Chapter One — 1.1 Background to the Study

Over the past decade, the relationship between blockchain in banking operations and profitability of deposit money banks has become a subject of considerable debate among scholars and industry practitioners alike, particularly within the context of the Nigerian Oil and Gas Sector where operating conditions differ markedly from more developed markets.

the Nigerian Oil and Gas Sector 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

While blockchain in banking operations is widely discussed in policy and industry circles, empirical evidence on its actual effect on profitability of deposit money banks within the Nigerian Oil and Gas Sector 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 blockchain in banking operations are helping or hindering profitability of deposit money banks — a gap this study sets out to close.

1.3 Objectives of the Study

1. To examine the effect of Blockchain in Banking Operations on profitability of deposit money banks in the Nigerian Oil and Gas Sector.
2. To assess the extent to which blockchain in banking operations influences profitability of deposit money banks within the study area.
3. To identify the challenges associated with blockchain in banking operations in relation to profitability of deposit money banks.
4. To recommend strategies for optimizing blockchain in banking operations in order to improve profitability of deposit money banks.

1.4 Research Questions

1. What is the effect of blockchain in banking operations on profitability of deposit money banks in the Nigerian Oil and Gas Sector?
2. To what extent does blockchain in banking operations influence profitability of deposit money banks within the study area?
3. What challenges are associated with blockchain in banking operations in relation to profitability of deposit money banks?
4. What strategies can be adopted to optimize blockchain in banking operations in order to improve profitability of deposit money 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 profitability of deposit money banks. For managers and practitioners within the Nigerian Oil and Gas Sector, the study provides practical insight into how blockchain in banking operations 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

In terms of scope, this study confines itself to the Nigerian Oil and Gas Sector, focusing specifically on how blockchain in banking operations relates to profitability of deposit money banks within that setting. Findings are interpreted within these boundaries rather than as universal claims applicable to every organization or market.