Investigating the Application of Queue Theory in the Nigerian Banking System

This study examined the application of queue theory in the banking system in Nigeria, with particular reference to GTBank and Ecobank Idumota branch, Lagos, Lagos state. The queuing characteristics of the banks were analyzed using a Multi-Server Queuing Model. The performance measures analysis including the waiting and operation costs for the banks were computed with a view to determining the optimal service level. Findings revealed that the traffic intensity was higher in GTbank with p =0.98 than in Ecobank with p= 0.78. Also, the potential utilization showed that Ecobank was far below efficiency compared to GTBank. Looking at the waiting time of customers in line and the time spent in the system, that is (Wq + Ws), we discovered that customers in Ecobank spent more time before being served both on queue and in the system than that of GTBank bank. The study concluded by emphasizing the relevance of queuing theory to the effective service delivery of the banking sector in Nigeria and strongly recommends that for efficiency and quality of service delivery to customers, the management of GTBank and Ecobank should adopt a 13-server model and 10-server model respectively to reduce total expected costs and increase customer satisfaction