THE TRANSFORMATIVE ROLE OF INFORMATION TECHNOLOGY IN NIGERIA’S BANKING SECTOR: A COMPREHENSIVE ANALYSIS

This study, titled The Transformative Role of Information Technology in Nigeria’s Banking Sector: A Comprehensive Analysis, examines how IT integration has reshaped operational efficiency, customer satisfaction, and financial inclusion in Nigerian banks. The objectives were to evaluate IT’s impact on banking operations, assess its influence on customer service, identify adoption challenges, and explore its role in promoting financial inclusion, particularly in rural areas. A descriptive survey design was employed, with primary data collected through structured questionnaires from 150 respondents, including employees and customers of selected banks in Lokoja, Kogi State. The data were analyzed using descriptive statistics (mean, standard deviation) and inferential statistics (Pearson correlation, regression analysis) to test hypotheses at a 5% significance level. Findings revealed that IT significantly enhances operational efficiency (mean = 4.28) and customer satisfaction (mean = 4.25), with strong correlations (0.837 and 0.809, respectively). However, challenges such as cybersecurity threats (mean = 4.27), high costs, and inadequate infrastructure hinder full adoption. IT also promotes financial inclusion by improving rural access to banking services (mean = 4.24). The study concludes that IT is pivotal in transforming Nigeria’s banking sector but recommends stronger cybersecurity measures, improved infrastructure, customer digital literacy programs, and increased staff training to maximize its benefits. These steps will ensure sustainable growth and broader financial inclusion in the sector.