Credit Management In The Banking Industry: A Case Study Of Nigerian Agricultural And Cooperative Bank And First Bank Of Nigeria Plc

📄 Project Abstract

The dilemma facing the Nigerian banking industry as a result of high incidence of loan (credit) default by corporate and individual customers alike is multifarious and has now attained an alarming proportion. As a result of this, some banks have recently categorized more than 45% of their loan (credit) portfolio as non-performing or critical assets. This decision has been blamed on the various government policies, especially those of the 1980s and 1990s, typically called the Structural Adjustment Programme (SAP). This period was characterized by fall in oil revenue and the resultant balance of payments crisis. Government needed to take steps to arrest the situation because of the danger it posed on the Nigerian economy in general and the financial sector, in particular. It resulted in corporate insolvency and therefore dealt a permanent damage to the economic survival of the country as a whole. This has necessitated our suggestion that there is need for an efficient and effective credi...