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The main aim of this research work is to establish that all things being equal the loan will be safe, properly used and repaid on schedule. But this is gamble in the future. All things may not be equal and things may go wrong such that basis for optimism established and expected do not materialize. This is why the banker should not be left uncovered. The purpose of the research is to evaluate the extent to which commercial banks in Nigeria desire securities for loans in bank in Nigeria desire securities for loan in bank lending – The findings of this study will help to make recommendation and suggestions on how best to improve the situation. In conducting this research work, references were made to works of other authors on allied subjects. But it was discovered that the text dealt more on theoretical and academic aspect of the issue, to the neglect of what is often experienced in dealing with most banks. Thus relevant data were obtained from primary sources and oral interviews were conducted and research questionnaire administered to select persons in the bank. These data were carefully evaluated, classified and summarized into tables appropriate for the statistical testing of the postulated hypothesis. The test of hypothesis employed from the primary sources. Based on the facts that emerged from the analyzed data, it was discovered that there is no effect of securities on Bank lending, despite the fact that lack of security cannot prevent a bank from lending. Recommendations made are in respect of re-introduction of deregulation in the economy by the Federal Government to improve and to diversify bank lending in order to foster rapid economic development.


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