DIGITIZATION FOR PERFORMANCE IMPROVEMENT: A CASE STUDY OF NIGERIAN BANKS

Abstract

This study examined the impact of digitalization on the performance of commercial banks in 
Nigeria using panel data from 2012 to 2022. The research adopted an ex post facto and quantitative 
research involving secondary form of data.  It focused on how mobile banking, total assets, and 
non-performing loans influence return on assets (ROA). Employing descriptive statistic, panel 
least square, cross-sectional dependent test, fixed and random effects models, the findings indicate 
that digitalization generally enhances bank performance. However, results vary depending on scale 
and infrastructure costs. Mobile banking initially shows a positive effect on ROA, but fixed effects 
suggest a slight negative impact possibly due to cost implications. Total assets also exhibit mixed 
outcomes. The study underscores the need for strategic digital adoption that balances efficiency 
with cost management. Key recommendations include investment in secure digital infrastructure, 
continuous staff training, and increased public awareness on data protection to sustain profitability 
and customer trust.