CREDIT MANAGEMENT IN THE BANKING SECTOR AND ECONOMIC GROWTH OF NIGERIA
ABSTRACT
In Nigeria, the banking sector is an important part of the financial system, the banking sector dominate the Nigeria financial system as it accounts for about 90% of the total assets in the system. This study is carried out to examine credit management in the banking industry and economic growth in Nigeria. Statistical Package for Social Science (SPSS) and Analysis of Variance (ANOVA) were applied to validate the result spanning across 2000-2013. The study relies on purely secondary data. Lending is one of the major functions of bank though most risky any bank that wants to remain in business must lend.
The study finds that bank loan and advances accounts for about 98.2% contribution on economic growth for the period under study. The study concludes that there exists a relationship between loan and advances and economic growth and a negative relationship between interest rate, non performing loan and economic growth. The study recommends that CBN should strengthen the banking sector to ensure improved credit flow, also character and financial statement of the borrower should be assessed properly to reduce non performing loan and CBN should lower its maximum rediscount rate to enable bank fix low interest rate thereby enhancing the growth of the economy.
CHAPTER ONE
Introduction
1.1 Overview Of The Study
Bank credit has been the responsibility of Central Bank of Nigeria, in order to manage our monetary system; it is also one of the instruments of monetary policy that can be used for economic system. Various sectors of the economy require finance for different purposes; one main purpose is to promote economic activities, the issue of credit becomes necessary as these economic agents do not have the ability to raise the required capital for the execution of their plans. The availability of bank credit allows firms to increase production, output and efficiency and in turn increase the profitability of banks (Agbada, 2010).
Banks major objective is to facilitate technological innovation through their intermediary roles; they provide means by which funds can be transferred from surplus units in the economy to the deficit units and this role is performed primarily through the acceptance of deposits of different categories and characteristics for onward lending by way of Loan, Advances and Overdraft. With the giant strides made by mankind in science and technology, banks as forefront institutions in satisfying human needs have undergone dramatic changes in their function ranging from settlement of debt, enhancement of international trade through the provision of letter of credit services, traveler’s cheque services, purchase and sale of foreign currencies, provision of business and advisory services, acting as agents of customers at Central Bank of Nigeria, trustees and executor of estate e.t.c.
Financial intermediation can be a casual factor for economic growth. According to Nwaru and Okorontah(2014), a 92.5% reduction in overall credit causes a reduction in the level of GDP by around 1.5%. Similarly, economic growth can be a casual factor for financial development. The economy within the present dispensation can stand the test of time without banks and other financial institutions. The bank industry is known for the provision of a basket full of inter-related services to individuals, business units, non-profit oriented organization as well as government.
In the history of development of the Nigerian banking industry, it can be seen that most of the failure experienced in the industry prior to consolidation era were result of imprudent lending that finally led to bad loans and some other unethical factors (Abdulraheem and Fatima, 2010). It is more important to note that the consolidation process in the banking sector or has however assisted in augmenting the capital base of Nigerian banks and as such increasing their ability to administer more loans for the growth and development of the economy. The sectors ability to fulfil this function is an identified impetus for the Nigerian government in achieving its dream of being among the most developed economies of the world in the year 2010. It is an open secret now that banks advance a major of their deposits to borrowers and keep smaller parts of deposits to customers on demand, even then the customers of the banks have full confidence that the deposits lying in the banks are quite safe and can be withdrawn on demand which is in line with Bank and Other Financial Act (BOFIA) 1991.
Lending and credit management is very vital to banks which if not properly carried out can hinder the effective operations of the banks, improper lending decision which leads to accumulation of huge debts that adversely affect banks effectiveness. It is therefore expedient that bank managers should be equipped with better information, principles, techniques required for effective lending rather than regarding them as a mere guideline which have limitation, lending is highly subjective in nature, the final analysis depends on the judgement of the lender hence in making final judgement, the lender must review all techniques, principles and knowledge acquired through environment and project analysis. The credit character and prospects of the borrower must also be scrutinized.
However it is sad to note that the Nigerian banking industry has not lived up to expectation, in this regard the industry has been bedeviled by mass failure and distress between 1990 and now, most industry have attributed this experience to a number of decisions chief of which will form the focus of this study, insider abuse and credit management.
1.2 Statement Of The Problem
Today, the increasing financial improprieties, insolvency, nonperforming loan, distress in banks and near collapse of the financial system accounted for the company and quest by business community for total economic recovery.
This study identifies the problem of bank loan and advances on economic growth and development.
Secondly, the unbearable financial burdens that bank customers bear in the course of repaying these loans as a result of high interest charges, penalties etc. This study also identifies the problem of nonperforming loan on economic growth of Nigeria
The foregoing problem needs to be assessed in order to advance a more realistic measure which if properly implemented will bring about dramatic changes in the banking industry.
CHAPTER TWO
2.0 Literature Review
2.1 Introduction
The review of relevant literature is the main topic of this chapter. A literature review covers theoretical and methodological contributions to a certain issue in addition to the state of knowledge at the time of writing. It provides information about the state of the art in relation to the subject you are writing about. It examines the body of work on the chosen subject. The literature evaluation in this study comprises the …
Procedure for Downloading the PDF (Docx) Material
Credit Management in the Banking Sector and Economic Growth of Nigeria can be downloaded by requesting the full set of materials at the project or seminar cost. The document will be sent via Microsoft Word (MS-Word) format via WhatsApp (e-mail) following payment confirmation.
| Seminar Material Cost ₦3,000 | Project Material Cost ₦5,000 |
Request Complete Material
 | Click here to request the Complete Material via WhatsApp including;
|
TABLE OF CONTENTSPRELIMINARY PAGES
- Title page
- Approval page
- Dedication
- Acknowledgement
- Table of Contents
- Abstract
INTRODUCTION
- ⋮
LITERATURE REVIEW
- 2.1 Introduction
- 2.2 Conceptual Review
- 2.3 Theoretical Framework
- ⋮
- 2.4 Empirical Studies
CHAPTER THREE
RESEARCH METHODOLOGY
- 3.1 Introduction
- 3.2 Research Design
- 3.3 Population of Study
- 3.4 Sampling and Sampling Technique
- 3.5 Validation of Research Instrument
- 3.6 Method of Data Collection
- 3.7 Method of Data Analysis
- 3.8 Questionnaire Administration
- 3.9 Ethical Consideration
- 3.10 Statistical Analysis
CHAPTER FOUR
DATA ANALYSIS, RESULT AND DISCUSSION
- 4.1 Introduction
- 4.2 Presentation and Analysis of Data
- 4.3 Re-statement of Research Questions
- 4.4 Test of Hypotheses
- 4.5 Discussion of Findings
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
- 5.1 Introduction
- 5.2 Summary of Findings
- 5.3 Conclusion
- 5.4 Recommendation
- 5.5 Suggestion for Further Study
REFERENCES
APPENDIX A - “QUESTIONNAIRE”
Disclaimer for Complete Material Utilization
The displayed research work titled "Credit Management in the Banking Sector and Economic Growth of Nigeria" is stated as a research guideline towards accomplishing your assigned project / seminar research work. All the research materials on this website are ONLY for research purposes and should be used as a guideline in developing your research work. For no reason should you copy word for word as projectlist.com.ng will not be liable for any who copied the material. By ordering the complete research guideline, it signifies that you've accepted our terms of service.
PRELIMINARY PAGES
- Title page
- Approval page
- Dedication
- Acknowledgement
- Table of Contents
- Abstract
INTRODUCTION
- ⋮
LITERATURE REVIEW
- 2.1 Introduction
- 2.2 Conceptual Review
- 2.3 Theoretical Framework
- ⋮
- 2.4 Empirical Studies
CHAPTER THREE
RESEARCH METHODOLOGY
- 3.1 Introduction
- 3.2 Research Design
- 3.3 Population of Study
- 3.4 Sampling and Sampling Technique
- 3.5 Validation of Research Instrument
- 3.6 Method of Data Collection
- 3.7 Method of Data Analysis
- 3.8 Questionnaire Administration
- 3.9 Ethical Consideration
- 3.10 Statistical Analysis
CHAPTER FOUR
DATA ANALYSIS, RESULT AND DISCUSSION
- 4.1 Introduction
- 4.2 Presentation and Analysis of Data
- 4.3 Re-statement of Research Questions
- 4.4 Test of Hypotheses
- 4.5 Discussion of Findings
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
- 5.1 Introduction
- 5.2 Summary of Findings
- 5.3 Conclusion
- 5.4 Recommendation
- 5.5 Suggestion for Further Study
REFERENCES
APPENDIX A - “QUESTIONNAIRE”
Disclaimer for Complete Material Utilization
The displayed research work titled "Credit Management in the Banking Sector and Economic Growth of Nigeria" is stated as a research guideline towards accomplishing your assigned project / seminar research work. All the research materials on this website are ONLY for research purposes and should be used as a guideline in developing your research work. For no reason should you copy word for word as projectlist.com.ng will not be liable for any who copied the material. By ordering the complete research guideline, it signifies that you've accepted our terms of service.
Frequently Asked Questions (FAQ)
Can this topic “Motivation and Productivity in Public Enterprises” be used for Public Administration (PA) Project?
Yes it can be utilized for research — This is public cutlery on the ineffectiveness characteristics of the public sector. The question here is what actually is responsible for the general low performance of workers in the public sector?. The gap between poor motivation and low productivity in state-owned − corporation has to be filled. The environment in which its average worker performs his job seen to be unfavourable to his or her maximum contribution to the goals and objective of the organization for these reasons, therefore this research work is aim at identifying roles motivation is playing in enhancing the productivity of Delta State Water Corporation and other state enterprise. Recommendations were also forwarded based on the scientific approach of data collection. Some of these recommendations include …
Can the material for “The Lexico-Semantic Features of Nigerian English in Newspapers” be used as a guide for Linguistics and Communication Project?
Yes it can be used — The study focuses on the Lexico-Semantic features of Nigerian English in Daily Times, Punch and Vanguard Newspapers. This is an attempt to investigate the extent to which Nigerian columnists and editorials use the Lexico-semantic features of Nigerian English for their reportings. Anchored on theoretical premise of the contextual theory of meaning, the data for the study was arrived at through a random sampling technique which enabled the researcher to select at random Newspapers from the months of January to December in the year 2012 to 2016. The identified Lexico-Semantic features of Nigerian English which were found in these dailies were analyzed using the Lexico-Semantic variation of Nigerian English as identified by Adegbija (2004). It is evident from the findings that …
Can the material for “Management of Funds for School Effectiveness” be used as a guide for Education Project?
Yes it can be used — This research investigated the management of school funds for school effectiveness in Ifako-Ijaiye local government area of Lagos state. Three research questions and three null hypotheses were formulated to guide the study. A 24 item researcher developed questionnaire was administered and retrieved from 141 teachers, 15 principals, and 15 bursars selected through proportionate stratified random sampling technique from the local education district in Ifako-Ijaiye local government area of Lagos-state was used to find out how secondary school principals manage school funds for school effectiveness. Descriptive statistics and a one-way ANOVA were employed for data analysis. Results of the study showed that issuing receipts for all monies collected from parents, students etc, involving sectional and departmental heads in budget preparation; rendering financial …
Can the material for “Production of Bioethanol from Millet Hust” be used as a guide for Science Laboratory Technology (SLT) Project?
Yes it can be used — The study determines the Production of Bioethanol from Millet Hust. In achieving this aim, the following specific objectives were laid out to produce bioethanol from Millet Hust and identify the usefulness of Millet Hust for bioethanol production. Bio-ethanol is ethanol derived from the process of fermentation of biological materials. This is accomplished by the action of micro organism like yeast. Since the micro organism utilizes only simple sugars, starchy and cellulosic materials are first converted into simple sugars by a process of hydrolysis before they are subjected to fermentation. Data used in this work is derived primary from secondary sources. The methodology therefore, is basically documentary in nature. This involves learning new facts and principles through the study of documents …
Can the material for “Privatization of Public Enterprises Its Effect on Consumer in Nigeria” be used as a guide for Public Administration (PA) Project?
Yes it can be used — This study has focused on privatization of state owned enterprises in Nigeria. A case study of Nigeria Telecommunication (NITEL). The major problem stem from inadequate and irregular finding, political interference in operations. The data collection instrument used was the primary and secondary data, two statistical tools were used for evaluating the finding of the study the simple percentage for analyzing the respondents and chi-square (X2) for testing the hypothesis. This study is in five chapters viz: The introduction, literature review, research methodology, data presentation, analysis and interpretation, summary, conclusion and recommendation. Majority of the respondent’s response that privatization has brought more efficiency and also that privatization policy of NITEL has contributed to the morale of the workers and employee productivity. It is also …
Can the material for “The Influence of Socio Economic Background on Academic Achievement of Upper Basic Students” be used as a guide for Education Project?
Yes it can be used — The study examined the influence of socioeconomic background on the academic achievement of students in selected public secondary schools in Makurdi Local Government Area of Benue State. The stratified sampling technique was used to select 120 students from five public schools, while the simple random sampling technique was used to administer the questionnaire (pre and post-test). Also, data on student’s academic achievement was obtained from student’s scores in four selected subjects. Data obtained was analyzed using descriptive and inferential statistical techniques. Multiple regression result revealed that parental socioeconomic background significantly influenced students’ academic achievement (p<0.05); as students whose parents had better jobs and higher levels of educational attainment and who were exposed to more educational and cultural resources at home tended …
Can the material for “Knowledge and Awareness of the Effect of Drug Abuse Among Secondary School Students in Owerri” be used as a guide for Mass Communication (MC) Project?
Yes it can be used — The study was carried out to examine the Knowledge and Awareness of the Effect of Drug Abuse among Secondary School Students in Owerri. In achieving this aim, the following specific objectives were laid out to identify the most commonly abused substances and the factors that contribute to the use of these substances and find out the knowledge and perception of the health risk and other implications of drug use among students. The research design used in this report is descriptive design, utilizing questionnaire method to obtain information from the respondents for this project. A total of 150 (one hundred and fifty) respondents were selected for this study to represent the entire population of the study. Primary data were collected from …
Is the topic “Workers’ Perception of Retirement and Its Implication on Productivity” recommended for Public Administration (PA) Project?
Yes it is highly recommended — This research work was made to discover how workers perceive retirement and its implication for productivity using Federal Polytechnic, Oko as a case study. The case study is an institution of higher learning. It was established in 1992 through the collective effort of the community. It is located in Orumba North Local Government Area in Anambra State. The institution comprises of academic, non-academic and junior staff. This research work is intended to see whether it has anything to do with the way workers discharge their duties, if it is affecting them negatively to suggest possible ways that will help in correction of mistakes. Moreover, the study used one thousand, four hundred and three (1, 403) workers of which five hundred …
Can this topic “Student Perception of Secretarial Profession in the Era of Information and Communication Technology” be used for Secretarial Education Project?
Yes it can be utilized for research — The study was carried out to examine the Student Perception of Secretarial Profession in the Era of Information and Communication Technology using Osun State Polytechnic as a case study. In achieving this aim, the following specific objectives were laid out to ascertain the range of new office technologies existent, investigate the level of usage of these new office technologies and identify the level of productivity of the secretaries in Osun state polytechnic. The research design used in this report is descriptive design, utilizing questionnaire method to obtain information from the respondents for this project. A total of 180 (one hundred and eighty) respondents were selected for this study to represent the entire population of the study. For null hypotheses were …
Can this topic “The Impact of Land Use Zoning Control on Real Estate Development” be used for Estate Management (EM) Project?
Yes it can be utilized for research — The study examines the Impact of Land Use Zoning Control on Real Estate Development using Bwari Area Council, FCT Abuja as a case study. In achieving this aim, the following specific objectives were laid out to ascertain whether the powers exercised by the state governors under Land Use Act and the general over − view of this Act pose a threat to effective land use, identify the possible problems associated with property development as a result of the Act, suggest the necessary adjustments that need to be made to the revocation, and compensation of rights of occupancy in sections of this Act, in order to promote property development, suggest an appropriate technique for valuing properties compulsorily acquired under the Act. …