Musa, AbdulkarimAmana, A. Samuel2023-12-102023-12-102017-10-16Aderibigbe. J. 0. (2001). The Role of the Federal Sect& in Poverty Reduction.” CBN Bullion, 39(4): 13-24 Akinboyo, 0. L. (2007, Jan/March). Microfinance Banks: Unlocking The Potentials of Micro Business Activities of The Nigerian Rural Economy. The Bullion, 31(1). Akinrisimi, A. (1986). Interview with Business Times, Lagos, Sept. 22. Akpansung. A. O. &Babalola, S. J. (2011. Dec). Banking Sector Credit and Economic Growth i n Nigeria: An Empirical Investigation. CBN Journal of Applied Statistics.2(2). Aliero, H. M., Abdullahi, Y. Z., &Adamu, N. (2013, Jan). Private Sector Credit and Economic Growth Nexus in Nigeria: An Autoregressive Distributed Lag Bound Approach. Mediterranean Journal of Social Sciences, 4(1.1). http://dx.doi.org/] 0.590 ]Jmjss.2013.v4n lp83 Aryeetev, E (1995). Informal Finance in Africa, AERC/East African Educational Publishers. Nairobi. Besley.T. (1996). “Political Economy of Alleviating poverty : Theory and Institutions”, in Bruno, NI and Pleskovic, B (ed) Annual World Bank Conference. Central Bank of Nigeria (2001), Annual Report and State of Accounts for the year ended 31M December. 2001: CBN, Abuja. Central Bank of Nigeria (2005), Annual Report and Statement of Accounts for the year ended December. 2005: CBN, Abuja. Central bank of Nigeria (2008) “Guidelines and Procedures for the establishment of Microfinance banks in Nigeria' Published by the CBN Chirwn, E. A. (1997). 'An econometric analysis of the Determinants of Agricultural Credit Payment in Malawi,” African Review of Money Finance and Banking. Vol. 1-2:107-122. Cohen M. &Sebstad J. (2000). Microfinance, Risk Management and Poverty: Synthesis Study Based on Field Studies Conducted by Ronald T. Chua, Paul Mnslev. Graham A. N. Wright. Hassan Zaman. Cohen M.& Snodgrass D.( 1999). An Assessment ofthe4mpactfSEWA Bank in India: Baseline Findings. Harvard Institute for International development.http://www.miD.ore.https://keffi.nsuk.edu.ng/handle/20.500.14448/916This study investigates effect of non-performing loans on profitability of Nigerian deposit money bank. The challenges posed by incidences of non-performing loans on profitability of deposit money banks is alarming, posing great risks to the capital adequacy and deposit liabilities of these banks. Data were collected from financial reports of these banks and analyzed by the use of multiple regression. Findings show positive relationship between capital adequacy ratio, deposit portfolio and non-performing loans of deposit money banks. It is therefore recommended that capital adequacy ratio of microfinance banks be increased in order to make them able to absolve shocks of non-performing loans and other associated credit default risks among others.enDeposit money banks, non-performing loans, capital adequacy, deposit portfolioEFFECT OF NON-PERFORMING LOANS ON PROFITABILITY OF NIGERIAN DEPOSIT MONEY BANKSArticle