The recapitalization of the banking sector in Nigeria since 2005 has brought about a total change in commercial bank lending behavior and credit management in Nigeria. With the growth in entrepreneurial activities in Nigeria, the demand for bank loans is at the increase. Small and medium scale business owners are constantly looking for business credit to expand their operations and sustain their businesses. This gap between business owners demanding for bank loans and the in-ability of commercial banks to totally remedy the situation is disturbing and needs proper attention from the government. Employees of union bank Nigeria plc, Uyo Branch were used for the study.

Findings from the study are limited to Union bank plc, Uyo. Concerning methodology, data was gotten from both primary and secondary sources. Questionnaires issued to respondents constitute the primary source of data, while the internet, journals and text books made up the secondary source of data. Findings from the study revealed that credit management in Nigerian banks are not very efficient as some internal control measures to check frauds are missing. The study also revealed that credit management is a very important aspect in banking, as any fraudulent activity in the lending process can collapse businesses and banks as well. Bank officials must be transparent and honest in their dealings with customers who apply for loan facilities, as this will prompt clients to pay up any loan collected.

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