DEPOSIT MOBILIZATION AND PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA (2000-2024)

This study investigates the effect of deposits mobilization on performance of deposit money banks in Nigeria. An expost facto research design is employed covering the period of 25 years from 2000-2024. Data for this study was sourced from World Bank Data Repository and CBN Bulletin. Various pre and post estimation test were conducted and based on the unit root test result, ARDL technique is employed. The analysis is conducted with the aid of E-view 12.0 statistical tool. From the result it is found that in the long-run saving deposit has positive (1.965381) and insignificant (0.0650) effect on return on assets of deposit money banks, demand deposit has negative (-0.717481) and insignificant (0.4823) effect on return on assets of deposit money banks while fixed deposit (-2.070503) has negative and significant (0.0531) effect on return on assets of deposit money banks. It is therefore concluded that deposit mobilization plays a critical role towards the performance of deposit money banks in Nigeria. It is on these bases that this study recommends that Deposit money banks should implement more aggressive and innovative marketing strategies to attract and retain long-term time deposits. Banks must improve their liquidity management frameworks to mitigate the volatility associated with demand deposits. Banks should consider diversifying their asset base and improve credit risk assessment mechanisms to ensure that loans funded through fixed deposits contribute meaningfully to long-term profitability.

0 20 Dec, 2025

pg: 15

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