Abstract
Interest rate liberalisation as part of financial sector reforms was assessed as it affects the performance of banks that experienced the first phase of the Nigerian's liberalisation policy. The paper examines whether the financial performance of the banks improved after the liberalisation policy. The wilcoxon signed rank test was used to test for changes in the following performance measure variables; profitability, deposit lending and operating efficiency. Therefore, the results of the study lend support to the proposition that banks in Nigeria witnessed performance improvement following government's liberalisation programme.
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