Date of Conferral







. Steven Tippins


AbstractThe ongoing failure in the Nigerian financial system has been a source of concern to the regulatory authorities, stakeholders, depositors, and the banking public because of the role these financial institutions played in the Nigerian economy in the last decade. The root of the problem was credit abuse performed by the bank’s credit officers and executive directors which made it challenging for financial institutions to recover the loans granted by the banks. The issue made investors lose their investments and bankers lose their jobs. The crisis resulted in poor asset quality that eventually eroded the Nigerian financial institution’s capital. Using Bikker and Bos 's theoretical framework on bank performance based on analyzing profitability, competition, and efficiency, this study investigate if a relationship existed between credit abuse and non-performing loans in Nigerian financial institutions and insider abuse and high-interest rates in the 10 main Nigerian banks. A quantitative approach was used to determine if high-interest rates and non-performing loans might be responsible for credit abuse in the 10 commercial banks in Nigeria by using regression analysis and Pearson correlation tests. The implications of this study on the practices of financial institutions in Nigeria, are based on changing the inherent risk of credit abuse and high-interest rates in the financial institution and the corresponding effect on the good governance of the bank. The study can help good banking performance and save Nigerian banking sector from distress or collapse, which will have a lasting effect on the banking public and Nigerian society.