1.0 Introduction Credit risk refers to the loss because of the debtor's non-payment of loans or other forms of credit. Credit risks are faced by lenders to consumers, lenders to business, businesses and even individuals. Credit risks, nevertheless, are most encountered in the financial sector particularly by the institutions such as banks. Credit risk management therefore is both a solution and a necessity in the banking setting. The global financial crisis also requires the banks to regain enough confidence by the public not only for the financial institutions but also the financial system in general and to not just rely on the financial aid by the governments and central banks. It is critical for the banks to engage in better credit risk management practices. Nigerian banks are not an exemption. The Basel Committee on Banking Supervision asserts that loans are the largest and most obvious source of credit risk while others are found on the various activities that the bank involv...