Impact of Covid-19 Lockdown on Savings Mobilization in Nigeria

Abstract

This study examines the impact of COVID-19 lockdown on savings mobilization by banks in Nigeria. An ordinary least square regression was applied to annual aggregate data to determine the type of relationship that exist, between the dependent and independent variable. Savings mobilization of the selected Bank was the independent variable, while the financial performance was the dependent variable. The financial performance of the four selected Banks is measured by some financial performance indicators; Profit after Tax (PAT). Multiple linear regression models and four hypotheses were specified the four selected Banks to ascertain the type of relationship that exist between the dependent and the independent variable. The findings show that savings mobilization of Banks during Covid-19 lockdown has a positive and significant impact on the dependent variables; Profit after Tax (PAT). In conclusion the study indicated that the savings mobilization of the selected Banks enhances their financial performance during the period under review which means that Covid-19 was of no significant impact on savings mobilization. A number of Policy recommendations were made based on the outcome of the research and prominent among them is the need for Banks to invest more on their outsourcing strategies to enhance their financial performance and savings mobilization.