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There are range of impacts on the Nigeria economy as a result of the non-performing loans. A number of the effects are briefly mentioned below:

1. There was serious cut-off within the importation and refusal to simply accept letter of credit. This has seriously affected international trade and importation of stocks into the country.

2. There was significant issue of trust in the banking sector by the customers. Several may no longer feel free to go to bed since they do not apprehend what will happen to their money.

3. There is high credit risk and it's a high potential risk if not quickly addressed

4. There's the matter of low wealth and poor development levels and these have currently encumbered Nigeria as a whole.

5. This problem has also led to job loss. Most banks are forced to relief a number of their personnel of their jobs.

6. With the problem of inter-banking transaction, there was shortage of liquidity and acute shortage of credit.

7. Most banks currently suffer from what could be described as money drain as customers are withdrawing their money.

8. There also are high fluctuations in stock market development.

9. Most banks are characterised with 'corporation money loss' as a result of the
dangerous loans.

10. Of importance is also the de-cumulation of foreign reserves and pressure on
exchange rate i.e. deprecation.

11. Conjointly, there's the matter of uncertainty in the business-banking sector.

12. Lastly, the economy is faced with a credit squeeze.

SUMMARY

This work has at intervals its capacity dealt extensively with the current national and prevalent issue of non-performing loans and its effects on the banks and economy at large. This work took-off by explaining deeply the concept of banking and bad debt in relevance to contemporary issue.

The causes of dangerous debt also are explained whereas cognizance is also given to the effects of the non-performing loans (unhealthy debt) on the banks and therefore the Nigerian economy.

The issue may not be looked into in its wider perspective due to contract of time and area, but, justice has be done to the topic

CONCLUSION

The problem of non-performing loans and therefore the Nigerian banks could be a topical one, not solely at the national level but additionally at the world issued. Experts and observers have ever sine been watching with cautions how this has been affecting business globally. It's been established here that there is the problem of non-performing loans and additionally that this downside has caused serious alarming challenges in all national spheres. However, some measures are suggested here as a method of curbing future recurrence of such within the future.

RECOMMENDATION

It is believed that if these points are properly considered, it may be good ways that of saving the nation from its present scenario and further stop future recurrence.

i). The CBN to see to correct administration of banks by establishment more viable rules and monitoring plans.

ii). Banks are expected to own time tested trusted and competent MD's to boost sensible company governance.

iii). The ministry of finance should see modalities for enhance banks transparency and avoidance of shady bank practices.

iv). Banks ought to maintain compulsory reserve for uncollectible accounts.

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