Problems and Consequences of Bad Loan in Nigeria Banks: A Study of United Bank for Africa UBA

Abstract

This study examined the problems of loan management in Nigerian banks, a case study of United Bank for Africa (UBA). A limited number of studies have considered the survey perspective of non-performing loans in Nigeria, but most of the studies have not investigated the sources and consequences of bad loan management in Nigeria’s banking industry. The survey research design methodology was adopted, and data were collected and analyzed by a quantitative approach. The descriptive statistics were cantered on frequency distribution, percentage distribution, weighted mean score, standard deviation, and ranking. From the result, it could be deduced that most of the respondents to the questions were male, with a frequency and percentage distribution of 17 (58.6 per cent), while 10 (34.5 per cent) were female. This proves that a larger percentage of the people who responded to the questionnaires are male. This provides adequate information on Nigerian banks’ staff engagement with evidence that it tends toward male participation than female. Also, the consequences of loan management problems were identified. There are many consequences to the problem of loan management. Meanwhile, this study pays attention to hidden costs, bank reputation, time wasted and imbalance of loan size. The result presents time wasted issues as the dominant consequence of loan management problems. The study concluded with identifications of four indicators to situate five variables to explain the loan management problem. The variables were analyzed under role assign or responsibility, preferential treatment, objectives/ subjective and conflicting structure of loan application.

Full-Text (PDF)