THE ERA OF POST-CONSOLIDATION AND BANKS’ PROFITABILITY IN NIGERIA (2000- 2013): A MULTIVARIATE CO-INTEGRATION ANALYSIS (Review Completed - Accepted)
The paper examined the relationship between the era of post-consolidation and banks’ profitability in Nigeria using data spanning (2000-2013). Secondary data was collected from the CBN statistical and economic and financial review bulletins. Hypotheses were formulated and tested using error correction model (ECM) and the study reveals that the variables are stationary and integrated of order at various levels. There is also long-run equilibrium relationship between the era of post-consolidation and banks’ profitability in Nigeria and the result confirms that about 62% short-run adjustment speed from long-run disequilibrium. The coefficient of determination indicates that about 27% of the variations in banks’ profitability are explained by changes in the era of post-consolidation variables. The study therefore recommends that bank management should strengthen their supervising units in credit administration to avoid the issue of non-performing load. For Nigeria banks to be a major player in domestic and international market, banks capital should be above minimum regulatory requirements at all times. Shareholders’ funds and total assets of banks should be periodically evaluated and aggregate marketing should be vigorously intensified by the banks
Keywords: Banks’, Era, Nigeria, Post-Consolidation, Profitability