MONETARY POLICIES AND THE PROFITABILITY OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

This research explored the relationship between monetary policy and the profitability of listed deposit money banks in Nigeria. Specifically, it investigated how policy instruments such as lending rate (LDR) and Inflation rate (IFR)affect bank profitability indicators including Return on Assets (ROA), Return on Equity (ROE), Earnings Per Share (EPS), and Tobin’s Q. The population of the study consisted of all deposit money banks listed on the Nigerian Stock Exchange as of 2024. A sample of five banks were selected based on their consistent ranking among the largest financial institutions in the country. Secondary data covering the period from 2019 to 2024 were collected from annual financial statements of the sampled banks and the Central Bank of Nigeria (CBN) Statistical Bulletin. The study employed the Multiple regression technique to test the study hypotheses. The result of the hypotheses shows that LDR has a positive significant effect on ROA, ROE, EPS and Tobin’s Q, meanwhile, IFR has a negative effect on the profitability measures. The research therefore concluded that Monetary Policies have a significant effect on the Profitability of Listed Deposit Money Banks in Nigeria. It recommends that the Central Bank of Nigeria balance the lending rate regime to promote sustainable interest income for banks alongside supporting credit growth and economic stability. Meanwhile, the government should proactively exercise coherent fiscal and monetary strategies to control inflation through effective public spending, enhanced agricultural productivity and stable foreign exchange