Assessing The Impact of Staff Training and Development on Financial Performance of Commercial Banks in Nigeria

Abstract

This study examines the impact of staff training and development on the performance of commercial banks in Nigeria from 1981-2023. The researchers utilized an unbalanced panel dataset to analyze financial reports and internal records of seven selected banks (First Bank, Union Bank, United Bank for Africa (UBA), WEMA Bank, Access Bank Plc, Zenith Bank, and GTBank). The study employed a panel regression approach, utilizing Pooled Ordinary Least Squares (OLS), Fixed Effects (FE), and Random Effects (RE) models. Breusch-Pagan Lagrange Multiplier (BP-LM) test was conducted to determine whether the Fixed Effects or Random Effects model was more suitable for the analysis. Findings revealed that the level of education, financial education, and several training programmes significantly and positively influenced return on assets. On the other hand, non-performing loans significantly and negatively impacted return on assets. The study concludes that staff training and development significantly influenced the financial performance of commercial banks in Nigeria. The study recommends that commercial banks should collaborate with regulatory authorities, universities, and international training institutions to design programmes, certification courses, and workshops addressing Nigeria's-specific challenges. Regulatory authorities should enforce competency standards and support continuous professional development to ensure a resilient and competitive banking system. Investment in financial education and training programmes which focuses on credit risk assessment, customer services management, fraud prevention, and fintech adoption is imperative. Commercial banks should increase staff training and development in cyber-security measures, artificial intelligence applications, and mobile banking operations to cultivate a competent workforce capable of adapting to industry dynamics to enhance financial performance.