ABSTRACT

 Over the years, interest rates have remained a subject for critical assessment with diverse implications for savings mobilization and investment promotion. The study is to examine the impact of interest rate deregulation on the profitability ofcommercial banks in Nigeriafor 22 years period (199 -2018). The study primarily ascertain the impact of interest rate deregulation on return on assets, the impact ofinterest rale deregulation on return on equity mid the effect of interest rate deregulation on return on capita! employed of listed commercial banks in Nigeria. The study employed Liquidity Preference theory, The Classical Theory of interest Rate and The Modern Theory of Interest Rate. Ex-post facto research design employed and the data was obtained from secondary sources and the data was obtained from secondary sources from published annual report and banking survey publication. The method of data analysisfor this work will be ordinary least square method (simple regression) and data collected were analyzed using SPSS 22 Version 20. The findings shows that there is no significant impact on the Return on Asset (ROA), Return on capital Employed (ROCE) and Return on Investment (ROI) oflisted commercial banks in Nigeria. The study recommended that Banks should improve their total asset turnover, Turnover on investment, returns on capital employed and diversify in such a way that they can generate more income on their assets and also ensure that certain policy tools such as the money supply, liquidity ratio, maximum lending rate, monetarypolicy rate are effectively managed.