KOGI STATE

Faculty of Management Sciences

Journal of MANAGEMENT

ISSN: 3212 - 3122

Angelonu Ejelonu Henry; Oguadinma, Anthony Ikechukwu; Barare Oluwaseyi Saheed and Bukary Njie

Abstract

The research scrutinizes the pivotal role of credit risk management in fostering the industrial growth within Nigeria, titled "Financial Frontiers: The Critical Impact of Credit Risk Management on Industrial Growth in Nigeria." The study aims to delineate the influence of credit term policy, credit standard, and collection policy on the return on assets (ROA). Employing an ex post facto research design, the investigation encapsulated thirteen firms listed on the Nigerian Stock Exchange, focusing on four major industrial goods companies-Berger Paints Plc, Premier Paints Plc, Beta Glass Plc, and Cap Plc. Data spanning from 2014 to 2019 were meticulously analyzed, sourced from annual reports and financial statements. Findings reveal that credit term policy, credit standard, and collection policy significantly and positively influence the ROA. The research advocates that industrial firms should incentivize early credit settlements through discounts to enhance compliance with credit terms and conditions. Furthermore, it underscores the necessity of frequent reassessments of the collection policy, positing that such reviews significantly bolster firm profitability.

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Keywords

Credit Risk Management, Industrial Growth, Return on Assets (ROA), Collection Policy, Nigerian Industrial Sector

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