IMPACT ANALYSIS OF INFORMATION AND COMMUNICATION TECHNOLOGY ON FINANCE AND ECONOMIC GROWTH IN NIGERIA (2001 – 2011)

Abstract

The study analyses an impact relationship of Information and Communication Technology (ICT) on Bank Performance and Economic Growth in Nigeria. The study obtained an annual data of selected commercial banks in Nigeria for an 11 years period i.e. 2001 – 2011. The data comprises of net profit, total assets, total equity, ATM machines including e-banking services of the stated banks. The ordinary least squares (OLS), among the commonly used models in analysing panel data were used. Results of the study reveals that the use of ICT, from random effects model, does not improve bank performance in the Nigerian commercial banks. However, increased profitability, total equity showed significant relationships between bank performance and hence economic growth in the country. Similarly, a positive influence on bank performance is also revealed but is not statistically significant. The conclusion draws is that improved investment in ICT equipment does not improve bank performance. Rather relevant policies which could boost bank performance in term of profitability, capitalisation and consolidation should be pursued which are also the main determinants of economic growth.