Influence Of Communication Strategy On Performance Of Commercial Banks In Nigeria

Summary

The Nigerian banking sector has over the years increasingly relied on debt financing to sustain operations and enhance profitability, yet concerns remain about its potential to undermine financial stability when mismanaged. Despite existing regulations, many banks in Nigeria still struggle with balancing debt structures, leading to fluctuating performance outcomes and heightened credit risk. This persistent problem necessitated an inquiry into the influence of debt financing on the financial performance of commercial banks in Nigeria. The purpose of this study was therefore to investigate the influence of debt financing on the financial performance of commercial banks in Nigeria, anchored on the Pecking Order Theory and the Trade-Off Theory. The study adopted a descriptive research design targeting 2,764 staff drawn from 21 licensed commercial banks in Nigeria. Proportionate stratified random sampling was used, with Slovin’s formula guiding sample determination. A total sample of 349 respondents was selected, comprising 137 senior managers, 102 middle managers, and 110 operational staff. Primary data were collected using structured questionnaires while secondary data were obtained from bank financial reports. Data were analyzed using descriptive statistics, correlation, and regression analysis. Findings revealed a strong positive and significant correlation between debt financing and financial performance (r = 0.711, p < 0.05). Regression results further indicated that debt financing significantly predicted financial performance (β = 0.648, p < 0.05). The study concludes that prudent debt financing enhances bank profitability and sustainability. It recommends that bank managers strengthen their debt structuring policies to optimize performance, while regulators should establish stricter monitoring frameworks to mitigate over-leveraging and systemic risks.

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APA: Timileyin, A. T., Mbithi, M., & Mbebe, J. (2025). Influence of communication strategy on performance of commercial banks in nigeria. Intra Africa Journal Hub (IAJH) DOI: iajournalhub, 1(001). https://doi.org/10.1177/014920639101700108MLA: Timileyin, Akintade Tomiwa, et al.. “Influence Of Communication Strategy On Performance Of Commercial Banks In Nigeria.” Intra Africa Journal Hub (IAJH) DOI: iajournalhub, vol. 1, no. 001, 2025. https://doi.org/10.1177/014920639101700108Chicago: Timileyin, Akintade Tomiwa, et al.. “Influence Of Communication Strategy On Performance Of Commercial Banks In Nigeria.” Intra Africa Journal Hub (IAJH) DOI: iajournalhub 1, no. 001 (2025). https://doi.org/10.1177/014920639101700108Harvard: Timileyin, A.T., Mbithi, M. and Mbebe, J. (2025) ‘Influence of communication strategy on performance of commercial banks in nigeria’, Intra Africa Journal Hub (IAJH) DOI: iajournalhub, 1(001). https://doi.org/10.1177/014920639101700108