INVENTORY MANAGEMENT PRACTICES AND FINANCIAL PERFORMANCE IN FIRST BANK NIGERIA PLC, SAKI BRANCH

ABSTRACT This study investigates the relationship between inventory management practices and financial performance in First Bank Nigeria Plc, Saki Branch. Effective inventory management is crucial in the banking sector, particularly in ensuring optimal utilization of resources, cost control, and operational efficiency that ultimately enhance financial outcomes. The study adopts a descriptive survey research design and relies solely on primary data collected throughstructured questionnaires administered to staff members across various departments of thebank, including operations, administration, and finance. Data gathered were analyzed using descriptive and inferential statistical techniques to determine the effect of inventory control, stock monitoring, and procurement procedureson financial performanceindicatorssuch as cost efficiency, profitability, and liquidity management. The findings reveal that efficient inventory management practices including timely procurement, accurate record keeping, and effective utilization of materials have a significant positive impact on the bank’s financial performance. Conversely, poor inventory control and inadequate monitoring systems were found tocontribute to waste, increased operational costs, and reduced profitability. The study concludes that effective inventory management is an essential tool for improving financial performance and operational sustainability in banking institutions. It recommends thatFirst Bank NigeriaPlc should strengthen its inventory control systems, adopt digital tracking technologies, and provide periodic staff training on inventory handling procedures to enhance accountability and efficiency.