Effectiveness of Credit Risk Management on the Performance of Commercial Banks in Nigeria

Banking and Finance — 2025, Undergraduate

This study assessed the effectiveness of credit risk management on the performance of commercial banks in Nigeria. A mixed-methods approach combining questionnaire administration with analysis of financial statements was adopted. Data were analysed using descriptive statistics and regression analysis. The findings revealed that robust credit appraisal, collateral management, and monitoring significantly reduced non-performing loans and supported profitability. The study, however, found weak risk culture and inadequate data in some banks. It recommends strengthened credit policies, enhanced staff capacity, and the adoption of data-driven credit scoring.

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