Information and Communication Sector and Return on Equity in Nigeria: A Disaggregate Approach (1986-2024)

Maximizing Return on Equity is a key performance goal for Nigeria's banking sector, particularly in an era where Information and Communication sector plays an increasingly central role in operational efficiency and profitability. This study examines the long-run impact of Information and Communication sector components telecommunications, print media, mass media, and multimedia on return on equity in Nigeria from 1986 to 2024. Employing the Dynamic Ordinary Least Squares (DOLS) approach, results revealed that print media significantly reduces return on equity, reflecting the declining influence of traditional media channels on banking profitability. In contrast, mass media exerted a significant positive impact, underscoring its growing importance as a profitability driver. Telecommunications and multimedia displayed negative but statistically insignificant effects, suggesting untapped potential for value creation. e model demonstrates a strong explanatory power (R² = 0.94), and diagnostic tests confirm normality and homoscedasticity, with mild serial correlation observed. e paper recommended that the Central Bank of Nigeria (CBN) and Nigerian Deposit Insurance Corporation (NDIC) should invest in broadcast and electronic media campaigns to improve financial literacy, drive inclusion, and enhance banking performance.