Liquidity Management and Profitability of Banks in Nigeria (2007-2017)

This study investigates the relationship between liquidity management and the profitability of Banks in Nigeria over the period 2007-2017.  The study examined the liquidity-profitability trade-off taking a sample of five banks in the banking industry. The empirical results revealed that liquidity management inversely influences the operations of deposit money banks. Data includes Descriptive research design and panel data regression which describes as institutions that are cross-sectional data and time series also known as collected historical data. This implies that liquidity management of DMBs has no significant impact on the returns on their assets and returns to their equity’s shareholders. There is therefore the need for banks to balance the trade-off between their liquidity management and profitability; this is because excess liquidity reduces profitability while excessive illiquidity exposes DMBs to insolvency.