Chapter One — 1.1 Background to the Study

Over the past decade, the relationship between related party transactions and revenue generation has become a subject of considerable debate among scholars and industry practitioners alike, particularly within the context of Selected Commercial Banks in Nigeria where operating conditions differ markedly from more developed markets.

Within the context of Selected Commercial Banks in Nigeria, this relationship carries particular significance. Organizations in this setting operate under a distinct combination of economic, regulatory, and market conditions that may amplify or dampen the effect of related party transactions on revenue generation, making a context-specific inquiry both timely and necessary.

1.2 Statement of the Problem

While related party transactions is widely discussed in policy and industry circles, empirical evidence on its actual effect on revenue generation within Selected Commercial Banks in Nigeria remains sparse and, in places, contradictory. This lack of localized, rigorous evidence makes it difficult for decision-makers to know with confidence whether current approaches to related party transactions are helping or hindering revenue generation — a gap this study sets out to close.

1.3 Objectives of the Study

1. To examine the effect of Related Party Transactions on revenue generation in Selected Commercial Banks in Nigeria.
2. To assess the extent to which related party transactions influences revenue generation within the study area.
3. To identify the challenges associated with related party transactions in relation to revenue generation.
4. To recommend strategies for optimizing related party transactions in order to improve revenue generation.

1.4 Research Questions

1. What is the effect of related party transactions on revenue generation in Selected Commercial Banks in Nigeria?
2. To what extent does related party transactions influence revenue generation within the study area?
3. What challenges are associated with related party transactions in relation to revenue generation?
4. What strategies can be adopted to optimize related party transactions in order to improve revenue generation?

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 revenue generation. For managers and practitioners within Selected Commercial Banks in Nigeria, the study provides practical insight into how related party transactions can be better managed. Finally, it contributes to the academic literature on accounting by extending existing knowledge into a specific empirical context, and offers a reference point for future researchers.

1.6 Scope of the Study

In terms of scope, this BSc study confines itself to Selected Commercial Banks in Nigeria, focusing specifically on how related party transactions relates to revenue generation within that setting. Findings are interpreted within these boundaries rather than as universal claims applicable to every organization or market.