This project work is set up to study and find out the effect of loan management on bank performance in Nigeria banks. (A case study of First Bank PLC.) Data were collected from the First Bank of Nigeria PLC Osun state branch through the manager and the subordinates in the organization. Some other method adopted were questionnaires, observation of activities and procedure. The study used chi-square method to analyze the data and found that loan management had significant effect on bank’s performance. The study recommended that banks should focus on management of loan facilities so as to improve their performance.