This paper examines the moderating effect of loan monitoring on the relationship between credit policy and debt recovery of some commercial banks in Nigeria. The effective credit policy on debt recovery can reduce the risk of banks’ failure, lower the non-performing loans and improve the financial stability of the banking sector for economic growth and development. Using panel data of 8 sampled banks for a period of ten years (2014-2023). The data were extracted from the annual accounts and reports of the sample banks. Multiple regression technique was employed in analyzing the data through STATA 14.0. Based on the analyses of the data collected, the paper found that credit collateral requirements and credit assessment procedures are negative and significant in influencing the debt recovery of the listed banks. However, credit terms and credit control procedures are positive and significantly related to debt recovery of the listed commercial banks in Nigeria, while loan monitoring is positive but insignificantly related to the debt recovery of the banks. The paper, therefore, concludes that credit policy can improve the debt recovery of some commercial banks in Nigeria. Based on the findings of this paper, the management of the banks should encourage credit terms and credit control procedures to maximize their debt recovery level.