ABSTRACT:

In recent times, a new high technology, information, and innovation based environment has gradually taken the centre stage in the global economy particularly in the banking sector. The Nigeria banking sector has responded appropriately to the introduction of these new technologies and innovations. This study therefore uses the Value Added Intellectual Coefficient (VAIC) model to investigate the effect of the Intellectual Capital indices (i.e. Human Capital Efficiency, Structural Capital Efficiency and the Capital Employed Efficiency) on the Employee Productivity of banks in Nigeria. The data were collected from the annual reports of six banks and analysis was conducted using longitudinal time series data generated from the annual reports and accounts of the selected banks in Nigeria spanning from year 2003-20012. The multiple regression analysis method was adopted for the test of the hypothesis. The SPSS statistical software (version 17.0) was used for the data analysis. The study showed that there was a positive and significant relationship between components of VAIC and employee productivity of the banks in Nigeria (VIAC coefficient = 1.186, R2c = 0.806, R2t = 0.49, P < 0.05). From the result stated above, it is thus established that indeed intellectual capital has positive and significant effect on Employee Productivity of banks in Nigeria.