This paper examines the impact of liquidity on Nigerian Banks profitability. The purpose of the study was to establish the relationship between the liquidity and profitability of the banking sector in Nigeria and to examine whether liquidity has a positive impact on bank’s profits within the period under study. Randomness was employed in selecting the sample size for the research to eliminate bias. Using systematic method, five banks were selected as the sample size to cover the period of the study from 2003 – 2012. Linear regression were used in the analysis and the results revealed that there is positive relationship between ROA and CBTOTL so also the same thing with ROE and CBTOTL.
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