Digital Adoption and Commercial Banks’ Performance in Nigeria

Sinime Sarah Cocodia; Okanlawon Adeoluwa; Prof. Andabai; Priye Werigbelegha; Ph.D

doi:10.56201/ijefm.v11.no7.2026.pg381.393

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Digital Adoption and Commercial Banks’ Performance in Nigeria

Sinime Sarah Cocodia and Okanlawon Adeoluwa, Prof. Andabai, Priye Werigbelegha, Ph.D

Abstract

The study examined the impact of digital adoption on commercial banks’ performance in Nigeria, for the period 2006-2025. The study employs an ex post facto research design. Data sourced from the Central Bank of Nigeria Statistical Bulletin, 2025; using OLS regression analysis to identify the coefficients. The study used return on asset of commercial banks as proxy for commercial banks performance and used as the dependent variable; whereas, the explanatory variables include Automated Teller Machine, Point of Sale and Web payment. The findings shows that point of sales transactions have a positive significant impact on the return on asset of commercial banks in Nigeria. Automated Teller Machine transactions have a positive significant impact on the return on asset of commercial bank in Nigeria. Web payment transactions have a negative significant impact on the return on asset of commercial bank. The coefficient of determination indicates that about 48% of variations in commercial bank performance in Nigeria can be explains by changes in digital adoption variables in Nigeria. The study concludes that digital adoption has a positive significant impact on commercial banks’ performance in Nigeria. Thus, the study recommends that policymakers and relevant stakeholders should invest in improving the quality and effective utilization of digital connectivity infrastructure, particularly in underserved areas, to ensure that increased access to digital networks translates into meaningful contributions to banking sector growth. Banks should review and optimize the operational structure of mobile banking platforms by reducing associated costs, improving efficiency, and enhancing revenue generation mechanisms to reverse the negative impact of mobile banking transactions on commercial banking sector. Financial institutions should strengthen and promote website- based banking platforms by improving user experience, enhancing security features, and increasing awareness among customers to boost their usage and contribution to banking sector performance in Nigeria.

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Digital Adoption and Commercial Banks’ Performance in Nigeria

Abstract

References

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