How far has banks' efficiency changed overtime in Nigeria? : an empirical investigation

Abstract

This study investigates how banks' efficiency has changed overtime in Nigeria. The study applied Data Envelopment Analysis technique to obtain efficiency estimates such as technical efficiency, pure technical efficiency and scale efficiency for the period 2007-2012. The Malmquist Productivity index, which measures technical change and efficiency change, was also obtained. The result suggests mixed developments in terms of technical, pure technical and scale efficiencies of banks during the assessment period. Average pure technical efficiency at 39.8 per cent is higher than the scale and technical efficiencies at 30.0 and 24.5 per cent, respectively, while average technical change and efficiency change index were at 1.2 and 2.3 points, respectively.