ABSTRACT

The aim of this research is to examine the effect of ecosystem and financial performance on banking sectors in Nigeria from 2006-2018. Banking sectors is the dependent variable proxy by Return on asset (ROA), while ecosystem and financial performance is the independent variable proxy by global oil price, monetary policies, interest rate, inflation and unemployment. The population of the study consists of aggregate data of the banking sector performance in Nigeria as contained in the CBN Statistical Bulletin. However, this study employed the Ordinary Least Square analysis (OLS) to investigate the relationship between the ecosystem and financial performance on banking sectors in Nigeria. The result shows that Exchange rate, Inflation, Money supply and monetary policy rate have significant effects on the banking sectors. In contrast, global oil price and unemployment are not significantly affecting performance on banking sectors in Nigeria. The study therefore recommended that, Government should come up with relevant policy measures to tackle the rising unemployment rate in the country, so as to boost the performance on the banking sectors. Also, Government should implement exchange rate policies that will strengthen the Naira against the dollars. This will discourage capital flight and enhance the financial sector performance in Nigeria.