Journal of Economic, Finance Research and Review (JEFRR) · Research article · Open access
An Evidence-Based Analysis of Liquidity Management on Financial Performance of Listed Financial Institutions in Nigeria
Idris SARKI, Suleiman A.S. ARUWA, Dagwom Yohanna DANG
5 February 2026 · Vol. 2, Issue 2, pp. 66-71
DOI: 10.65150/EP-jefrr/V2E2/2026-01
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What is this article about?
This study explores the impact of liquidity management on the financial performance of listed financial institutions in Nigeria. Data were collected and analysed from the Nigerian Exchange Group covering the 2015 to 2024 financial periods.
Article at a glance
- Published
- 5 February 2026
- Volume / issue / pages
- Vol. 2, Issue 2, pp. 66-71
- ISSN
- 3051-3650 (online) · 3051-3642 (print)
- Licence
- CC BY 4.0 — free to read and reuse with attribution
- Peer review
- Double-blind, at least two independent reviewers
- Publisher
- EP Journals Group
Abstract
This study explores the impact of liquidity management on the financial performance of listed financial institutions in Nigeria. Data were collected and analysed from the Nigerian Exchange Group covering the 2015 to 2024 financial periods. Using the liquidity ratio, the current ratio, and the cash ratio as liquidity indicators, while return on investment serves as the performance measure, the study assessed 45 financial institutions. The study employed the ex-post facto research design and assessed how liquidity management practices impact profitability. Results showed that of the liquidity management practices, the liquidity ratio and the current ratio have a significant positive impact on performance, while the cash ratio had positive but insignificant impact. The study's conclusion is that managed liquidity of institutions leads to profitability, though some measures of liquidity showed no performance impact. It is recommended that financial institutions manage their liquidity in a way that liquid assets and their short-term net solvency are optimized while avoiding cash that is idle and not productive. The study’s outcome benefits bank managers, investors, and regulatory bodies in financial institutions to achieve improved performance through managed liquidity.
Keywords: Liquidity Management, Financial Performance, Liquidity Ratio, Current Ratio, Cash Ratio
Cite this article
Idris SARKI, Suleiman A.S. ARUWA, & Dagwom Yohanna DANG (2026). An Evidence-Based Analysis of Liquidity Management on Financial Performance of Listed Financial Institutions in Nigeria. Journal of Economic, Finance Research and Review, 2(2), 66-71. https://doi.org/10.65150/EP-jefrr/V2E2/2026-01
@article{Idris2026,
title = {An Evidence-Based Analysis of Liquidity Management on Financial Performance of Listed Financial Institutions in Nigeria},
author = {Idris SARKI and Suleiman A.S. ARUWA and Dagwom Yohanna DANG},
journal = {Journal of Economic, Finance Research and Review},
year = {2026},
volume = {2},
number = {2},
pages = {66-71},
doi = {10.65150/EP-jefrr/V2E2/2026-01},
url = {https://doi.org/10.65150/EP-jefrr/V2E2/2026-01}
}Questions about this article
Who wrote this article?
Idris SARKI, Suleiman A.S. ARUWA, Dagwom Yohanna DANG.
Where and when was it published?
In Journal of Economic, Finance Research and Review, Volume 2, Issue 2, pages 66-71, published by EP Journals Group on 5 February 2026.
Is this article free to read?
Yes. It is open access under a Creative Commons Attribution 4.0 (CC BY 4.0) licence, so anyone can read, share and reuse it with attribution.
What is the DOI of this article?
10.65150/EP-jefrr/V2E2/2026-01 (https://doi.org/10.65150/EP-jefrr/V2E2/2026-01).
How do I cite this article?
APA: Idris SARKI, Suleiman A.S. ARUWA, & Dagwom Yohanna DANG (2026). An Evidence-Based Analysis of Liquidity Management on Financial Performance of Listed Financial Institutions in Nigeria. Journal of Economic, Finance Research and Review, 2(2), 66-71. https://doi.org/10.65150/EP-jefrr/V2E2/2026-01
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