iarjbmIARJBMIARJBM2708-514710.47310/iarjbm.2020.v01i02.016Effects of Macroeconomic Indices on Non-Performing Loans in Nigeria BanksAdepojuAdeobaAsaoluOluchiJacintaAdibeThis study examines the effects of macroeconomic indices on non-performing loans in Commercial banks in Nigeria using time series data during 1992-2019. Analysis was done using OLS, Johansen Co-integration Test and Vector Error Correction Model. Non-performing loan is the dependent variable while inflation, real exchange rate, lending rate and real gross domestic product (RGDP) growth are the explanatory variables. Our long run analyses show that lending rate and inflation have positive relationship with the dependent variable (NPL) while the RGDP shows significant negative relationship with NPL. Meanwhile, all other variables have non-significant positive relationship with non-performing loans in Commercial Banks in Nigeria at the short run. The study recommends that the monetary authorities should be more flexible and deliberate in setting business friendly Monetary Policy Rate (MPR) which invariably regulates the lending rate, this is because lending rate is a core part of bank’s cost profile and efficiency is critical to their performances. Stabilizing lending rate is achievable when investors buoy up savings (cheap funds) to dilute cost of fund and borrowing for investment purposes.