+234 813 0686 500
+234 809 3423 853


  • Type:Project
  • Chapters:5
  • Pages:31
  • Format:Microsoft Word
(Banking and Finance Project Topics & Materials)



Chapter one portals the problems associated with the Nigeria commercial banks why serves as the introduction of the problems associated with loan recovery and it also gives the historical development of commercial banks in Nigeria.

Chapter  two, lays emphasis on the loan, origin and deification and how loan playa vital role in loan lending for the economic development and money creation in our society, both the lender and borrower have a duty to per form, for an efficient and effective lending to be carried out.

The conditions which the commercial banks must undergo before granting out loans to customers was emphasized in chapter. Three of these work. Despite the precautions taken by the commercial banks they still encounter series of problems in loan recovery from their customers. Among them are non-repayment of loan, unwillingness to repay etc.

Loan, recovery problems have an adverse effect on availability of funds, due to the customers unwillingness to repay the being borrowed by them when due (i.e at maturity). These problems have great effects on the commercial banks since one of their functions is granting loan to customers. The effects of the non-repayment of loan by customers will not be emphasized. Though there are some remedies/solution to all these.





Loan, origin and definition


Problem associated by Nigerian

Commercial banks in loan recovery


How recovery of loan problems

Affect credit availability







          In recent years, loan recovery problems have been of the main problems that the Nigerian commercial banks has had to face. Those problems have been main target of policy measures all these years, though at a time it become main focus of policy on which was retarded as more pressing and serious each time. Today the situation in Nigerian have become very serious and seemingly intractable.

          The problems of loan recovery in the pigovain sense refers to a situation in which there is a major break down in the repayment agreement resulting in an on due delay in recovery or collection and in which it appears that legal action may be required to effect recovery for in which there appears to be a potential loss. Such a loan there fore requires special attention on the part of the lender if it is to be collected in full within a reasonable period of time after maturity.

          A truism in a commercial bank lending situation is that unless the commercial bank accesses lending risk and devices and effective way of lending against risk related to the borrowers, industry, management or operation in the qualify of the loan portfolio might survive from an increase in past due debt, non accruals and charged off loans. Thus, even if the borrowers have not met the initial criteria for a desirable borrowing customers through interview and credit investigations, the rest point of emphasis in credit risk analysis is in the borrowers financial statement (specially incase of business firm). The later assists the lender to determine whether the firms operations will be able to generate sufficient cash flow to repay debt and whether its asset will be available as collaterals of course the degree of reliance on financial statement analysis is directly related to how they are prepared. Therefore deductions about credit risk levels from the analysis should necessarily be tempered with additional information from the borrower.

          Commercial Banks lending objectives is to make loans that can be repaid. While minimizing her exposure to loans with poor credit quality. However every lending institution finds itself from time to time with loan for which the risk of loss is greater than anticipated, when the loan was made or in which the risk is greater than a lender would ordinarily willingly assume. This is because in the lending environment, there are basically two types of borrowers, the good and bad. It is the category of borrowers that carries a risk of default on loan repayment.


          Commercial bank is defined as an institution that carries out the business of recoving money and collecting drafts from customers subject to the obligation of honouring cheques drawn upon them from time to time by the customers to the extent of the amount available on their current account. Based on this definition, the commercial bank carries out such functions as:

·         Acceptance of deposit

·         Providing loans and overdrafts

·         Drawing of cheques

·         Transferring of money

Commercial banking in Nigeria started in the 1892 with the establishment of the African Banking corporation (ABC) through the instrumentality of Elder Dempster and co a shipping company based on rive pool. Due to initial difficulties, the bank did not exist beyond 1893. in 1894 (BBNA) was incorporated in London and opened a branch in Lagos the same year C.N. Asuzu, Elements of banks with the establishment of industrial an commercial bank. The establishment of this bank was promoted by the nationalist dissatisfaction with the existing foreign banks who discrimed against Nigerian in granting of loans. How ever, indigenous banking era had some failures in the sense that most commercial banks established in that ere collapsed due to the granted loan to Nigerian indiscriminately. The first surviving indigenous bank survived because of the support they get form the regional government (western government) another successful indigenous bank was Agbomagbe established in 1945.

          The third expartriate bank British and French bank (currently) (UBA) was established in 1949, this joined the two other expartriate banks to dominate the banking business in Nigeria, the expartriate bank still neglect the indigenous entrepreneurs and concentrated in international trade and dealing with government.

          Since the inception of the first banking legislation there had been other banking legislating, for instance the banking legislation o 1952 that vested the power of control of banking on the financial secretary. Others are the 1958  banking ordinance and subsequence amendment 1961, 1962,1964 and the banking act of 1990.

          According to Mr. C.N Asuzu in his book element of banking in Nigeria, the first bank emerged in Nigeria was British bank of west African 1894 now first bank of Nigeria followed by Bardays bank Dco 1917 now known as union of Nigeria etc.


          The problems of loan recovering not only in commercial bank but all the banks as a whole is unable to pay back loan as at when due.

          It is true that before a loan is been given to a customer especially customer of a bank collateral is suppose to be present but some time the collateral presented may or may not be able to pay back the loan that is been collected from the banks

          Again is over trusted some managers, due to because the customer always due to because the customer always put or deposit a very amount of money in their bank amy ro may not came to ask them for collateral and at last the whole money will be lost.


          The objectives is to find out the remote cause of the problem which is given out loan and feeling less concern that is not be kan about collateral


          The significance is that before any customer should be given loan he or she should be ask to present collateral and the collateral is not suppose to be cumbersome. Whether person is your child, wife or mother collateral should be presented.


BANKS: These means an institution where people or business can keep their money. Banks also offers services such as lending exchanging or transferring money, they also grant overdraft to their customers

CUSTOMERS: An individual or household that purchases a particular produces for personal or household or industrial use.

COLLATERAL: These refers to money or property which is used a guarantee that some will repay a loan.


Share This


Type Project
Department Banking and Finance
Project ID BFN0735
Price ₦3,000 ($9)
Chapters 5 Chapters
No of Pages 31 Pages
Format Microsoft Word

Leave a comment...


    Type Project
    Department Banking and Finance
    Project ID BFN0735
    Price ₦3,000 ($9)
    Chapters 5 Chapters
    No of Pages 31 Pages
    Format Microsoft Word

    Related Works

    ABSTRACT The project work was carried out to find the problems of loan recovery in commercial banks in Nigeria. The information and data contained in this project work were collected by means of questionnaire and consultation from various journals, textbooks and various websites. The key... Continue Reading
    Loan granting and it's recovery problems on commercial banks (A case study of first Bank plc, Ojo-Alaba branch) This research work was undertaken to assess the Loan granting and its recovery problems on Commercial Banks. The research was intended to achieve the following objectives: To find out the... Continue Reading
    ABSTRACT This research topic “The problem of loan recovery in Nigeria commercial bank” has been a problem of most commercial Banks of Nigeria, using the First Bank of Nigeria Plc, Delta State as a case study. This research work contains five chapters. Chapter one discussed the general... Continue Reading
    (A STUDY OF THE FIRST BANK NIGERIA PLC, UGHELLI) CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF THE STUDY In Nigeria commercial banking dates back to 1894 when the bank of British West Africa (BBWA) was established, since then, the general concepts of the Nigeria commercial bank... Continue Reading
    CHAPTER ONE INTRODUCTION BACKGROUND OF THE STUDY In Nigeria, Commercial Banking dates back to 1894 when the Bank of British West Africa (BBWA) was established. Since then, the general concept of the Nigerian Commercial Banking has changed... Continue Reading
    ABSTRACT This topic lending procedures and loan recovery in banks was tailored described. The piece of work looked into bank services and the rules that guide their monetary policies. Research was carried out on ways of improving bank lending policies and good measures on how money could be... Continue Reading
    ABSTRACT       The objective of this study is to evaluate agricultural loan disbursement and repayment in the Nigeria commercial banks. In particular it is intended to examine the adequacy and repayment in commercial banks. In carrying out this research both. Secondary data were collected through the use of quantitative and qualitative... Continue Reading
    (A CASE STUDY OF GUARANTY BANK PLC, KADUNA) CHAPTER ONE INTRODUCTION 1.1     Background of the Study To every nation, the existence of banking industry is inevitable. This necessitates the need for deposit and credit mobilization. Osayeme (1936) reported that lending has... Continue Reading
    LOAN LOSSES IN COMMERCIAL BANK LENDING A COMPARATIVE STUDY OF GOVERNMENT CONTROLLED AND PRIVATE BANKS ABSTRACT With the unprecedented display of interest in the banking business in the wake of structural adjustment programme, the fear of imminent bank failures as a result of anticipated down turn in the fortunes of banks has remained lightened.... Continue Reading
    THE ROLE OF NIGERIAN COMMERCIAL BANKS IN NATIONAL ECONOMIC RECOVERY (A CASE STUDY OF EQUITY BANK OF NIGERIAN LIMITED) ABSTRACT As a nation progresses through previous stage of economic growth and development, expectations regarding the role of banks in economic growth development and social mobilization assume greater and weightier dimension. This... Continue Reading