CREDIT MANAGEMENT IN THE BANKING INDUSTRY: A CASE STUDY OF NIGERIAN AGRICULTURAL AND COOPERATIVE BANK AND FIRST BANK OF NIGERIA PLC

CREDIT MANAGEMENT IN THE BANKING INDUSTRY: A CASE STUDY OF NIGERIAN AGRICULTURAL AND COOPERATIVE BANK AND FIRST BANK OF NIGERIA PLC

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 credit (loan) management for Nigeria’s banking industry. This is based on comparative analysis of credit management in the Nigerian Agricultural and Cooperative Bank Limited, a development bank and First Bank of Nigeria Plc, a commercial bank. In chapter one, the genealogy of credit management has been looked into in the two banks, while in chapter two, related literatures were reviewed in relation to the topic, i.e. credit management and management concepts. Chapter 3 and four conducted an in-depth study of the credit management strategies of the two banks, and how the banks dealt with the problems that arose therefrom. Lastly, in chapter five, summary, recommendation and conclusion were drawn from the above analyses. Our conclusion from our analysis is that for our banks to survive and be firmly rooted, emphasis must be placed on good management of credit portfolio.

TABLE OF CONTENT

Title page- – – – – – – – – i
Approval page – – – – – – – -ii
Dedication – – – – – – – – -iii
Acknowledgement – – – – – – – -iv
Abstract – – – – – – – – – -v
Table of content – – – – – – – -vi

CHAPTER ONE
INTRODUCTION – – – – – – – -1
1.0 Background of the study – – – – -1
1.1 Statement of the problem – – – – -5
1.2 Purpose of the study – – – – – -6
1.3 Significance of the study – – – – -8
1.4 Research questions – – – – – -9
1.5 Scope of the study – – – – – – -10

CHAPTER TWO

LITERATURE REVIEW – – – – – – -11

CHAPTER THREE

Research methodology – – – – – – -39
Design of study – – – – – – – -40

CHAPTER FOUR

Presentation, analysis and interpretation of data – -48

CHAPTER FIVE

Summary of findings – – – – – – -60
Conclusion – – – – – – – – -61
Recommendations – – – – – – – -62
Suggestions for further research – – – – -64
References – – – – – – – – -65
Appendix I – – – – — – – – -68
Questionnaire. – – – – – – – -69

CREDIT MANAGEMENT IN THE BANKING INDUSTRY: A CASE STUDY OF NIGERIAN AGRICULTURAL AND COOPERATIVE BANK AND FIRST BANK OF NIGERIA PLC