Unveiling the Effects of COVID-19 on the Efficiency of Nigerian Banks.

Abstract:

This study investigated the impact of Covid-19 on the efficiency of Nigerian banks. The study especially examined the effects of Covid-19 on the capital adequacy ratio (CAR), asset quality, management quality, earning potential, and liquidity of Nigeria's money deposit banks (MDBs) both before and after the outbreak. The project employed a longitudinal survey research approach. Data was taken from the banks under study's audited financial statements for the years 2017 through 2020. The descriptive statistic of percentage and bar charts were utilized in analyzing the financial figures while the Sample T-test and the Wilcoxon Statistical Test were used via SPSS in testing the formulated hypotheses. Following a series of empirical tests, it was discovered that banks' capacity to generate money and the quality of their assets both increased more during the COVID-19 epidemic. The outcome also demonstrates that banks' capital adequacy (CAR), management effectiveness, and liquidity were most significantly impacted by the covid-19 problem as their values declined in comparison to before the epidemic. Consequently, the study recommended that banks should plan and prepare for eventualities like that of the covid-19 in the future so as to be better prepared in innovating new measures to run and sustain their operations in the face of such eventualities.