An Evaluation of Technical Efficiency of Commercial Banks in Nigeria (A Dea Approach)

Adebayo Moses

This study evaluated technical efficiency of the Nigerian commercial Bank between the years 2002 to 2011. Ten Nigerian Banks were randomly selected out of 15 banks quoted in Nigeria. In order to achieve the objectives of the study the research questions formulated were; is there relationship between efficiency of Nigerian commercial banks and technical production? Is there relationship between effective man- power planning and technical production efficiency? And to what extent does managerial performance assist high technical production efficiency?  For this intention, the Data Envelopment Analysis (DEA) model was used. The results of the analysis showed that, some banks were found perfectly technical efficient with efficiency scores of 1.000 meaning (100%) efficiency, whereas those that were below 1.000 were less fully efficient. The mean technical efficiency, for the period examined stood at 0.938 (93.8%). This mean result meant that the Nigerian banking sector generally needs sound managerial attention.  It is recommended therefore that the sound macroeconomic, sectorial and structural policies are applied to improve internal balance, ensure external sector performance and stimulate the productivity base and industrial sector of the Nigerian economy.

Evaluation, Technical efficiency, Decision-Making Units, Financial Intermediation, Banking sector and Financial resources


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