Mitigating Effect of COVID 19 Pandemic on Banks Profitability in Nigeria: The Moderating Role of Government Financial Support

The mitigating effects (lockdown, quarantine and social distancing) of the Covid 19 Pandemic negatively affect all sources of revenues, making it difficult for banks to declare profit. The objective of the study is to explore moderating role of government financial support on the relationship between the mitigating effects of Covid 19 pandemic and banks profitability in Nigeria during the pandemic period. In achieving this, questionnaires were distributed to 86 branch and operation managers of the sampled banks in the study area were the study respondents. Using SEM / PLS, the results from the study indicated a significant and positive relationship between lockdown and banks' profitability, while quarantine and social distance do not influence banks' profitability. Furthermore, the results showed government financial support positively moderates the relationship between lockdown and banks' profitability. The study recommends that government should continue using monetary measures to strengthen banks, especially when there is a lockdown on banks in each phase of the pandemic since the pandemic is expected to continue.