This research will be carried out on the problems and prospects of debt management in Nigeria financial Institutions. This all important research could be said to be timely owing to the state of our financial institution today. Not quite long ago, the Central Bank of Nigeria classified some banks as "distressed". These banks where so classified mainly as a result of over bearing influence of bad debt on the operations of these financial institutions.

In the cause of this research, some important questions will be analysed, these include:

� what are the characteristics of staff in our financial institution?

� To what extent are the common causes of bad debts/ loans affected the operations of financial institution?

� What are the early warnings signs in a potential problem loan?

The sincerity of customer in applying the credit extended to them judiciously and for the purpose, for which it was granted, will also looked unto.

This work will be concluded with recommendations to some measure necessary in order to minimize the growth of bad debts in our financial institutions.

1. Because of the enormity of the problems a campaign such as the current economic recovery that may go as national debts orientation campaign should be place in on distant time.

2. these should be strict monitoring of loan beneficiaries to ensure that fund are granted.

3. security agents should involved in dealing with chronic credit defaulters.

4. government should show interest and help in the efforts of banks occasioned by bad debt is a threat to the economic growth of the nations.

5. efforts should be made to strongly adhere to the credit policy administration in these financial institutions.

6. measures should be taken towards effective recovery of debts.

7. the sincerity of customers towards the utilization of loan found should be verified.

TABLE OF CONTENT

TITLE PAGE II

APPROVAL PAGE III

DEDICATION IV

ACKNOWLEDGEMENT V

PROPOSAL VII

TABLE OF CONTENT IX

CHAPTER ONE

INTRODUCTION 1

1.1 BACKGROUND OF THE STUDY 1

1.2 STATEMENT OF THE STUDY 2

1.3 PURPOSE OF THE STUDY 3

1.4 SIGNIFICANCE OF THE STUDY 4

1.5 SCOPE AND LIMITATION OF THE STUDY4

1.6 DEFINITION OF TERMS 5

CHAPTER TWO

2.0 PRUDENTIAL REGULATION OF NIGERIA BANKING10

2.1 FUNDAMENTALS OF CREDIT ANALYSIS 10

2.2 THE BASIC CRITERIA ANALYTICAL ASSESSMENT OF CREDIT WORTHINESS 11

2.3 THE COMMON CAUSES AND

PROBLEMS OF BAD DEBTS 14

2.4 EARLY WARNING SIGNS.

2.5 FACTORS RESPONSIBLE FOR BAD DEBTS IN BANKS19

2.6 CONSIDERATIONS IN ASSESSMENT OFFICIAL PROPOSALS BY CUSTOMERS 21

2.7 EIGHTEEN CREDIT PRINCIPLES. 25

CHAPTER THREE

3.0 SUMMARY DISCUSSION 27

3.1 RECOMMENDATION 28

BIBLIOGRAPHY 30