Significance of Return on Investment on Performance of Deposit Money Banks in Nigeria

The performance of deposit money banks in Nigeria is predicated on a number of factors and these need to be well developed into in order to ascertain their impact on the performance of deposit money banks in this country. This therefore, led to this paper which considered the significance of return on investment on the performance of deposit money banks in Nigeria. The secondary method of data gathering was adopted for this study. It involved a five year period of ten banks, spanning between 2012 and 2017 and the data was generated from the publications of the sampled banks. Statistical Package for Social Sciences 21.0 (IBM SPSS Statistics 21) was used to analyse the data, with the test statistic of multiple regression analysis being used. The findings of the study suggest that income-generating assets (e.g., loan, large capital asset base, salary and other cash advances, overdrafts, etc.), and that efficient utilization of asset, strongly predict the level of performance in a bank; there is a strong relationship between banks‘ performance and other macro-economic factors such as inflation and interest rate. It was recommended that the Central Bank of Nigeria should come up with frameworks that would facilitate standard practice and modern banking system in Nigerian deposit money banks and which can be used in its key policy indicators to reduce the interest rates so as to be investorfriendly; that human resources in the deposit money banks should be well trained and given adequate exposure on the modern banking practice and that the system adopted by the banks on loan recovery and other measures should be holistic in ensuring the maintenance of best performance practice by the banks‘ employees