Journal of
Economics and International Finance

  • Abbreviation: J. Econ. Int. Finance
  • Language: English
  • ISSN: 2006-9812
  • DOI: 10.5897/JEIF
  • Start Year: 2009
  • Published Articles: 363

Full Length Research Paper

An application of analytic hierarchy process (AHP) to investment portfolio selection in the banking sector of the Nigerian capital market

E. O. Oyatoye1*, G. U. Okpokpo2 and G. A. Adekoya1
  1Faculty of Business Administration, University of Lagos, Akoka - Yaba, Lagos, Nigeria. 2Centre for Management Development, Shangisha, Lagos, Nigeria.
Email: [email protected]

  •  Accepted: 20 October 2010
  •  Published: 31 December 2010



The importance of investment to the individual, a nation and the world economy cannot be over emphasized. Investment involves the sacrifice of immediate consumption to achieve greater consumption in the future. The Nigerian banking sector has made tremendous success in the recent past. All the banks that approached the capital market through public offers and right issues to raise their capital base recorded huge success. Investors in bank stocks have enjoyed high returns on investment, despite the slow growth in the nation’s economy. However, the recent financial crisis that started in America, which has caused economy meltdown in many nations of the world and sudden fall in share prices, has brought about a higher risk than envisaged on investors, particularly those investing in bank stocks. This study underlines the importance of different criteria, factors and alternatives that are essential to successful investment decisions by applying the Analytic Hierarchy Process (AHP) in the selection of investment in bank stocks in the circumstances of financial crisis. The study provides recommendation on strategic investment decision options.


Key words: Application, analytic hierarchy process, investment, portfolio selection, capital market.