The Role of Corporate Governance in the Growth of Nigerian Banks

This study investigates the role of corporate governance in the growth of Nigerian Banks. A critical review of the situation in the Nigerian corporate environment shows that there have been several cases of abuse of trust by board of directors in some banks, which can be reduced through corporate governance. A multiple linear regression analysis involving ordinary least square was employed to test the hypothesis to examine the extent which corporate governance has improved the growth of Nigeria banks. The statistical significance of the variables was first determined using ANOVA statistics. The findings reveal that the problems of corporate governance in the Nigerian banking sector include: instability of board tenures, board squabbles, ownership crises, high level of insider dealings. While the weaknesses of corporate governance have been identified to include ineffective board oversight functions, disagreement between boards and management giving rise to board squabbles, lack of experience on the part of the Board of director’s members and weak internal control. It is therefore recommended that issues bordering on poor corporate governance which come to notice should be promptly tackled while customers should report such issues to regulatory authoritie