Human Capital Development and Financial Performance of Deposit Money Banks in Nigeria

Abstract

The study determined the relationship between human capital development and financial performance of deposit money banks in Nigeria using an ex-post-facto research design. The 22 listed commercial banks in Nigeria are our population. The sample size of this study was two listed commercial banks in Nigeria, obtained using the purposive sampling technique, spanning 2010 to 2022. These 2 banks (Fidelity Bank and UBA) have the required up-to-date information needed by the researcher. Secondary data obtained from the Nigerian exchange group were analysed using multiple regression. The study revealed that a significant relationship exists between human capital development and the financial performance of DMBs in Nigeria. Hence, the researcher concluded that a significant relationship exists between human capital development and financial performance of DMBs in Nigeria. The researcher further suggested that deposit money banks in Nigeria should develop customised financial training programmes that align with their specific needs and objectives. Also, the management should offer competitive compensation packages and benefits to attract and retain top talent in the industry to boost profitability. More so, policymakers should implement skill-based pay scales because this could incentivize employees to acquire additional skills and expertise that directly benefit the bank's operations.