Effect of Liquidity Management on the Performance of Quoted Deposit Money Banks in Nigeria

Student: Aminu Lawal Sharif (Project, 2025)
Department of Accounting
Salem University, Lokoja, Kogi State


Abstract

This study examines the effect of liquidity management on the performance of quoted deposit money banks in Nigeria. The research utilized secondary data obtained from the annual reports of selected banks covering the period 2013 to 2022. Panel regression analysis was employed to evaluate the relationship between liquidity management indicators and performance measures such as savings mobilization, loan expansion, and profitability. The findings reveal that efficient liquidity management has a significant positive impact on the profitability and stability of Nigerian banks, indicating that banks with sound liquidity practices perform better financially and maintain stronger customer confidence. The study concludes that maintaining optimal liquidity levels is essential for enhancing performance and recommends that banks adopt robust liquidity monitoring and forecasting systems to ensure sustainable growth and stability in Nigeria’s financial sector.

Keywords
liquidity banks management performance nigeria effect quoted deposit money profitability