AN EXAMINATION OF THE PROBLEM AND PROSPECT OF CREDIT CREATING BY COMMERCIAL BANK IN NIGERIA 
(A CASE STUDY OF WEWA BANK PLC, ILORIN)
 	
By:
TAIWO IBUKUN TEMITOPE
HND/23/BFN/FT/0126

BEING A RESEARCH PROJECT SUBMITTED TO THE DEPARTMENT OF BANKING AND FINANCE, INSTITUTE OF FINANCE AND MANAGEMENT STUDIES, KWARA STATE POLYTECHNIC, ILORIN.

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF HIGHER NATIONAL DIPLOMA (HND) IN BANKING AND FINANCE

MAY, 2025
CERTIFICATION
This project has been read and approved as meeting the requirements for the award of Higher National Diploma (HND) in the department of Banking and Finance, Institute of Finance and Management Studies, Kwara State Polytechnic Ilorin.

____________________				________________
MR. AJIBOYE W.T.					DATE
(Project Supervisor) 		

__________________				________________
MRS. OTAYOKHE E.Y					DATE
(Project Coordinator) 

	

____________________				________________
MR. AJIBOYE W.T.					DATE
Head of Department (H.O.D)	

____________________				_______________	
DATE
(External Examiner)

DEDICATION
I dedicate this project to Almighty Allah, whom none deserve to be worshiped expect Him. And to my adorable and lovely grandma, who has been with me through thick and thin since the beginning of my journey.

ACKNOWLEDGEMENT 
To Allah be the glory, Great things He has done and greater things He shall do. First and foremost, I thank the creator of heaven and earth for bestowing grace, good health, indefatigable zeal and knowledge on me from the beginning to the concluding part of my Higher National Diploma programme in Banking and finance. I sincerely thank Almighty Allah for making the part of my dream a reality, to HIM alone be the glory forever and ever Amen.
I sincerely appreciate the effort of my project supervisor, MR. AJIBOYE W.T. for his timely and thoroughly supervision of my project work, may Allah perfect your ways sir. It will be sinful for me if I did not greet my lecturers who impact knowledge on me, DR. GBOYEGA, DR. OLOWONIYI, MR. SAFURA, MR. BABATUNDE, and MR. JIMOH ISMAIL, to mention few. Also to extend my gratitude to my colleague in my department.
 I must not fail no appreciate God sent people towards my academic achievement, Mr. and Mrs. Fasanya, my lovely grandma and to my late beloved parent( may their soul rest in perfect peace, Amen). Also my benefactors, my GRANDMA (MRS. TAIWO KUDIRAT), MR. AND MRS. TAIWO MUYIWA, MR KOLADE, MR. and MRS TAIWO LEKAN, ALABI JIBRIL. Thanks for been there for me, love you all.
Thanks you all and Allah blesses you for equipping me with academic and technical knowledge as well as provision which have enabled me to accomplish this task. Once again I am grateful to Allah for his mercies, love and caring for the great opportunity He gave to me to accomplish the task of writing this project.

TABLE OF CONTENTS
Title Page									1
Certification									ii
Dedication									iii
Acknowledgment								iv
Table of Content								vi
Abstract
CHAPTER ONE
1.0	Introduction								1
1.1	Background to the Study						1
1.2	Statement of the Problem 						2
1.3	Research Questions							3
1.4	Objective of the Study 						3
1.5	Research Hypothesis 							3
1.6	Significance of the Study						4
1.7	Scope and Limitation of the Study					5
1.8	Definition of Terms							6
1.9	Plan of the Study							6
CHAPTER TWO
2.0	Literature Review							8
2.1	Conceptual Review							8
2.2	Theoretical Review							17
2.3	Empirical Review							19
2.4	Literature Gap								21
CHAPTER THREE
3.0	Research Methodology						23
3.1	Introduction to Methodology						23
3.2	Research Design							23
3.3	Population of the Study						23
3.4	Sample size and Sample Techniques 					23
3.5	Method of Data Collection						24
3.6	Method of Data Analysis 						25
3.7	Limitations to Methodology						25
CHAPTER FOUR
4.0	Data Presentation, Analysis and Interpretation 			26
4.1	Data Presentation							26
4.2	Data Analysis 								35
4.3	Data Interpretation 							36
CHAPTER FIVE
5.0	Summary, Conclusion and Recommendations 			37
5.1	Summary of Findings							37
5.2	Conclusion								38
5.3	Recommendations							38
	References								39

CHAPTER ONE
INTRODUCTION
1.1	Background of the Study
The banking sector plays a pivotal role in the economic development of any nation by facilitating the flow of funds between surplus and deficit units. One of the fundamental functions of commercial banks is credit creation, which involves granting loans and advances to individuals, businesses, and governments, thereby stimulating investment and consumption (Anyanwu, 2010). Credit creation enhances economic activities by mobilizing idle funds and allocating them to productive uses, making it a critical aspect of financial intermediation in developing economies like Nigeria.
In Nigeria, the performance of the banking sector in credit creation has been significantly influenced by economic, regulatory, and institutional factors. The Central Bank of Nigeria (CBN) plays a regulatory role in ensuring that banks operate efficiently while maintaining financial stability (CBN, 2022). However, issues such as non-performing loans, weak corporate governance, and inadequate risk management practices have constrained the ability of commercial banks to create credit effectively. These challenges have resulted in limited access to credit for small and medium-sized enterprises (SMEs), which are key drivers of economic growth (Sanusi, 2012).
Furthermore, the macroeconomic environment in Nigeria has posed additional challenges to credit creation. High inflation rates, exchange rate volatility, and inconsistent government policies have undermined the capacity of banks to extend credit sustainably. Despite these challenges, the Nigerian banking sector has shown resilience and growth potential, as evidenced by the increasing adoption of financial technologies (fintech) to enhance service delivery and expand credit access (World Bank, 2023).
This study seeks to examine the problems and prospects of credit creation by commercial banks in Nigeria, using Wema Bank PLC, Ilorin, as a case study. Wema Bank, one of Nigeria's oldest banks, has been at the forefront of implementing innovative financial products and services to improve credit accessibility. Understanding the dynamics of credit creation within this institution will provide insights into the challenges faced by commercial banks and identify strategies to enhance their credit creation processes.
1.2	Statement of the Problem
Credit creation is a critical function of commercial banks, enabling the mobilization and allocation of funds to support economic activities. However, in Nigeria, the process of credit creation has been plagued by numerous challenges, including high default rates, inadequate risk management frameworks, and limited access to credit by small and medium enterprises (SMEs). These issues have hindered the ability of commercial banks to adequately support the productive sectors of the economy, leading to reduced economic growth and development. Additionally, the regulatory environment, characterized by stringent monetary policies and fluctuating interest rates, has further constrained the capacity of banks to create credit effectively. This situation has resulted in a persistent gap between credit demand and supply, leaving many potential borrowers underserved.
Furthermore, macroeconomic instability, such as high inflation, foreign exchange volatility, and frequent policy shifts, has exacerbated the challenges faced by commercial banks in Nigeria. These factors not only increase the cost of lending but also discourage long-term investments in critical sectors of the economy. Despite the potential of credit creation to drive economic growth, the inability of banks to overcome these challenges raises concerns about their role in financial intermediation. This study seeks to explore these issues in-depth by examining the specific problems and prospects of credit creation in Wema Bank PLC, Ilorin, to provide actionable insights and recommendations for enhancing the credit creation process in Nigeria's banking sector.
1.3	Research Questions
i.	What are the challenges faced by Wema Bank PLC, Ilorin, in credit creation?
ii.	How does credit creation by Wema Bank PLC impact economic activities in Ilorin?
iii.	What strategies has Wema Bank PLC adopted to enhance credit creation?
1.4	Objectives of the Study
i.	To examine the challenges faced by Wema Bank PLC, Ilorin, in credit creation.
ii.	To assess the impact of credit creation on economic activities in Ilorin.
iii.	To evaluate the strategies adopted by Wema Bank PLC to enhance credit creation.
1.5	Research Hypotheses
Hypothesis 1
H₀₁: 	Wema Bank PLC, Ilorin, does not face significant challenges in credit creation.
H₁₁: 	Wema Bank PLC, Ilorin, faces significant challenges in credit creation.
Hypothesis 2
H₀₂: Credit creation by Wema Bank PLC does not have a significant impact on economic activities in Ilorin.
H₁₂: Credit creation by Wema Bank PLC has a significant impact on economic activities in Ilorin.
Hypothesis 3
H₀₃: 	The strategies adopted by Wema Bank PLC do not significantly enhance credit creation.
H₁₃: 	The strategies adopted by Wema Bank PLC significantly enhance credit creation.
1.6	Significance of the Study
This study holds significant importance for various stakeholders, including policymakers, financial institutions, and the general public, in understanding the dynamics of credit creation in Nigeria’s banking sector. Firstly, for policymakers and regulators, the findings will provide insights into the challenges faced by commercial banks like Wema Bank PLC in credit creation and offer evidence-based recommendations to strengthen the regulatory framework that supports sustainable credit extension. By identifying the underlying problems, this research can guide the development of policies that promote financial stability, minimize credit risk, and enhance access to credit for productive sectors, particularly SMEs.
Secondly, for commercial banks, the study will serve as a valuable resource in evaluating their current credit creation strategies. Banks can use the findings to refine their risk management practices, improve credit assessment mechanisms, and adopt innovative financial products that better align with the needs of their clients. Moreover, by understanding the impact of credit creation on local economic activities, banks can tailor their lending approaches to foster sustainable development in the communities they serve.
Finally, the study will contribute to the existing body of research on credit creation in Nigeria, filling gaps in knowledge about the specific challenges and prospects faced by banks in different regions. It will provide a deeper understanding of the socio-economic factors influencing credit demand and supply, which can aid future academic research and guide further studies on financial intermediation in developing economies. Overall, this research aims to bridge the gap between credit creation and economic development in Ilorin, with implications that extend to the broader Nigerian economy.
1.7	Scope and Limitation of the Study
This study focuses on the examination of the problem and prospects of credit creation by commercial banks in Nigeria, with a specific focus on Wema Bank PLC, Ilorin. The scope includes an analysis of credit creation practices, challenges, and strategies adopted by the bank within the context of Ilorin’s local economy. 
The study is limited to Wema Bank PLC in Ilorin, which may not fully represent the credit creation practices of other banks operating across different regions in Nigeria. Therefore, generalization of findings beyond Ilorin could be restricted.

1.8	Definition of Terms
Credit Creation: The process by which commercial banks extend loans and advances to borrowers, creating new money in the economy, which helps facilitate economic activities.
Commercial Banks: Financial institutions licensed by the government to accept deposits, offer credit, and provide various banking services to individuals, businesses, and institutions.
Wema Bank PLC: A commercial bank in Nigeria, established in 1945, that provides various banking services including savings, loans, and financial advisory services.
Economic Activities: The various actions that involve the production, distribution, and consumption of goods and services in an economy.
SMEs (Small and Medium Enterprises): Business entities with fewer employees and lower turnover than large companies, often targeted by banks for credit to boost economic growth.
Non-Performing Loans (NPLs): Loans in which the borrower has defaulted on repayment, posing risks to banks' credit creation efforts.
Regulatory Framework: The set of rules and regulations established by financial authorities, such as the Central Bank of Nigeria (CBN), to guide the operations of commercial banks in credit creation and financial stability.
1.9	Plan of the Study
This study is systematically structured into five chapters to ensure a comprehensive exploration of the problem and prospects of credit creation by commercial banks in Nigeria, with specific reference to Wema Bank Plc, Ilorin. The outline of the chapters is as follows:
Chapter One: This chapter provides a general introduction to the study. It outlines the background to the study, the statement of the problem, the objectives of the study, research questions, and hypotheses. Additionally, it highlights the significance of the study, the scope and limitations, as well as definitions of key terms used in the research.
Chapter Two, this chapter reviews relevant literature on the topic of credit creation. It is divided into several subsections, including: Concept of credit creation in commercial banks Theories of credit creation, the process of credit creation in banks, Challenges in credit creation in Nigeria and Prospects of credit creation in Nigeria
Chapter Three: This chapter outlines the research methods employed in the study. It details the research design, population of the study, sampling techniques, sample size, data collection methods, and instruments used for data collection. Additionally, it describes the methods of data analysis and the rationale for selecting these approaches.
Chapter Four: This chapter focuses on the presentation and analysis of data collected during the research. It includes descriptive and inferential statistics, testing of research hypotheses, and an interpretation of findings in relation to the objectives of the study.
Chapter Five which is the final chapter summarizes the key findings of the study, draws conclusions based on the data analysis, and provides recommendations for policymakers, financial institutions, and other stakeholders. Suggestions for further research are also presented.
CHAPTER TWO
LITERATURE REVIEW
2.1	CONCEPTUAL REVIEW
2.1.1 	Concept of Credit Creation in Commercial Banks
Credit creation refers to the process by which commercial banks generate new money through granting loans and advances to borrowers. It plays a crucial role in the economy by facilitating investments, consumption, and overall economic growth. When banks provide loans, they do not merely lend out existing deposits; rather, they create new money as they extend credit, making it an essential tool for financial intermediation (Anyanwu, 2010). The process begins when banks receive deposits from customers, which they are mandated to hold as a reserve. According to the Central Bank of Nigeria (CBN), banks are required to maintain a certain proportion of these deposits as reserves to ensure financial stability (CBN, 2022).
Once reserves are set aside, banks have the ability to lend the remaining funds to borrowers, which injects money into the economy. This creates a cycle where the borrowed money is spent, leading to further economic activities and potentially more demand for loans (Mishkin, 2011). Credit creation is not only influenced by the availability of deposits, but also by factors such as monetary policy, interest rates, and the risk assessment practices of banks (Sanusi, 2012). High interest rates, for instance, may discourage borrowing, while favorable policies can stimulate greater credit extension.
The ability of banks to create credit depends largely on their capital base, regulatory requirements, and the overall economic environment. The CBN’s monetary policy framework, which includes controlling inflation and managing interest rates, directly impacts banks’ capacity to extend credit (CBN, 2022). Additionally, banks assess the creditworthiness of potential borrowers to ensure the repayment of loans, which influences their decision-making in credit creation. However, non-performing loans (NPLs) remain a significant challenge, as they reduce the available funds for new credit and negatively impact the bank's capacity to engage in further lending (Ojo, 2010).
In Nigeria, the regulatory environment surrounding credit creation has been a focal point for ensuring stability in the financial sector. The CBN monitors the banking system closely, establishing guidelines to prevent excessive credit creation that could lead to inflation or financial instability (CBN, 2022). Banks also adopt different strategies to optimize credit creation, such as leveraging digital financial services to enhance access and reduce operational costs (World Bank, 2023).
Ultimately, credit creation serves as a mechanism through which commercial banks support economic activities by enabling investments in productive sectors. However, the process is not without its challenges, including poor credit risk management, inadequate capital, and macroeconomic instability, all of which can hinder effective credit extension (Sanusi, 2012). Thus, understanding the concept of credit creation is crucial for evaluating its impact on economic development and the role banks play in driving growth.
2.2	Historical Background of Credit Creation in Nigeria
Credit systems in Nigeria has undergone significant transformations from the pre-colonial era to the present day. In the early days, informal credit practices were prevalent in communities, characterized by trust-based barter systems1. Communities relied on mutual trust to exchange goods and services with the promise of future repayment.
The advent of colonial rule introduced a more formalized banking system. The first commercial bank, the African Banking Corporation, was established in Lagos in 18922. This period saw the emergence of several other banks, catering primarily to the colonial elite and affluent locals. The banks began offering credit in a more structured form, although access remained limited to a select few1.
Following Nigeria's independence in 1960, the banking sector expanded significantly3. The government sought to increase financial inclusion and support economic growth by establishing indigenous banks and promoting credit availability to a broader population. This era saw the rise of microfinance institutions, which aimed to provide credit to small businesses and individuals1.
The establishment of the Central Bank of Nigeria (CBN) in 1958 marked a significant milestone in Nigeria's financial history. The CBN introduced various monetary policies aimed at regulating credit creation and ensuring financial stability1. The introduction of credit bureaus in the early 2000s further improved credit reporting and assessment mechanisms, although their coverage remains limited1.
The digital revolution in recent years has brought about notable changes in Nigeria's credit landscape. FinTech innovations have made credit more accessible to a larger portion of the population1. Mobile banking and online lending platforms have democratized the credit system, breaking down traditional barriers and reaching previously underserved communities. These technological advancements have bridged some of the gaps in the credit creation process and are expected to continue driving growth in the sector.
Today, commercial banks like Wema Bank PLC play a crucial role in Nigeria's credit system. Established in 1945, Wema Bank has adapted to the evolving financial landscape and continues to contribute to credit creation in the country2. Despite facing challenges such as high non-performing loans and economic instability, the prospects for credit creation in Nigeria remain promising with ongoing regulatory reforms and technological advancements.
2.1.3 	Process of Credit Creation in Banks
Credit creation is a systematic process through which commercial banks contribute to the money supply in an economy by issuing loans and advances to borrowers. This process not only facilitates financial intermediation but also fosters economic growth by enabling investments and consumption. Below is a detailed explanation of the steps involved in the process of credit creation in banks:
i.	Deposit Mobilization: The process begins with the collection of deposits from customers, which are classified into demand deposits (current accounts), savings deposits, and fixed deposits. These deposits form the primary source of funds that banks use to create credit. Customers trust banks with their money, knowing it can be withdrawn on demand or after a specific period, depending on the deposit type (Mishkin, 2011).
ii.	Reserving a Fraction: Banks are required by law to maintain a certain portion of their deposits as reserves, either as cash in their vaults or deposits with the central bank. This is known as the cash reserve ratio (CRR). The purpose of this reserve is to ensure liquidity and stability within the banking system. For example, if the CRR is 10%, the bank must hold 10% of its total deposits as reserves and can use the remaining 90% for lending and other investments (CBN, 2022).
iii.	Lending the Excess Reserves: The remaining funds, after setting aside the reserves, are referred to as excess reserves. Banks use these funds to issue loans and advances to borrowers, including individuals, businesses, and governments. When a bank extends a loan, it does not give out cash; instead, it credits the borrower’s account with the loan amount, effectively creating new deposits (Anyanwu, 2010).
iv.	Deposit Multiplier Effect: The money lent out by banks eventually gets deposited back into the banking system, either in the same bank or another bank. This creates new deposits that can be used to generate further loans, leading to the multiplier effect. The total amount of credit created in the economy depends on the reserve ratio; a lower reserve ratio results in a higher multiplier effect and vice versa (Werner, 2014).
v.	Reinvestment of Borrowed Funds: Borrowers typically use the funds for various purposes, such as purchasing goods and services, investing in assets, or expanding businesses. The money they spend is often deposited into other bank accounts, increasing the deposits available for further credit creation. This reinvestment cycle continues, amplifying the overall money supply in the economy (Sanusi, 2012).
vi.	Role of the Central Bank: The central bank plays a crucial role in regulating the credit creation process through monetary policy tools such as the cash reserve ratio, open market operations, and the discount rate. By adjusting these parameters, the central bank influences the ability of commercial banks to create credit. For instance, increasing the CRR reduces the funds available for lending, thereby curbing credit creation, while lowering the CRR has the opposite effect (CBN, 2022).
vii.	Credit Risk Management: Throughout the credit creation process, banks must evaluate the creditworthiness of borrowers to minimize the risk of defaults. Effective risk management practices ensure that loans are extended to financially reliable customers, safeguarding the bank’s financial stability. Non-performing loans (NPLs) can significantly limit the bank’s capacity to create credit and may lead to broader financial challenges (Ojo, 2010).
2.1.4 	Challenges in Credit Creation in Nigeria
Credit creation in Nigeria faces numerous challenges, which hinder the optimal functioning of commercial banks and limit their contribution to economic growth. These challenges arise from structural, regulatory, economic, and technological factors that affect the ability of banks to extend credit effectively.
i.	High Non-Performing Loans (NPLs): One of the most significant challenges in credit creation in Nigeria is the prevalence of non-performing loans (NPLs). When borrowers fail to repay their loans, banks face financial losses, which reduce their capacity to lend. High levels of NPLs also undermine investor confidence in the banking sector and increase the cost of borrowing for customers. According to the Central Bank of Nigeria (CBN), the ratio of NPLs in the Nigerian banking sector has often exceeded the recommended threshold, signaling a need for improved credit risk management (CBN, 2022).
ii.	Poor Credit Risk Assessment: Many banks in Nigeria face challenges related to inadequate credit risk assessment frameworks. The lack of comprehensive credit information on borrowers, including their credit history and financial standing, leads to suboptimal lending decisions. Although the introduction of credit bureaus in Nigeria has improved credit reporting, their coverage and usage remain limited (Sanusi, 2012).
iii.	Weak Regulatory Environment: Despite regulatory efforts, inconsistencies and gaps in the regulatory framework for credit creation pose challenges. Some banks circumvent regulations, leading to unsustainable lending practices. Additionally, enforcement of banking regulations is sometimes inadequate, allowing credit risk accumulation and other systemic vulnerabilities (Anyanwu, 2010).
iv.	Economic Instability: Nigeria's economy is often characterized by high inflation rates, exchange rate volatility, and fluctuating oil prices, which create uncertainty in financial markets. Economic instability discourages borrowing and lending activities, as both banks and borrowers perceive higher risks during such periods. The devaluation of the naira and the resulting increase in import costs further exacerbate the challenges faced by banks in extending credit (Mishkin, 2011).
v.	Insufficient Capital Base: Many commercial banks in Nigeria struggle with limited capital reserves, which constrain their ability to meet the growing demand for loans. The lack of adequate capital also reduces banks’ resilience to absorb losses from defaults, further limiting their lending capacity. Efforts by the CBN to enforce minimum capital requirements have helped, but many smaller banks still face challenges in maintaining sufficient capital levels (CBN, 2022).
vi.	Inadequate Infrastructure and Technology: The lack of modern infrastructure and technological advancements hampers the efficiency of credit creation in Nigeria. Poor internet connectivity, limited access to digital banking platforms, and inadequate penetration of financial technology in rural areas restrict the ability of banks to provide credit services to underserved populations. Digital transformation in banking is still evolving, with many banks struggling to integrate advanced credit assessment tools into their operations (World Bank, 2023).
vii.	Corruption and Fraud: Corruption and fraudulent practices in the financial sector are additional challenges affecting credit creation in Nigeria. Cases of insider lending, where bank officials grant loans to related parties without proper risk evaluation, are common. This often leads to high default rates and reduced public trust in the banking system. Fraudulent activities, including loan diversion and misrepresentation by borrowers, further exacerbate the problem (Ojo, 2010).
viii.	Low Financial Inclusion: Limited access to financial services remains a significant barrier to credit creation in Nigeria. A large portion of the population, especially in rural areas, remains unbanked or underbanked. This limits the ability of banks to mobilize deposits, which are critical for credit creation. Efforts to improve financial inclusion, such as the introduction of agent banking and mobile money services, are still in their nascent stages (CBN, 2022).
ix.	High Cost of Borrowing: High interest rates in Nigeria discourage borrowers from accessing credit, especially for long-term investments. The high cost of borrowing is influenced by factors such as inflation, the monetary policy rate, and inefficiencies in the banking sector. This reduces demand for loans and hinders the ability of banks to create credit on a large scale (Sanusi, 2012).
2.1.5	Prospects of Credit Creation in Nigeria
The future of credit creation in Nigeria holds promising prospects, driven by advancements in technology, regulatory reforms, and efforts to enhance financial inclusion. One significant prospect lies in the integration of financial technology (FinTech) innovations. FinTech solutions can revolutionize credit assessment and delivery processes, enabling banks to reach previously underserved populations. Mobile banking, digital lending platforms, and blockchain technology can streamline credit application and approval processes, making credit more accessible and reducing operational costs (Uzoma, 2020).
Another promising aspect is the ongoing regulatory reforms aimed at stabilizing and strengthening the Nigerian banking sector. The Central Bank of Nigeria (CBN) has been proactive in implementing policies to enhance financial stability, improve risk management practices, and ensure sufficient capital adequacy in banks. Initiatives such as the Basel III regulations and the establishment of credit bureaus are expected to improve the banking sector's capacity to create and manage credit effectively. These reforms provide a conducive environment for sustainable credit growth and economic development (CBN, 2022).
Enhancing financial inclusion holds immense potential for expanding credit creation in Nigeria. Efforts to bring more individuals and businesses into the formal financial system can significantly increase the pool of depositors and borrowers. Programs such as agent banking, mobile money services, and microfinance initiatives aim to extend financial services to rural and remote areas, thereby increasing the availability of credit. By tapping into these previously underbanked segments, commercial banks can boost their deposit base and expand their lending capabilities (World Bank, 2023).
Improvements in economic stability and growth prospects also bode well for credit creation. As Nigeria's economy diversifies and becomes less dependent on oil, the overall stability and resilience of the financial sector are likely to improve. A stable macroeconomic environment reduces uncertainties, lowers default risks, and encourages both borrowing and lending activities. With increasing investment in infrastructure, agriculture, and manufacturing, banks will have more opportunities to extend credit to productive sectors, fostering sustainable economic growth.
Additionally, international partnerships and foreign direct investments (FDIs) can support credit creation in Nigeria. Collaborations with international financial institutions and donor agencies can enhance the capacity of local banks through technical assistance, funding, and best practices in credit risk management. FDIs can inject much-needed capital into the banking sector, enabling banks to expand their credit portfolios and support large-scale projects. These partnerships can also introduce new financial products and services, further stimulating credit growth.
2.2	THEORETICAL FRAMEWORK
The theoretical framework for understanding credit creation by commercial banks in Nigeria can be built upon several key economic and financial theories. These theories provide a foundation for examining how banks create credit, the factors influencing this process, and the implications for the economy. 
2.2.1	The Monetary Theory of Bank Credit: 
This theory posits that banks play a critical role in the creation of money through the extension of credit (Friedman & Schwartz, 1963). When banks issue loans, they create new deposits, effectively increasing the money supply. This process is fundamental to understanding how commercial banks, like Wema Bank PLC, contribute to the overall liquidity in the economy.
2.2.2	The Loanable Funds Theory: 
According to this theory, the supply and demand for loanable funds determine the interest rates in the financial markets (Ohlin, 1937). Savers provide the supply of funds, while borrowers create the demand. Commercial banks act as intermediaries, funneling funds from savers to borrowers. The ability of banks to create credit is influenced by the availability of loanable funds and the prevailing interest rates.
2.2.3	Keynesian Theory of Money and Credit: 
John Maynard Keynes emphasized the relationship between money supply, interest rates, and economic activity (Keynes, 1936). He argued that changes in the money supply (including bank credit) can impact overall economic output and employment levels. The Keynesian perspective helps explain the macroeconomic implications of credit creation by commercial banks in Nigeria.
2.2.4	The Credit Rationing Theory: 
This theory suggests that banks often limit the amount of credit they extend to borrowers due to asymmetric information and the risk of adverse selection (Stiglitz & Weiss, 1981). Credit rationing occurs when banks refuse to extend loans to certain borrowers, even if they are willing to pay higher interest rates. This framework is relevant to understanding the challenges faced by Wema Bank in managing credit risk.
2.2.5	Financial Intermediation Theory: 
This theory highlights the role of banks as intermediaries between savers and borrowers (Diamond & Dybvig, 1983). Banks reduce transaction costs and provide liquidity, making it easier for individuals and businesses to access credit. The efficiency of financial intermediation affects the ability of banks to create credit and support economic growth.

2.3	EMPIRICAL REVIEW
According to Sebastian (2009), building the potential of a country should not be necessarily based on capital import, but the central bank alternatively should allow credit expansion such that this finances new investment and create the savings necessary to balance the national account. This is only sufficient provided that there is a stable exchange rate and domestic price. Otalu, Aladesanmi and Olufayo, (2014), “Monetary policy and commercial bank performance in Nigeria: an assessment of credit creation role”. This work addresses the effectiveness of monetary policy in the commercial bank using their major role which is credit creation. This is affected by the cash reserve and money supply. It is recommended that a vibrant monetary policy that will be effective in controlling the credit creation power of the commercial banks in Nigeria requires the inclusion of these identified variables.
Lino (2003), finds that the banking sector plays a major role in financial intermediation, however, they attribute financial instability to imperfect and asymmetry information. Therefore Sau recommends that, it is necessary to re-elaborate a new approach that includes the role of information Eric, (2011), “Financing a planned economy: institution and credit allocation in the French golden age of growth (1954-1974)”. This work stresses on the need for creating credit for investment during periods after the world war that is the post-world war period. It expresses the idea that credit creation in this period is to be devoted to investment in order to rebuild the economy.
Chaudhary and Ghulam, (2004), “The impact of domestic credit, deficit and changing exchange rate regimes on foreign reserves of Pakistan”. The most striking finding of the study is that acceleration in the growth rate of domestic credit, due to deficit financing, leads to approximately equal worsening in the balance of payments. Foreign reserve is greatly affected by credit creation. In order to achieve internal and external balance, monetary policy could play important role. Adenugba, Adesoji, (2015), “Banking system credit as an instrument for economic growth in Nigeria (1983-2012)”. This study examines reasons for low banking habits in Nigeria. The more savings or deposit from individuals, the more an economy is guaranteed of credit creation. So therefore, there is the need for developing our financial intermediaries towards greater effectiveness and efficiency because a sound financial system instils confidence among savers such that resources are effectively mobilized to increase productivity in the economy.
Marina, (2010), identifies different measures that have been taken during the recent Global Financial Crisis that started to unfold in 2007 and during past historical crises. The role of credit creation in the development of bubbles is elaborated. Credit creation first leads to a bubble evident in the increase of asset prices which results in a burst that crashes these asset prices and brings the economy to disarray. The recommendation is that if credit creation is in fact the fundamental cause that leads to bubbles, there might be ways to effectively deal with crises or perhaps even prevent future crises.
Okafor, Ezeaku, and, Ugwuegbe, (2015), reveals that financial development is important and that bank credit is important. This finding is in tandem with the supply-leading hypothesis, and the policy implication is that the Central Bank of Nigeria (CBN) and the Federal Ministry of Finance should ensure that the financial system is not only healthy but efficient. It is recommended that credit should be channelled, at concessionary costs, to the private sector of the Nigerian economy since their activities is proven to stimulate economic growth. Misina and Tkacz, (2009), “Credit, Asset Prices, and Financial Stress. There is a relationship between asset price movements, credit cycles, and developments in the real economy”. The key finding is that some combination of asset prices and credit gap can help predict crises. A specific indicator worthy of being highlighted is business credit which emerges as the prominent leading indicator in both linear and nonlinear models at the one- and two year horizons. A combination of this variable with a threshold in a housing-sector, asset price leads to significant improvements in performance over the same horizon.
Chiarella, Flaschel, Hartmann, and Proaño, (2011), show that when commercial banks are allowed to trade in financial assets (here equities) as a substitute for traditional lending, the macroeconomic system is likely to be an unstable one. The study recommends a narrow banking system defined by a 100 percent reserve ratio for checkable deposits and the ban for commercial banks from trading in stocks and other financial assets. Sassi. (2014), “Effect of Enterprise credit and household credit on economic growth: New evidence from European Union countries”. Enterprise credit boost economic growth, it is found that enterprise credit has a positive relationship with economic growth while household credit has a negative impact on economic growth, Sassi recommends a credit constraint or control on credit to household given that there is a negative relationship between household and economic growth.
2.4	GAPS IN LITERATURE
Despite extensive research on credit creation in commercial banks, significant gaps remain in understanding its dynamics within the Nigerian context. Most studies focus on the general mechanisms and theoretical frameworks of credit creation without adequately addressing the unique economic, regulatory, and cultural factors influencing the process in Nigeria. For instance, while global studies emphasize the importance of advanced credit risk assessment tools, limited attention has been paid to how Nigerian banks can overcome challenges such as limited access to credit information and weak enforcement of loan repayment. Furthermore, existing literature often overlooks the role of financial inclusion and technological innovations, such as fintech, in enhancing credit creation in Nigeria's underserved rural areas.
Another critical gap is the lack of empirical research focusing on specific banks and their unique contributions to credit creation. Although some studies examine aggregate credit trends in the Nigerian banking sector, few analyze the processes, challenges, and outcomes within individual institutions like Wema Bank Plc. This omission limits the understanding of how different banks adapt their credit creation strategies to changing regulatory and economic environments. Addressing these gaps by conducting institution-specific and context-driven research will provide deeper insights into the prospects and challenges of credit creation in Nigeria.

CHAPTER THREE
RESEARCH METHODOLOGY
3.1 	Introduction to Methodology
This chapter outlines the methodology employed in conducting the research. It describes the research design, population, sampling techniques, method of data collection, method of data analysis, and limitations associated with the methodology. The primary objective is to explain how the research was systematically carried out to address the objectives and hypotheses of the study.
3.2 	Research Design
The research adopted a descriptive survey design. This design was chosen because it allows the researcher to gather data from respondents in a structured manner using questionnaires. It is suitable for studies aiming to describe the characteristics, attitudes, and behaviors of a particular group in this case, staff and customers of Wema Bank Plc, Ilorin regarding credit creation.
3.3 	Population of the Study
The target population for this study comprises 100 individuals, including both staff and customers of Wema Bank Plc, Ilorin branch. These individuals are directly or indirectly involved in or affected by the credit creation process of the bank.
3.4 Sample Size and Sampling Technique
To determine the sample size for this study, Yaro Yamane's formula was used:

		n =	
Where:	
	n =	Sample size
	N =	Population size
	e =	Level of error
	I =	Mathematical constraint
The level of error of 0.05 was chosen by the researcher
Therefore;
		n =	
		n =	
		n = 80
Hence, a sample size of 80 respondents was selected. A simple random sampling technique was employed to ensure that every member of the population had an equal chance of being selected, which enhances the representativeness of the sample.
3.5 Methods of Data Collection
The data for this study was collected using a structured questionnaire. The questionnaire consisted of two sections: Section A focused on demographic information, while Section B consisted of closed-ended questions related to the study objectives. The questionnaires were administered physically to the selected respondents and retrieved upon completion.
3.6 Method of Data Analysis
The data collected were analyzed using descriptive statistics, specifically frequency tables and percentages. This method was chosen due to its simplicity and effectiveness in summarizing and presenting data in a clear and interpretable format.
3.7 Limitations to Methodology
Several limitations were encountered in the course of this study. First, some respondents were reluctant to provide accurate responses due to confidentiality concerns. Second, time constraints limited the ability to expand the study to include more branches of Wema Bank. Additionally, the reliance on self-reported data through questionnaires may have introduced response bias.

CHAPTER FOUR
DATA PRESENTATION, ANALYSIS, AND INTERPRETATION
4.0 Introduction
This chapter presents, analyzes, and interprets the data collected through the questionnaire distributed to 80 respondents. The responses are organized in tables using frequencies and percentages. Each table is followed by a brief interpretation to provide insight into the findings.
4.1 Data Presentation
Section A: Demographic Data
Table 4.1: Gender Distribution of Respondents
Gender	Frequency	Percentage (%)	
Male	42	52.5	
Female	38	47.5	
Total	80	100	
Source: Field work Analysis, 2025
The data shows a relatively balanced gender distribution, with a slightly higher proportion of male respondents (52.5%).
Table 4.2: Age Distribution of Respondents
Age Range	Frequency	Percentage (%)	
18–25	20	25.0	
26–35	28	35.0	
36–45	18	22.5	
46+	14	17.5	
Total	80	100	
Source: Field work Analysis, 2025
The highest number of respondents falls within the age group of 26–35 years (35%), indicating that a significant portion of the respondents are active working adults.
Table 4.3: Educational Qualification
Qualification	Frequency	Percentage (%)	
SSCE	12	15.0	
OND/NCE	16	20.0	
HND/BSc	34	42.5	
MSc/PhD	18	22.5	
Total	80	100	
Source: Field work Analysis, 2025
Most respondents are well-educated, with 42.5% holding HND or BSc degrees.
Table 4.4: Occupation of Respondents
Occupation	Frequency	Percentage (%)	
Banker	20	25.0	
Business Owner	18	22.5	
Civil Servant	22	27.5	
Student	14	17.5	
Others	6	7.5	
Total	80	100	
Source: Field work Analysis, 2025
The majority of respondents are civil servants (27.5%) and bankers (25%), which is ideal for the study’s context.

Table 4.5: Relationship with Wema Bank
Status	Frequency	Percentage (%)	
Staff	32	40.0	
Customer	48	60.0	
Total	80	100	
Source: Field work Analysis, 2025
A larger proportion of the respondents (60%) are customers of Wema Bank, which helps to balance internal and external perspectives.
Table 4.6: Number of Years with Wema Bank
Years	Frequency	Percentage (%)	
< 1 year	10	12.5	
1–3 years	24	30.0	
4–6 years	26	32.5	
7+ years	20	25.0	
Total	80	100	
Source: Field work Analysis, 2025
A majority of respondents have been associated with Wema Bank for more than three years, indicating reliable feedback based on experience.
Section B
Table 4.7: Wema Bank creates sufficient credit to support economic activities.
Response	Frequency	Percentage (%)	
Strongly Agree	24	30.0	
Agree	28	35.0	
Neutral	12	15.0	
Disagree	10	12.5	
Strongly Disagree	6	7.5	
Total	80	100	
Source: Field work Analysis, 2025
A combined 65% of respondents agree that Wema Bank supports economic activities through credit creation. This shows general confidence in the bank’s credit role.
Table 4.8: The credit policies of Wema Bank are clearly communicated to customers.
Response	Frequency	Percentage (%)	
Strongly Agree	20	25.0	
Agree	30	37.5	
Neutral	14	17.5	
Disagree	10	12.5	
Strongly Disagree	6	7.5	
Total	80	100	
Source: Field work Analysis, 2025
A majority (62.5%) agree that credit policies are well communicated, indicating effective customer education by Wema Bank.
Table 4.9: The loan application process at Wema Bank is simple and accessible.
Response	Frequency	Percentage (%)	
Strongly Agree	18	22.5	
Agree	32	40.0	
Neutral	10	12.5	
Disagree	12	15.0	
Strongly Disagree	8	10.0	
Total	80	100	
Source: Field work Analysis, 2025
A combined 62.5% find the loan application process simple, suggesting a user-friendly system.
Table 4.10: Credit creation by Wema Bank contributes to the growth of small businesses.
Response	Frequency	Percentage (%)	
Strongly Agree	26	32.5	
Agree	30	37.5	
Neutral	8	10.0	
Disagree	10	12.5	
Strongly Disagree	6	7.5	
Total	80	100	
Source: Field work Analysis, 2025
70% of respondents believe that Wema Bank’s credit facilities help small business growth, confirming its economic impact.
Table 4.11: There are challenges that hinder the effectiveness of credit creation.
Response	Frequency	Percentage (%)	
Strongly Agree	28	35.0	
Agree	30	37.5	
Neutral	10	12.5	
Disagree	8	10.0	
Strongly Disagree	4	5.0	
Total	80	100	
Source: Field work Analysis, 2025
A significant 72.5% agree that credit creation faces obstacles, suggesting areas where improvement is needed.
Table 4.12: High interest rates affect the accessibility of credit at Wema Bank.
Response	Frequency	Percentage (%)	
Strongly Agree	30	37.5	
Agree	26	32.5	
Neutral	8	10.0	
Disagree	10	12.5	
Strongly Disagree	6	7.5	
Total	80	100	
Source: Field work Analysis, 2025
70% of respondents agree that high interest rates limit credit accessibility, highlighting a key issue in credit creation.
Table 4.13: Collateral requirements by Wema Bank are too strict.
Response	Frequency	Percentage (%)	
Strongly Agree	24	30.0	
Agree	28	35.0	
Neutral	10	12.5	
Disagree	12	15.0	
Strongly Disagree	6	7.5	
Total	80	100	
Source: Field work Analysis, 2025
65% believe collateral conditions are stringent, which could limit the bank’s ability to extend credit to SMEs or individuals.
Table 4.14: Wema Bank uses customer information to assess creditworthiness.
Response	Frequency	Percentage (%)	
Strongly Agree	22	27.5	
Agree	34	42.5	
Neutral	12	15.0	
Disagree	8	10.0	
Strongly Disagree	4	5.0	
Total	80	100	
Source: Field work Analysis, 2025
70% of respondents agree that customer data is used in credit evaluations, showing structured decision-making.
Table 4.15: The repayment structure of loans at Wema Bank is convenient.
Response	Frequency	Percentage (%)	
Strongly Agree	20	25.0	
Agree	32	40.0	
Neutral	10	12.5	
Disagree	12	15.0	
Strongly Disagree	6	7.5	
Total	80	100	
Source: Field work Analysis, 2025
65% feel the repayment terms are convenient, which could help in reducing loan default rates.

Table 4.16: Delays in loan approval affect business planning.
Response	Frequency	Percentage (%)	
Strongly Agree	26	32.5	
Agree	30	37.5	
Neutral	10	12.5	
Disagree	8	10.0	
Strongly Disagree	6	7.5	
Total	80	100	
Source: Field work Analysis, 2025
70% believe that loan approval delays negatively impact business operations, indicating a need for faster processing.
Table 4.17: Wema Bank provides financial advice to loan applicants.
Response	Frequency	Percentage (%)	
Strongly Agree	18	22.5	
Agree	34	42.5	
Neutral	14	17.5	
Disagree	8	10.0	
Strongly Disagree	6	7.5	
Total	80	100	
Source: Field work Analysis, 2025
65% agree that Wema Bank offers financial guidance, which could enhance loan performance and credit usage.

Table 4.18: Loan defaults affect the bank’s ability to give more credit.
Response	Frequency	Percentage (%)	
Strongly Agree	30	37.5	
Agree	28	35.0	
Neutral	8	10.0	
Disagree	10	12.5	
Strongly Disagree	4	5.0	
Total	80	100	
Source: Field work Analysis, 2025
A majority of respondents (72.5%) recognize that defaults hinder credit availability, underscoring the importance of recovery strategies.
Table 4.19: Wema Bank has room to expand its credit creation.
Response	Frequency	Percentage (%)	
Strongly Agree	24	30.0	
Agree	30	37.5	
Neutral	14	17.5	
Disagree	8	10.0	
Strongly Disagree	4	5.0	
Total	80	100	
Source: Field work Analysis, 2025
67.5% believe the bank can do more in terms of credit provision, signaling growth opportunities.

Table 4.20: Government policies affect credit creation by commercial banks.
Response	Frequency	Percentage (%)	
Strongly Agree	26	32.5	
Agree	28	35.0	
Neutral	10	12.5	
Disagree	10	12.5	
Strongly Disagree	6	7.5	
Total	80	100	
67.5% of respondents agree that government policy has a significant impact on banks’ ability to create credit, showing regulatory influence.
4.2 	Data Analysis
The analysis of the data collected from the respondents was carried out using descriptive statistics such as frequency distribution tables and percentage analysis. This method was chosen to provide a clearer and more understandable presentation of the responses from the eighty (80) distributed questionnaires. The use of the Likert scale in Section B of the questionnaire allowed for measuring the intensity of respondents’ opinions on various aspects of credit creation in Wema Bank PLC, Ilorin. Each item was analyzed to determine the level of agreement or disagreement from the respondents and to identify patterns or trends in their views on the subject matter.
The data analysis reveals significant insights into how customers perceive the practices of credit creation by the bank. For instance, a high percentage of respondents agreed that commercial banks play a vital role in economic development through credit creation, but also noted that factors like high interest rates and strict collateral requirements hinder access to loans. These responses show that while the potential for credit creation exists, various challenges still affect the full realization of this potential. This analytical approach was instrumental in answering the research questions and testing the formulated hypotheses.
4.3 	Data Interpretation
The interpretation of the data obtained indicates that a majority of the respondents believe that Wema Bank PLC engages in effective credit creation and that the credit services offered by the bank contribute positively to the economy. However, responses also suggest that several constraints such as high interest rates, rigorous collateral demands, and delays in loan approvals have limited the ability of many customers to access credit facilities. These constraints reduce the overall effectiveness of credit creation and pose a challenge for the bank in fulfilling its lending potential. Respondents also confirmed that loan defaults impact future credit distribution, indicating a feedback loop that could hamper long-term financial growth if not addressed.
Furthermore, the interpretation highlights that Wema Bank has opportunities to expand its credit services, as many respondents indicated that the bank could still do more in terms of outreach and support for smaller businesses and individuals. It also became evident that government policies play a crucial role in shaping the effectiveness of credit creation by banks. Policies that promote lower interest rates, financial inclusion, and business-friendly regulations could improve the bank’s ability to grant loans. Thus, interpreting the data has provided meaningful insights into both the problems and prospects of credit creation, supporting the study’s objectives.

CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 	Summary 
This study critically examined the problems and prospects of credit creation by commercial banks in Nigeria, using Wema Bank PLC, Ilorin, as a case study. The research was motivated by the essential role that credit plays in the economy, especially in promoting investment, enhancing production, and driving financial inclusion. The study provided a comprehensive background on credit creation, its theoretical foundations, the processes involved, and the challenges that hinder effective credit disbursement in Nigeria’s banking sector. Key literature was reviewed to establish a sound academic foundation for the study.
Primary data were collected through a structured questionnaire distributed to 80 respondents, including customers and staff of Wema Bank PLC. Section A of the questionnaire captured demographic data, while Section B assessed respondents’ views on credit creation processes, challenges, and future opportunities using a five-point Likert scale. The data collected were analyzed using frequency tables and percentage analysis. The findings revealed that while Wema Bank engages actively in credit creation, issues such as high interest rates, stringent collateral requirements, and delays in loan processing serve as significant hindrances. However, respondents also identified room for growth and improvement in the bank’s credit operations.
The study established that despite the evident challenges, commercial banks like Wema Bank PLC still have strong prospects for enhancing credit creation, particularly through policy support, digital financial innovations, and improved customer relationship management. The bank's role in financial intermediation remains significant, and optimizing its credit policies can lead to a more robust contribution to economic development. Overall, the study succeeded in achieving its objectives and provided a framework for understanding how commercial banks can better manage credit to maximize impact.
5.2 	Conclusion
Based on the findings of this study, it is concluded that credit creation remains a fundamental responsibility of commercial banks in Nigeria. Wema Bank PLC has played an active role in lending, yet its credit creation efforts are sometimes hampered by systemic challenges such as high interest rates, default risks, and cumbersome loan procedures. Despite these constraints, the bank still holds considerable potential for improving access to credit, particularly by tailoring loan products to meet the needs of individuals and small businesses. A well-managed credit creation process not only benefits the bank but also promotes broader economic growth.
5.3 	Recommendations
i.	Wema Bank should consider revising its lending conditions, especially for small and medium enterprises, by reducing interest rates and adopting more flexible collateral requirements.
ii.	The bank should strengthen its loan monitoring and recovery systems to minimize default rates and improve loan performance.
iii.	The government and regulatory agencies should create more supportive financial policies. Additionally, banks should leverage digital tools for faster loan processing and credit evaluation.
iv.	Wema Bank should invest in educating its customers about loan management and financial planning to reduce the risk of default and improve credit utilization.
v.	Wema Bank should develop new loan products that target underbanked populations, entrepreneurs, and startups to further enhance economic participation.

REFERENCES
Abata, M. A., Kehinde, J. S., & Bolarinwa, S. A. (2012). Financial intermediation and economic growth in Nigeria. British Journal of Arts and Social Sciences, 4(2), 164–179.
Adeniran, J., & Yusuf, S. (2014). Macroeconomic instability and credit creation in Nigeria: An empirical analysis. Journal of Economics and Finance, 5(2), 34-50. 
Afolabi, J. A. (2010). Analysis of the efficiency of microfinance banks in financing small-scale enterprises in Nigeria. International Journal of Economic Development Research and Investment, 1(1), 42–48.
Anyanwu, J. C. (2010). Regulatory challenges in the Nigerian banking sector. African Development Review, 22(3), 145-167. 
Central Bank of Nigeria (CBN). (2019). Banking regulations and monetary policies in Nigeria. CBN Publication. Retrieved from https://www.cbn.gov.ng
Central Bank of Nigeria (CBN). (2022). Annual report and financial statements. Retrieved from https://www.cbn.gov.ng
Central Bank of Nigeria (CBN). (2022). Financial stability report. CBN Publication. Retrieved from https://www.cbn.gov.ng
Diamond, D. W., & Dybvig, P. H. (1983). Bank runs, deposit insurance, and liquidity. Journal of Political Economy, 91(3), 401-419. https://doi.org/10.1086/261180
Eze, O. R., & Okoye, V. (2013). Analysis of the impact of deposit money banks’ lending rate on the performance of the Nigerian economy (1999–2012). International Journal of Business and Management Review, 1(1), 34–43.
Ezirim, C. B., & Eneye, E. (2014). Risk management and credit creation in Nigeria’s banking sector. Nigerian Journal of Banking and Finance, 10(4), 78-99. 
Friedman, M., & Schwartz, A. J. (1963). A monetary history of the United States, 1867-1960. Princeton University Press.
Greenwood, J., & Jovanovic, B. (1990). Financial development, growth, and the distribution of income. Journal of Political Economy, 98(5), 1076-1107. 
Keynes, J. M. (1936). The general theory of employment, interest, and money. Macmillan.
Mishkin, F. S. (2011). The economics of money, banking, and financial markets (9th ed.). Pearson.
Moore, B. J. (1988). Horizontalists and verticalists: The macroeconomics of credit money. Cambridge University Press.
Nwankwo, G. O. (2011). The Nigerian financial system (3rd ed.). Longman Nigeria Plc.
Obamuyi, T. M. (2009). Credit delivery and sustainability of microcredit schemes in Nigeria. Journal of Enterprising Communities: People and Places in the Global Economy, 3(1), 71–83. https://doi.org/10.1108/17506200910943693
Ohlin, B. (1937). The theory of interest rates and loanable funds. Economic Studies, 25(4), 199-225. 
Ojo, O. (2010). Corruption in Nigerian banking: A policy analysis approach. Journal of African Finance, 12(2), 99-115. 
Okorie, A., & Agu, C. C. (2015). Risk assessment and credit creation in Nigerian banks. International Journal of Banking and Finance, 8(1), 50-72. 
Okoye, L. U., & Ezejiofor, R. A. (2013). The effect of bank lending rate on the performance of Nigerian deposit money banks. International Journal of Business and Management Invention, 2(6), 11–18.
Onoh, J. K. (2007). Dimensions of Nigeria’s monetary and fiscal policies: Domestic and external. Astra Meridian Publishers.
Sanusi, L. S. (2012). Banking reforms and the role of credit in Nigeria's economic development. Central Bank of Nigeria Speech. Retrieved from 
Stiglitz, J. E., & Weiss, A. (1981). Credit rationing in markets with imperfect information. American Economic Review, 71(3), 393-410. 
Uche, C. U., & Ehikwe, A. E. (2018). Commercial banking and credit creation in Nigeria: Issues and challenges. African Research Review, 12(3), 155–168.
Uzoma, P. C. (2020). FinTech innovation and credit expansion in Nigeria. Journal of Financial Technology, 6(2), 23-41. 
Werner, R. A. (2014). Can banks individually create money out of nothing? The theories and the empirical evidence. International Review of Financial Analysis, 36, 1-19. https://doi.org/10.1016/j.irfa.2014.06.004
World Bank. (2023). the role of financial inclusion in developing economies. Retrieved from https://www.worldbank.org