altered the requirement of the firm's o objectives and goals. This work appraised the impact of effective liquidity management on corporate performance. A close analysis shows that liquidity management is concerned with the provisions of cash and adequate management of other items of current assets and liabilities. Liquidity implies the existence of cash (now or in the future) to meet obligations which must be settle in cash as at which due. A liquid asset is the one that can be realized, that is turned into cash quickly and without capital loss. In this project various constitutions of liquidity assets in Nigeria banking system such as notes and coins balance with the CBN etc are discussed. Some of the causes of liquidity problems and the risk involved in banking industry such as funding risk, time risk etc

where also discussed. The researcher aimed at examining the importance of liquidity management and corporate performances. The null hypothesis was that effective liquidity management does not enhance or promote corporate performance. In order to analyze and present the data, instruments like personal interview and questionnaires where used. The researcher dispatched 60 of which all where returned and used. Hypothesis was tested using chi-square method. It was established that management of current assets and liquidity promote corporate performance. In the view of the above, recommendations has been made that banks should not hold cash more than necessary for their usual transactions and their credit  should he well monitored. It is in the conviction of the researcher that even the smallest firm having adequate current assets and liabilities can make an impact on the growth and development of the nation.