This study examined “Bank lending and the effect of non-performing credits in the Nigerian economy” A case study of First bank of Nigeria Plc, Effurun, Delta state. The findings revealed some of the major causes of non-performing credits (bad debt) existing in the Nigeria banking sector today. The researcher also showed how these bad debts could be identified and how they could arise in the course of the lending business.
The measures to combat non-performing credit were not left out in the research work. As regards the methodology used in this study, the simple percentage statistics was used in analyzing responses from questionnaires which was administered to bank staff of First Bank of Nigeria Plc. Finally a recommendation was given by the researcher on how to prevent bad debt to a more bearable level.
1.1 Introduction
In this section, Bank Lending and the Effect of Non-Performing Credit on the Nigerian Economy is discussed, with relevant and recent citations. As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the aim and objectives of the study. Others are significance of the study, scope of work, research hypothesis and questions, limitation of the study and definition of terms.