Corporate Governance and the Performance of Nigerian Banks

Abstract

This study investigated the ways and manners in which the affairs of banking sector in Nigeria are managed by those charged with the responsibility. It showed the relationship between corporate governance and the performance of banks in Nigeria. The population of the study consisted of all the twenty four consolidated banks in Nigeria that met the requirement of ^25billion capital base as at today. A sample of five of them was considered adequate for generalization. One hundred and thirty questionnaires were administered on the management staff of those selected banks out of which 120 were returned and10 were not properly filled. Statistical Package for Social Scientist (SPSS) was used to analyze the data collected and interpretation of data was done through simple percentages. Pearson Product Moment Correlation was used to test the relationship that exists between efficient Corporate Governance in the banking sector and the roles of external auditor and the composition of the board of directors. The study revealed that, lack of proper corporate governance is the bane of so many banks in Nigeria. The collapse and failure of many banks was as a result of both poor audit control and directors' negligence to observe due diligence and acceptable standard practices. However, banking sector has greatly contributed to the gross domestic product of Nigeria and consequently improved the economy. Therefore, transparency, honesty and objectivity have to be encapsulated in the running of banking operations so as to have a positive effect on the continuity of the organization.