Perspective on Corporate Governance Challenges for Banks Post Consolidation in Nigeria

Abstract

The purpose of this research is to investigate the barriers and issues hindering effective corporate governance development in Nigeria. A survey research method was used to gather data from 92 respondents from 20 firms listed on the Nigerian Stock Exchange. This study provides vital information on corporate governance barriers/challenges hindering its development and implementation in Nigeria. The findings reveal that challenges hindering the implementation and promotion of effective corporate governance in Nigeria include abuse of minority shareholders’ rights, lack of commitment on the part of the board of directors, lack of adherence to the regulatory framework, weak enforcement and monitory systems, and lack of transparency and disclosure. Nigeria has ample laws that are designed to protect shareholders’ rights and ensure good corporate governance for post-consolidation of banks, but effective enforcement of these laws and regulations constitutes a major challenge for the development and implementation of an effective corporate governance system in the country. The paper recommends amongst others, that the existing CBN guidelines on appointment to the board of financial institutions should continue to be observed. Only people with proven integrity and who are knowledgeable in business and financial matters should be on the board. Directors should be able to read and interpret financial statements.