IMPLICATIONS OF HUMAN CAPITAL DEVELOPMENT FOR COMMERCIAL BANKS IN NIGERIA

Abstract

This paper reviews existing research to ascertain the effect of human capital on
growth, profitability and competitive success of Nigerian commercial banks.
This is because in Nigeria, the banking sub-sector plays a critical role in
channeling monetary resources to other sectors of the economy for the creation
of wealth. However, Modern Nigerian banks are technology-intensive mostly in
a bid to sustain Nigeria’s cashless policy. In view of this fact, the objective of
this paper is to determine the link between human capital and commercial
Bank’s growth and profitability. Hence, the paper adopts a documentary and
content analysis methodology to achieve its goal. Literature evidence found
supports that investment in human capital has positive correlation with higher
returns and better performance in the banking industry. In view of the positive
link between human capital and growth and profitability of banks, this paper
recommends infusion of core bank staff into intensive software application
sessions as well as information and communication technology training
programs.