Credit Management and Firm’s Financial Performance of Deposit Money Bank in Nigeria

This study investigated Credit Management and Firm’s Financial Performance of Deposit Money Bank in Nigeria. The study was guided by Information Asymmetry Theory and Transaction Cost Theory. An ex-post facto research design was used in the study. The population of the study was all commercial banks in Nigeria with a total of twenty-four (24) banks as of 2023. The sample size for this study was obtained from secondary data of selected seven (7) banks using the purposive sampling technique. Credit management facility had a significant effect on performance as measured by return on asset (Adj R2 = 0.040612, F= 1.973611, p= 0.016466); return on equity (Adj R2 = 0.101017, F= 0.976643, p= 0.009176); and net profit margin (Adj R2 = 0.305936, F= 11.13815, p= 0.000005). It was recommended that Deposit Money Banks in Nigeria should mitigate their independent metrics, Management should Enhance Capital Adequacy and Refine Credit Risk Management Practices.