Chapter One — 1.1 Background to the Study

Over the past decade, the relationship between peer-to-peer lending and return on assets of listed banks has become a subject of considerable debate among scholars and industry practitioners alike, particularly within the context of Ogun State where operating conditions differ markedly from more developed markets.

Ogun State presents a useful setting for examining this relationship precisely because the conditions there — structural, regulatory, and behavioural — differ from those typically assumed in the broader literature, most of which draws on evidence from more developed economies.

1.2 Statement of the Problem

Despite a growing body of literature on peer-to-peer lending, there remains limited consensus on the precise nature of its relationship with return on assets of listed banks, particularly within Ogun State. Many organizations continue to make decisions about peer-to-peer lending without a clear, evidence-based understanding of how those decisions ultimately affect return on assets of listed banks. This gap between practice and empirical understanding is the central problem this study seeks to address.

1.3 Objectives of the Study

1. To examine the effect of Peer-to-Peer Lending on return on assets of listed banks in Ogun State.
2. To assess the extent to which peer-to-peer lending influences return on assets of listed banks within the study area.
3. To identify the challenges associated with peer-to-peer lending in relation to return on assets of listed banks.
4. To recommend strategies for optimizing peer-to-peer lending in order to improve return on assets of listed banks.

1.4 Research Questions

1. What is the effect of peer-to-peer lending on return on assets of listed banks in Ogun State?
2. To what extent does peer-to-peer lending influence return on assets of listed banks within the study area?
3. What challenges are associated with peer-to-peer lending in relation to return on assets of listed banks?
4. What strategies can be adopted to optimize peer-to-peer lending in order to improve return on assets of listed banks?

1.5 Significance of the Study

This study is significant to a range of stakeholders. For policymakers and regulators, the findings offer evidence to guide the design of frameworks that support healthier outcomes around return on assets of listed banks. For managers and practitioners within Ogun State, the study provides practical insight into how peer-to-peer lending can be better managed. Finally, it contributes to the academic literature on finance / banking by extending existing knowledge into a specific empirical context, and offers a reference point for future researchers.

1.6 Scope of the Study

The study is limited to an examination of Peer-to-Peer Lending and its relationship with return on assets of listed banks within the context of Ogun State. It reflects a BSc-level scope of analysis and relies on data and perspectives available within that scope; generalizing the findings beyond this specific context should therefore be done with appropriate caution.