Treasury Management, which has to do with the management of the l i q u i d i t y resources of any organization, involves planning, controlling, and monitoring the sourcing, disbursement and investment of the available financial resources. Managing the treasury in an efficient and desired manner can be jeopardized in the event of any form of squeeze especially as it concerns the changes in the external variables which may be beyond the contemplation of the organisations. The financial institutions particularly the banks, and the government organizations have been subjected to many forms of policy measures which have not been in t h e i r favour. The study has been undertaken, therefore, to unearth the extent of the impact of such l i q u i d i t y squeeze on treasury management. It has been discovered from the study that the barrage of policy measures in the past by the government and the apex bank has put the banks and the government organizations in quagmire. Some banks have collapsed while many others have become distressed. The government organizations have been compelled to engage in staff r a t i o n a l i s a t i o n beside the fact that they cannot engage in meaningful capital projects towards enhancing the welfare of the citizenry.