Debt Management and Profitability of Nigerian Deposit Money Banks

Abstract The study examines debt management and profitability of Nigeria deposit money bank. The research design adopted for the study is the ex-post facto research design. The population of the study comprises of all of the quoted deposit money banks in the Nigeria Exchange Group as at 31st Dec. 2023. The sample size of the study is 19 quoted deposit money banks in Nigeria. This study used purposive sampling technique to select the subjects for the study. Data obtained from secondary source were analyzed using STATA 14 computer software. The result from the analysis reveal that; Effective debt management does not improves profitability in Nigerian deposit money banks; there is a significant relationship between effective debt management and financial transparency in Nigerian deposit money banks; there is a significant relationship between effective debt management and liquidity in Nigerian deposit money banks. In line with the findings, the study recommends that; the management of Nigerian deposit money banks especially credit officers must do diligence by adhering to prudential guidelines when given out credit facilities to staffs, furthermore, Nigerian deposit money banks must put in place sound credit-granting process, strictly hold fast to know your customer (KYC) system, applying effective measures in measuring and monitoring of credit and ensure effective controls over credit risk, lastly, Nigerian deposit money banks should ensure guarantee of credits which would serve as a shield against credit loss of customers fund.