INTELLECTUAL CAPITAL AND FINANCIAL SECTOR PERFORMANCE AMONG DEPOSIT MONEY BANKS IN NIGERIA: ANY LINKAGE?

This study examines the uncertainty surrounding the relationship between Intellectual Capital (IC) and financial performance (FP) of deposit money banks in Nigeria from 2012 and 2024. The study adopts secondary data, using audited financial reports of DMBs. The Value Added Intellectual Coefficient (VAIC) model of Pulic (1998) was used to measure the related intellectual components. The variables for the study are Capital Employed Efficiency (CEE), Human Capital Efficiency (HCE) and Structural Capital Efficiency (SCE). Return on Assets (ROA) was used as a proxy to financial performance. The study adopts 5% level of significance to test the hypotheses, and the results indicate that Intellectual Capital (IC) has a significant and positive relationship with ROA of deposit money banks in Nigeria. From the results obtained, the study concludes that Capital and human personnel play a significant role in the profitability and competitiveness of DMBs in Nigeria. Given the above, the study recommends that DMBs should develop strategies to attract, retain and develop intellectual capital through training programmes. In addition to the above, DMBs should invest in technology to improve efficiency and ensure a culture-knowledge-sharing among workers.