Sound Bank Lending Imperative as a Panacea for Bad and Doubtful Loans in Nigeria

This study attempted to establish the relationship between bank lending and economic growth in Nigeria. Using time series for 1980-2005 data and the method of ordinary least square, it was found that bank lending is positively related to economic growth. Equally, lending rate was found to be positively related to economic growth. The study recommended that lending officers should prioritize monitoring and assessment of laws in order to dictate non-performing loans and to find ways of recovering them rather than allowing them to become bad.