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Everyone agrees that human capital is the most valuable asset in the banking business because all other assets cannot work well without their methodical combination by the human aspect of these resources. Educating and training this human aspect on how to optimally combine other resources can go a long way towards making the aims of society as a whole (the government, shareholders,

the banking industry, and the employees) attainable, thus the development of human capital in the banking business. The many writers emphasised the importance of necessary training and motivational strategies in order to attain the goals of this study.

The universe of interest of the purpose of this study was the 24 banks, and I employed a non-probability sampling method because I limited my study to Edo State alone.

The research instrument was 100 questionnaires, and the chi-square method of data analysis was employed to translate the data obtained into information for practical decision making. Responses from the banks surveyed were analysed, which I then used to test my hypotheses, which all favoured alternate possibilities.

As a result of the preceding, it was revealed that human capital development, through suitable development of human capital stock, might put a stop to the problems observed in the Nigerian banking business.



Investment in education and training is referred to as human capital. According to recent surveys, while business executives agree that people are the most essential asset that an organisation can utilise to achieve its goals, they are unable to demonstrate that investing in people leads to greater business results.

Common measurements, such as Economic Value Added (EVA) and Return on Investment (ROI), however, provide little insight into how an organization’s human assets are functioning.

Among the four M’s (Money, Materials, Machines, and Man), it is Man who makes the organisation thick. The Nigerian banking industry is one of the most active in the country. The sector is currently what keeps the economy afloat and active, therefore human capital development must be competent and comprised of people’s talents. Within the organization/industry, the right people should be in the right places at the right time.

A look at what defines the human capital requirement finds that most banks employ employees with core competencies. Banks often employ a small number of personnel who are of high quality. Members of the banking business must evolve the learning and development processes in order for efficient human capital development to occur.

In essence, this means that the organisation must find ways to develop and mobilise the intelligence, knowledge, and creative potential of human beings at all levels of the organisation, and it must become increasingly adept at placing quality people in key positions and developing their full potential.

It will also become increasingly necessary to hire people who enjoy learning and embrace change, as well as to motivate staff to be bright, adaptable, and flexible.

Kauter (1992) characterises this as the necessity to develop people as a crucial lever in human resource management and makes the connection between organisational member learning and the organization’s survival and success.


As previously stated, human capital development is critical to the success of any organisation. In order for this to occur, the Nigerian banking industry must be able to teach and retrain its employees. This will entail paying large sums of money to have Seminars (in-house or outside). Remember that even if training funds are available, personnel must establish the proper mental attitude for the training. The organisation must also provide a conducive working atmosphere for its personnel.

The human resource environment might be either internal or external. The internal environment consists of those sets of controllable factors or variables and forces that exist within the confines of the organisation, such as the value of top management and the technology in use.

For example, if top management values people and sees them as critical Success Factors (CSF) and adequately rewards them when the need arises, employees will be at their best and the banking industry will continue to grow.

Another factor to consider when determining whether or not the banking business and its human resource capital growth will grow is the technology in use. Banks should rise to the occasion in this age of information technology and globalisation.

The usage of ATM machines, for example, has shaped the future of human capital development in most banks that can afford it. Human Capital Development is as vital in the Nigerian banking industry as the business itself. However, some issues are anticipated, such as:

1. Will the development of human capital address Nigeria’s banking problems?

2. How can Human Capital Development help governments and financial institutions?

3. What good impact does it have for shareholders, innovators, and the general public?

4. How will the organisation prevent worker unrest and turnover, regardless of the development of its human resources?

5. Does the time and money invested on human capital development connect with employee output and returns?

6. Is human capital development a panacea for employee performance?

7. Is human capital development reflected in the profitability of the organisation (banks)?

8. What steps should banks take to improve human capital development in order to increase profits?

9. What are the prospects for human capital development in the banking industry?

10. Is it appropriate to overuse personnel in the name of increasing profits?


The study’s focus is on human capital development in Nigeria’s banking industry.

Human capital is defined as investment in education that is imbedded in workers. Some of the training focuses on “general” or “transferable” abilities that can be applied productively across several organisations. Others give organization-specific skills that improve worker productivity solely within the training organisation. These later talents are usually best studied or can be learned on the job.

Workers with organization-specific skills will only be able to acquire a wage premium for that talent within the organisation where they were taught; leaving would entail looking for work in a place where they would be less productive and hence paid less. This has two consequences. First, there is an incentive for such workers to stay with the organisation where they learned their abilities.

This gives employers a degree of monopoly power over their employees. Second, the loss of certain talents would require the organisation to invest in costly training of new staff. This research was planned and organised to cover a full evaluation of human capital development through a case study of Intercontinental Bank Plc and Union Bank, Bank PHB, Guaranty Trust Bank, and Access Bank Plc. It will emphasise the industry’s overall difficulties and opportunities.


The research activity is expected to contribute to knowledge, which means that existing knowledge will be extremely beneficial to the following groups:

a. The federal government

b. Potential investors

c. A bank, for example.

As a result, the study’s goal is:

1. Determine the difficulties of human capital development in Nigeria’s banking sector.

2. To assess and quantify the contribution of human capital development to higher productivity in the Nigerian banking sector.

3. To assess the current human capital development’s ability to fit into the global market and compete globally.

4. To propose answers to the banking industry’s human capital development concerns (filling the existing gap).

5. Recognise the value of human capital as a remedy for success and continuing growth in Nigeria’s banking industry.


1. For the banking sector, this research on human capital development would provide a significant and impressive contribution to the growth of the Nigerian banking industry.

2. It will play a vital role in assisting management in achieving acceptable returns on investment.

3. Human capital development functions as a veritable tool for employees in terms of skill development for current and future difficulties.

4. With proper investment in human capital development in the banking industry, investors will be doubly certain that their investment is in safe hands, because no matter how strong the other forces of production are, without labour (human capital), the result will be negative.

5. It will act as a reference for future academics who may seek to do research on human capital development difficulties and prospects.

6. Make recommendations based on the forging research.


A hypothesis is an unproven assertion, supposition, or statement of facts. However, the following hypothesis will be evaluated for our research project:

For the Null hypothesis, Ho = shall be used.

H1 = will be utilised for alternative hypothesis.

1st Hypothesis

Ho: Human capital development would not fix Nigeria’s banking industry’s difficulties.

H1: Human capital development will solve Nigeria’s banking industry’s challenges.

2nd Hypothesis

Ho: Human capital development is not a solution for increasing efficiency in Nigeria’s banking business.

H1: Human capital development is a cure for improving efficiency in Nigeria’s banking business.

3rd Hypothesis

Ho: Developing human capital does not help management measure performance.

H1: Human capital development will help managers measure performance.


We must collect data in order for our research to be full and reliable. In this scenario, we can obtain information from both primary and secondary sources. Questionnaires, personal interviews, and physical observations can all be used to obtain primary data. A questionnaire can be distributed to employees of any intending organisation, but in this example, banks.

Secondary data can also be useful in our research. These can be obtained through textbooks, yearly accounts, and organisational reports. We can collect data from their annual reports because we are dealing with the Nigerian banking business.

The use of online services such as the Internet is more important. Computers have made research work easier, therefore accountants, scientists, and others continue to use them.


a. ATM = Automatic Teller Machine: A machine that pays immediately when a withdrawal is made.

b. Controllable Factors: Factors that operate within an organisation, that is, within the constraints of an organisation, such as the size of the organisation, the value of top management, the technology in use, and so on.

d. IT = Information Technology: The use of computers in the workplace.

d. Human Capital: Education and training investments.

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