ABSTRACT

 This study investigated the effect ofdebt management on the performance ofselected commercial banks in Nigeria. The specific objectives tested include, the effect ofDebt management (debtratio, non performing loan, advances) on profit margin ofselected commercial banks, the effect ofdebt management on return on assets ofselected commercial banks in Nigeria and the effect ofdebt management on return on equity ofselected commercial banks in Nigeria. Ex-postfacto research design was adopted while simple regression was employed to test the hypotheses. The study revealed that the estimated coefficients of the regression parameter have both positive and negative signs and thus conform to our a-priori expectation. The implication ofthese sign is that the dependent variables Profit margin (PM), Return on Asset (ROA) and Return on equity (ROE) and is positively affected by debt management (debt ratio, non performing loan, advances). The study also revealed that there is a very high relationship between debt management (debt ratio, non performing loan, and advances) and the various dependent variables that is variables Profit margin (PM), Return on Asset (ROA) and Return on equity (ROE). The research therefore, recommends that credit officers should intensify efforts on theirjob, routine check on customers andprudent approach to recoverloans and advances granted to customers. Equally recommended is that the management of deposit money banks in Nigeria should enhance their skills in credit analysis and loan management. Finally Central Bank ofNigeria and other regulatory bodies shouldpay more attention to banks compliance to relevant provisions ofbanks and otherfinancial institution Act (BOFIA) (1999) andprudential guidelines