Non-Interest Financial Institutions (NIFIs) in Nigeria, adhering to Islamic principles, play a pivotal role in the financial sector. This study examines the strategic role of training and development (T&D) in equipping their workforce with the skills and knowledge needed to drive financial success, navigate Shariah-compliant practices, and ultimately contribute to the growth of the sector. By using a purposive sample technique, this study looks at how T&D costs affect the financial performance of NIFIs, using JAIZ Bank as a sample. Secondary data from 2018 to 2021, sourced from audited annual reports, regulatory bodies, and industry publications, were analyzed. Training and development costs were measured by the Training and Development Expenses to Revenue ratio, while Return on Assets (ROA) represented financial performance. A significant positive correlation (r = 0.614, p < 0.05) was found via correlation analysis between T&D investment and ROA. The model's strength was proved using linear regression, which was able to explain 66.3% of the variance in ROA. The significance of the ANOVA results (F = 15.745, p = 0.004) supported the null hypothesis' rejection. Increased T&D investment is linked to a demonstrable improvement in financial performance, as indicated by the regression model's TDI coefficient of 1.442. In line with human capital theory, the study offers strong evidence for the beneficial effect of T&D costs on the financial performance of NIFIs in Nigeria. NIFIs are encouraged to invest strategically in tailored training programs, leadership development, and innovation. Establishing key performance indicators for training effectiveness is advised. Future research should explore diverse training programs and conduct longitudinal studies for a deeper understanding of the relationship between employee training and NIFI financial sustainability.
