Blockchain Technology and Profitability in Nigerian Money Deposits Bank

Abstract

This study examined the effect of blockchain technology on the profitability of Nigerian deposit money banks, with specific emphasis on the effects of blockchain integration and blockchain based accounting systems on firm profitability. The study adopted a cross sectional survey research design and focused on employees of five selected deposit money banks in Nigeria. The study population comprised 1,305 employees, while a sample size of 306 respondents was determined using Taro Yamane's formula and selected through proportionate stratified sampling. Primary data were collected through a structured questionnaire, and descriptive statistics such as frequency and mean were used for data presentation and analysis. The hypotheses were tested using Multiple Linear Regression Analysis at the 5 percent level of significance. The findings revealed that blockchain integration had a positive and significant effect on firm profitability (β = 0.466, p = 0.000), while blockchain based accounting systems also exerted a positive and significant effect on firm profitability (β = 0.380, p = 0.000). The study concluded that blockchain technology enhances the profitability of Nigerian deposit money banks and recommended that bank management should increase investment in blockchain integration and strengthen the adoption of blockchain based accounting systems to improve profitability.