This article examines the effect of credit risk management on the performance of commercial
banks in Nigeria between 2009 and 2023. Using an ex-post facto research design, secondary
data were obtained from the Central Bank of Nigeria (CBN) statistical bulletins and banks’
annual reports. The model employed return on assets (ROA) as a proxy for bank performance,
while non-performing loans (NPLs), cash reserve ratio (CRR), and interest rate (INTR) were
used as measures of credit risk. Ordinary Least Squares (OLS) regression was applied to
evaluate the relationships. The results reveal that NPLs had a positive but statistically
insignificant effect on ROA, while CRR also showed a positive but insignificant relationship.
Conversely, interest rates exhibited a negative but insignificant impact on profitability. The
joint F-test further confirmed that credit risk variables did not significantly explain variations
in bank performance within the article period. These findings suggest that other structural,
institutional, and macroeconomic factors play a more decisive role in shaping profitability
outcomes than the credit risk indicators considered. The article concludes that while credit risk
management remains a core function of banking operations, its direct influence on profitability
in Nigeria is limited. It recommends strengthening credit recovery mechanisms, improving
operational efficiency, enhancing corporate governance, and diversifying income streams to
improve the resilience and performance of Nigerian commercial banks.
Ime T. Akpan· IIARD INTERNATIONAL JOURNAL...· 0 citations
This article investigates the effect of recapitalization on the performance of deposit banks in
Nigeria, particularly in the context of recent macroeconomic challenges and the Central Bank of
Nigeria new proposed recapitalization policy slated for implementation beginning in 2025.
Despite previous consolidation reforms in 2004–2005 that raised the minimum capital base to ₦25
billion and reduced the number of banks to 25, the sector continues to face issues related to
inadequate capital buffers, weak intermediation, and exposure to systemic risks. The article
employed an ex-post facto research design and panel least squares regression, analyzing
secondary data from 2010 to 2023 across five leading Nigerian banks (such as Access Bank, Zenith
Bank, First Bank, Stanbic IBTC, and Ecobank). Key performance indicators such as Return on
Assets (ROA), Capital Adequacy Ratio (CAR), Liquidity Ratio, and Non-Performing Loan Ratio
(NPLR) were used to assess bank performance, three hypotheses were tested. The findings
revealed that recapitalization has a statistically significant positive effect on profitability,
liquidity, and asset quality, though the impact varies across banks. The results support both the
Financial Intermediation Theory and Capital Buffer Theory, emphasizing the role of robust capital
structures in ensuring financial stability, profitability, and efficient risk management. The article
concludes that while recapitalization is a vital regulatory tool, it must be complemented by broader
reforms in corporate governance, risk management, and financial innovation to achieve a resilient
banking system. The findings offer timely insights for policymakers, regulators, and stakeholders
as Nigeria prepares for a new era of financial sector transformation.
Ime T. Akpan· INTERNATIONAL JOURNAL OF SOC...· 0 citations
We use cookies to run the site and, with your consent, for analytics and to show ads.
See our Cookie Policy.
