SURVIVAL PRIORITY FOR NIGERIAN BANKS: INVESTIGATING THE NEED FOR DIVERSIFICATION STRATEGIES IN A DOWNTURN ECONOMY

This study examined diversification strategies from a different perspective by evaluating the survival indicators from sampled of Nigerian banks through the exploitation of new product tactics, related and unrelated diversification options. Using survey design to sift data from 372 sampled respondents of five randomly selected money deposit banks in Oyo and Ogun states Nigeria; and by adopting the triangulation analytical technique involving combination of questionnaires and interviews, it was found that there was a significant positive effect of new product/service strategies on the profit growth of selected banks in Nigeria; further it was discovered that unrelated diversification strategies influenced positively on the banking firms’ ability to outperform their competing rivals; and also, banking firms in Nigeria that considered related or unrelated diversification grow faster and perform better than those who remain undiversified. The regression analysis was used to test the three hypothesized questions and results showed significant figures on the variables. The study concludes that the corporate survival of Nigerian banking organizations would be significantly affected by the mode of diversification utilized by such firms. It was advised that the Nigerian banking organizations should pay greater attention to the new-products, related and unrelated diversifications in order to enjoy continuing successful operations. Further, the study admonished that the banking firms need to enhance and improve on their quality design, innovations and unique features. Due to the forces faced from domestic and international competition, a strategy of diversification would be a more viable option for Nigerian banks than strategies based on efficiency and price