THE CHALLENGES OF LOAN RECOVERY IN NIGERIA COMMERCIAL BANKS (A STUDY OF FIRST BANK PLC)
Abstract
ABSTRACT
Loan recovery remains one of the most pressing challenges facing commercial banks in Nigeria. This study investigates the challenges associated with loan recovery in Nigerian commercial banks, with particular emphasis on First Bank Plc. The research explores the underlying causes of loan defaults, the effectiveness of recovery strategies, and the impact of non-performing loans on banking operations.
Using a combination of qualitative and quantitative methods, data were gathered from bank staff, customers, and institutional records. Findings revealed that poor credit appraisal, economic instability, lack of borrower discipline, weak legal enforcement, and internal inefficiencies significantly contribute to loan recovery challenges.
The study concludes that strengthening credit policies, improving monitoring systems, and enhancing legal frameworks are critical to addressing these issues. Recommendations are provided to improve loan recovery practices and ensure financial stability within the banking sector.
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