Banking Industry in Nigeria: A Comparative Analysis of Pre and Post Consolidation Performances

Abstract

Motivated by the need for a comparative pre and post consolidation performance evaluation of Nigeria's banking industry, this study employed descriptive statistics, normality, and independent sample t-tests over the periods 1990 – 2004 and 2005 – 2019. The results indicate that all the study variables showed normal distribution in the pre and post-consolidation periods. This study concludes that; Nigerian Banks performed significantly better in the post-consolidation period in terms of savings deposits, demand deposits, time deposits, quality risk assets, non-performing risk assets, and the number of bank branches. On the other hand, non-performing risk assets were seen to have increased or further deteriorated against apriori expectation. Considering these findings, it recommends that; there should be enforcement of credit contracts to assist banks in credit recovery and respect of credit terms by customers. Further recommended is extensive emphasis by every bank on relationship management and product development to facilitate creation of more hybrid products which will create basis for attraction of more customer patronage.