Recently banks witnessed rising effects of credit portfolios and these significantly contributed to financial distress in the banking sector. Banks collects deposit and lends to customers but when customers fail to meet their obligations, problem arise and it affects the profitability of the bank. This study evaluates the effect of credit administration on profitability of banks in Nigeria. Financial ratios as measures of bank profitability and performance were the data collected from secondary sources mainly the journals, text books and internet documents. Descriptive and chi-square were used in the analysis. The findings revealed that credit risk management has significant impact on the profitability of Nigeria banks. Therefore, management need to be cautious in setting up a credit policy that might not negatively affect profitability and also they need to know how credit policy affects the operation of their banks to ensure judicious utilization of deposits.