LIQUIDITY MANAGEMENT STRATEGIES AND FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN NIGERIA: A STUDY OF WEMA BANK PLC

The study focused on liquidity management strategies and financial performance of commercial banks in Nigeria with reference to Wema Bank Plc. Survey and Ex-post facto research designs. Primary and secondary methods of data collection were used in gathering relevant data for this research work. The primary source adopted was the use of administered questionnaire while the secondary source is adopted was the use of financial summary from Wema Bank 2015-2024. Judgment sampling technique was used to select a sample size of (25) respondents for the study using Taro Yamane formula. The researcher adopted longitudinal trend survey method using ex-post facto model. Data were collected, coded and analyzed using simple linear regression to test hypothesis, simple percentages and frequency tables were used to analyze the responses from respondents. The result revealed that there is no significant influence of liquidity management on the Return of Equity (ROE) of commercial Bank’s in Nigeria. Finding revealed that the impact of liquidity management on Return of Equity of commercial bank. This would eliminate currency risk exposure; ensure that adequate cash is available to pay for expenditures when they are due to maximize returns on idle cash and to manage risk. It was concluded in the study that liquidity management is key to financial performance of the commercial banks. It was recommended that, there is need for banks to engage competent and qualified personnel. Ensure that the right decisions are made especially with the optimal level of cash and to hold.