The study evaluated credit management in a manufacturing company with particular reference to Dangote Cement Company Plc, Obajana. The study examined the challenges faced by management in formulating and implementing effective credit management policies in a manufacturing company. Questionnaires were designed and administered to the respondents. Data was presented and analyzed with the use of tables, frequencies and simple percentage while chi-square test was employed in the test of hypotheses. The research work revealed that there was an improvement in the customer’s credit policy that facilitate the development of well-being of the organsaition was achieved through special tools such as giving trade-offs and the credit creation of a smooth customer company relationship. It was therefore recommended that the company should endeavour give enough time for the repayment of credit so as to make the customers pay up with relative cases. The researcher arrived at concussion that the company is being affected negatively in terms of development through the application of credit in its business transaction.  It was also recommended that the management of Dangote Cement Company Plc Obajana should make sure that they pursue large debt in the law court much more frequently so as to mind the high rate of incidence of bad debt.
TABLE OF CONTENTS
CHAPTER ONE.
INTRODUCTION..
1.1 Background to the Study.
1.2 Statement of the Problem..
1.3 Objective of the Study.
1.4 Research Questions
1.5 Significance of the Study.
1.6 Scope and Limitations of the Study.
1.7 Operational Definition of Terms
REVIEW OF RELATED LITERATURE.
2.1 Introduction.
2.2 An Overview of Dantgote Cement Company Plc, Obajana.
2.3 Definition of Credit Management
2.4 Types of Credit
2.5 An Overview of Credit Management in Manufacturing Industry.
2.6 Tools Used in Credit Management Policy.
2.7 Banking Analysis and Negotiating the Loan Application from A Manufacturing Industry.
RESEARCH METHODOLOGY.
3.1 Introduction.
3.2 Research Design.
3.3 Area of Study.
3.4 Sources And Methods of Data Collection.
3.5 Population of the Study.
3.6 Sample and Sampling Techniques
3.7 Methods of Data Analysis
CHAPTER FOUR.
PRESENTATION AND INTERPRETATION OF RESULTS.
4.1 Introduction.
4.2 Data Presentation and Analysis
CHAPTER FIVE.
SUMMARY, CONCLUSION AND RECOMMENDATIONS.
5.1 Summary of Findings
5.2 Summary of the Study.
5.3 Conclusion.
5.4 Suggestions for Further Research.
5.5 Recommendations
Bibliography.
Appendix.
 LIST OF TABLES
Table 4.2.1: Sex distribution.
Table 4.2.2: Age of respondents
Table 4.2.3: Marital status of respondents.
Table 4.2.4: Credit Policy of Dangote Cement Company Plc. Obajana Effects on its Development
Table 4.2.5: Does credit constitute a vital aspect of the company’s economic activities
Table 4.2.6: Does the company follow-up its credit policy?
Table 4.2.7: Is the company fair to its customers in its credit role?
Table 4.2.8: How effective is the credit payment?
Table 4.2.9: Has credit brought about increase sales?
Table 4.2.10: does the company sure its customers over credit?
Table 4.2.11: how often does the company sure its customers over credit?
Table 4.2.12: Estimate the credit debt burden on the company
Table 4.2.13: Does the company benefit from its credit policy?
 
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
The aim of setting up any business organization is to maximize profit. This can be achieved through an effective management of its human and material resources so as to bring about increased output in order to achieve these noble objectives cam be able to remain buoyant financially so that pressing obligation of the organization will then be met.
      Credit management policies were encouraged by the rising size of the business. The industrial revolution in Europe in the early nineteenth century brought about technological advancement in most business organization. The result was an increase in production in terms of goods and services.
        There was then the need to sell the large volume of output that has been produced so it became absolutely important for business organizations to issue credit terms since most business men were unable to purchase whole bulk of the goods on cash basis.
        A business organization must set standard to facilitate the recovery of its cash on time. The word “credit” was derived form the Latin word ‘Coden’ which means to believe or trust.
        Credit period allowed for payment of goods and services already delivered to customers and faith. Facts are is important for pre-requisite in the management of credit because, if you trust somebody, that means you really have faith in that particular person. So faith serves as a motivating factor in the process of granting credit to costumers. This can only be charged if the customer should abuse the confidence imposed on him along the line. Therefore, there is usually an element of risk when carrying out credit sales since there is usually an uncertainty of payment. The nature of credit that the person involved in is at least in two dimensions.
         Firstly, he must obtain credit on time so as to meet up with production schedules in time of the wages of the workers carrying out the production of goods and services which it hopes to sell.
        Secondly, he must extend credit to his customers as a way of selling its, goods and services already produced. In the first case, the credit involves the business organization and a financial institution. While in the second case, the credit relationship is between the business organization and the customers.
        Credit constitutes vital aspect of organization. The type of policy being employed by typical manufacturing industry towards maintaining a sound credit results in the improvement of quality of life and working environment. In spite of these favorable impacts on the various credit policies on the general well-being of firms, most organizations do not consider proper credit management as a vital tool for organizational survival.
    Organization that do not propagate a sound credit management policy always suffer the problems of having to write some portion of their revenue off as bad debt thereby write gradually leading to detriment effect on the organization.
The general objective of the study is to examine the credit management policy in a manufacturing company, focusing on Dangote Cement Company Plc. Obajana . this objective will be achieved by pursuing the following specific goals
-    To ascertain the extent to which credit management policy is being employed in Dangote Cement Company.
-    To determine what extent it has helped in the general growth or profitability of organization.
These are questions that the research work tends to find answer. These questions emanated from the topic of the study that the researcher tends to investigate some of the questions are:
-    How can credit be best managed in Dangote Cement Company Plc. Obajana?
-    To what extent has credit helped in the general growth or profitability of organization?
-    How can credit be best managed in Dangote Cement Company Plc Obajana?
-    What is the policy to be adopted in the credit management of manufacturing companies?
The study aim to bring into stronger focus on the relevance of credit management policy and its application inn the growth and expansion of a business unit.
It is hoped that the findings of this study will expose the strength and weakness credit management in a manufacturing company.
 The study will also be of great important to further researchers who may want to carry out a research on the topic related to this very work.
It will also reveal to organizations on how to management credit in their various originations
        The scope of the study covers the credit policy of Dangote Cement Coompany Plc, Obajana. The Cement Company has been critically studied here. It contains an investigation of likely problems that hinder the efficiency of a company. Hence, serious attempts are made to suggest possible solutions to the problems.
Credit: This can be define as a trust which allows one party to provide resources to another party where that second party does not reimburse the first party immediately (thereby generating debt), but instead arranges either to repay return those resources (or other materials of equal volume) at a later date. The resources provided may be financial or they may consist of goods or services.
Management: This is the process of utilizing an organization’s resourced to achieve specific objectives through the functions of planning, organizing, leading and controlling. In other word, management deals how we can utilize available resources to achieve planned objectives or goals.
Credit Management: This is concerned with the regulation control of the debt obligation of business organization.
Policy: This is laid down rule or regulations which an organization embraced in order to achieve its objectives.
Line of Credit: This is a form of arrangement between a commercial bank and a form that states the amount of unsecured short term credit, the bank will make available to the borrower provided the bank has enough for leading.
Revolving Credit Management: This is a credit that is automatically renewed after certain conditions are fulfilled. In other words, it means that there is no need for further application for another credit provided that the conditions specified in the credit are fulfilled accordingly.
Bad Debts: Signifies that losses which are loaned to individual or group of individuals that cannot recover back and have to be written off.
A Problem Loan: This is the type of which there are major breakdown in the recovery or collection.
Working Capital: The excess of current asset over current liabilities of business.
Net Working Assets: This is different current assets and current liabilities.
Liquid Capital: This is made up of capital that are easily convertible from one to another, this included stock, cash in hand and cash at bank.
Debtors: They are the individuals or group of individuals who owes another individual or groups of individuals.
Debts: This is the amount of money which individual or group of individuals have to pay to another individual or group of individuals.
        This work has been divided in five chapters. Chapter one is on the introduction, it consists of statement of the problem, objectives of the study, statement of hypotheses, significance of the study scope and limitations of the study,  operational definition of terms as well as organization of work.
Chapter two focuses on literature review which captures the definition of credit management, types of credit management amongst others.