CAUSES AND IMPLICATIONS OF BAD DEBTS IN NIGERIA COMMERCIAL BANKS

ABSTRACT The Nigeria Banking sector has witnessed a lot of set back in the last decade. This is as a result of series of huge bad debts which resulted to many banks going into liquidation. Undue mergers and acquisition has taken place in an effort to cope with the challenges of existence and survival as a result of financial distress which is mainly caused by irrecoverable debts.  It is in an effort to mitigate this problem that this research “Causes and Implications of Bad Debts in Nigeria’s Commercial Bank’s” is most necessary. This research reveals the causes of bad debts in commercial banks as: lack of adequate knowledge of project appraisal techniques, poor economic condition, lack of project monitoring, connected lending, deliberate falsification of account records by the prospective borrower, bad judgment by the banker etc. Once bad debt occurs, series of implication follow immediately or at least in the short run.  These implications adversely influence both the bank in question and the entire economy. To remedy these problems, the research recommended that banks employ only skilled diligent, discreet and professional bankers as their lending officers.  It is also important that the condition of the economy is re-engineered by the economic team.
TABLE OF CONTENTS
Title Pageii Approval pageiii Dedicationiv Acknowledgementv Abstractvii Table of Contentsix
CHAPTER ONE 1.0Introduction 1 1.1Background of the study 1 1.2Statement of the Problem3 1.3Purpose/Objectives of study4 1.4Research Question4 1.5Research Hypothesis5 1.6Significance of the study 6 1.7Scope, Limitation and Delimitations  of the study 8 1.8Definition of terms. 9 References 
CHAPTER TWO 2.0 Review of Related Literature 11 2.1Credit Management In Financial Institutions12 2.2Factors Responsible for Bad Debts in  The Banks 14 2.3Early Warning signals to bad Debt16 2.4General Problems of Bank Lending18 2.5Implication/Effect of Bad Debt on Banks24 2.6Economic Effects of Bad Debts27 References 
CHAPTER THREE 3.1Research Design 32 3.2Area of Study 32 3.3Population of the Study33 3.4Sample and Sampling Technique33 3.5Instrument of Data Collection35 3.6Method of Data Presentation 35 3.7Method of Data Analysis 35 Reference 
CHAPTER FOUR 4.1Data Presentation and Analysis 37 4.2Interviews for Bank Customers 43 4.3Testing of Hypothesis 45
CHAPTER FIVE 5.0Findings, Recommendation and Conclusion 55 5.1Findings 55 5.2Recommendation 57 5.3Conclusion 58 Bibliography 60