Corporate Governance of Banks and the Banking Reforms in Nigeria : The Issues

The role of banks is integral to the development of any nation due to their multiplier effects on the economy at large. This is particularly true of Nigeria where banks have an overwhelmingly dominant position in the financial system. More so, the effects of the global financial crisis on many emerging economies such as Nigeria which have re-echoed the importance of corporate governance have compelled the financial and non-financial regulators such as the central bank of Nigeria and the Securities and Exchange Commission to revise their codes of best practices for the banks and other public companies. This paper makes a contribution to the existing literature on the state of corporate governance development in the Nigerian banking sector, the impacts of the banking regulations and the efforts put in place at ensuring that the banks are well governed. It also addresses the issue on whether the banking reforms carried out by the central bank of Nigeria in relation to governance are enough or adequate for the survival of the Nigerian financial sector in the face of the global challenges. It argues that while standards and codes are being enacted and revised by the CBN and the SEC, there is need for the Nigerian internal and external environments (be it socio-cultural, political, economic, legal, religious etc.) to support the reforms