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IMPACT OF POLITICAL AFFILIATION ON BANK PROFITABILITY IN NIGERIA

Uhomoibhi Toni Aburime

University of Nigeria, Nigeria

ABSTRACT

To improve the understanding of bank profitability in Nigeria, this study sought to econometrically analyze the relationship between political affiliation and bank profitability. Using a panel data set comprising 115 observations of 14 unique banks over the last democratic dispensation (1999-2007), regression results reveal that political affiliation has a positive albeit insignificant impact on bank profitability in Nigeria. Therefore, in order to maximize profitability, managements and shareholders of banks in Nigeria may wish to consider the political affiliation strategy.

Keywords: Banking; Profitability; Political Affiliation; Nigeria

JEL Classification: C33, G21