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The study is on Influence of inflation and reported profit: implication on decision-making. The
study was set to achieve the following objectives:, to determine the extent to which lending decision in
Nigeria banks were affected by inflation between 2006 – 2011, to ascertain the extent to which inflation
has impacted on the reported profits of commercial banks in Nigeria between 2006 – 2011, to examine the
extent to which reported profits under inflationary period affect investment decision of Nigeria banks
between 2006 – 2011, to find out other factors that influence decisions on reported profit apart from
inflation. The research design adopted in this study is ex-post factor research design which is characterized
as events that have taken place in the past. The target population of the study is all the banks quoted in
Nigeria stock exchange. The sample size is the first two new generation banks (FBN and UBA Plc).
Secondary data were sourced from Annual Reports of the banks under study. The data will be presented
using sample table frequency and the formulated hypotheses will be tested using linear regression
technique. The study discovered that there is no significant positive relationship between lending
decision and inflation on Nigerian banks and it is revealed that it could not be established that
inflation has adversely affected reported profits on Nigerian banks within 2006 to 2011 fiscal
year. Also it was found that investment decisions within the reported profits of Nigerian banks
have no direct relationship with inflation within the period under review and finally that
inflation on other decision factors (Gearing and Solvency) has no significant relationship on
reported profit on Nigerian banks. Also the decision of organization obeys the trends and
situation of the economy either in lending or reported profits, investment decisions, gearing and
solvency. Thus in the presence of all these factors inflation and reported profit have negative
influence on decision-making.