Research Objective: This study investigates the effect of administrative costs on deposit mobilisation efforts of banks in Nigeria, focusing on wages and salaries, regulatory costs, and advertising and promotion expenses.
Methodology: Utilising an ex-post-facto research design, the study analyses secondary time-series data from 2012 to 2021, sourced from the annual reports of 23 banks listed on the Nigeria Exchange Group (NGX) as of December 31, 2021. A purposive sample of five major banks—Access Bank Plc, First Bank Nigeria Plc, Guaranty Trust Bank Plc, United Bank for Africa Plc, and Zenith Bank Plc—was selected based on their extensive branch networks and industry ratings.
Findings: The regression analysis reveals that wages and salaries have a significant positive effect on total deposits, while regulatory costs exhibit a negative and non-significant effect. Advertising and promotion costs also show a non-significant positive impact on total deposits.
Conclusion: The study concludes that among the administrative costs examined, only wages and salaries are significant predictors of total deposits.
Recommendations: It is recommended that banks enhance staff remuneration and benefits to improve performance and retention, that the federal government reduce regulatory costs to facilitate effective bank operations, and that banks intensify their advertising efforts through online and digital marketing to better promote their products and services.