RISK MANAGEMENT APPLICATION AMONG QUOTED DEPOSIT MONEY BANKS IN NIGERIA

The study examined the extent of derivative usage among deposit money banks in Nigeria with a view to determining the extent of derivative usage among deposit money banks in Nigeria between 20012 and 2019. The study employed secondary data. Data were obtained from the Nigerian Stock Exchange Factbook and audited annual reports of fourteen deposit money banks. They were purposively selected based on the availability of complete financial information for the sampled period (2012 – 2019). Data collected were analyzed using tables, graphs, bar chart. The result showed that individual usage of derivative instrument of selected quoted deposit money banks in Nigeria ranged from 0% to 64% and the overall application of the derivative instrument in the selected period ranged between 0% and 29%. The study concluded that derivative usage is still below the optimum use but significantly applied by quoted deposit money banks in Nigeria