MEASURES NECESSARY TO MINIMIZE THE HIGH INCIDENCE OF BAD DEBTS IN NIGERIAN COMMERCIAL BANKS

The main purpose of this study is to help enhance the incessant rate of bad debts in Nigeria especially in our commercial banks. From the time in memorial our Banks have been faced with bad debts problems due to certain roles they perform in the finance our economic activities. This role of financing and lending is largely enhanced by the mobilization of deposits from customers and channeling them into viable and profitable ventures. This study is further categories under five chapters in order to help for easy understanding of the study on how to minimize the high Incidence rate of bad debts in our commercial Banks more especially the now new generation Banks. It throws more light about failure of people more especially the banks, the new generation bank and commercial Bank to meet up with the objective which they are known for. For sometimes now, the Central Bank of Nigeria (CBN) has been at the center of controversy surrounding. The 25 billion naira imposed to commercial Banks in order to settle outstanding debts owned by them to their customer in case they run into liquidity problem or bankruptcy. Bad debt has been on increase over the years and this can cause loss of confidence in the Banking industry if people continue to default in loan repayment, the chances of other people obtaining loan facility can become very much reduced. Commercial Banks in the same vain should here.