A Critical Evaluation of the Role of the Central Bank of Nigeria in Ensuring Corporate Governance in Nigerian Banks Post Consolidation

91 Pages Posted: 21 Nov 2009 Last revised: 8 Feb 2010

Date Written: August 21, 2009

Abstract

Corporate governance describes the expectations of stakeholders on how corporations are governed. These expectations or perceptions keep changing; and because they keep changing, the managers of corporations and indeed all stakeholders need to keep pace with these expectations.

In this paper, the researcher reviewed the various attempts made by Central Bank of Nigeria (CBN) at entrenching corporate governance in Nigerian banks with a special focus on whether banks in Nigeria are complying with the code of corporate governance post consolidation (2005-2009).

The study employed an interpretivist methodology and collected data through observation, document analysis and a review of the CBN case.

The case x-rayed the regulator-induced banking consolidation reforms and the compliance with the mandatory code of corporate governance for banks in Nigeria post consolidation as well as issues bordering on supervisory framework, architecture and risk management.

The research revealed that banks in Nigeria are committed to conforming to the dictates of the code of corporate governance. The study further revealed that these banks are struggling to achieve a balance between performance and conformance, thereby calling for a rethink on the relationship between corporate governance and risk management.

The research made far reaching recommendations on how CBN and also the banks can keep pace with the ever changing dictates of corporate governance in Nigeria.

Keywords: Corporate Governance, Consolidation, Risk Management, stakeholders, supervision, regulation, Central Bank of Nigeria, post consolidation, Nigerian Banks

Suggested Citation

Offor, Emeka, A Critical Evaluation of the Role of the Central Bank of Nigeria in Ensuring Corporate Governance in Nigerian Banks Post Consolidation (August 21, 2009). Available at SSRN: https://ssrn.com/abstract=1509454 or http://dx.doi.org/10.2139/ssrn.1509454

Emeka Offor (Contact Author)

ACTAG ( email )

P.O. Box 72740
Victoria Island
Lagos, 101241
Nigeria

HOME PAGE: http://www.actag.com.ng

Register to save articles to
your library

Register

Paper statistics

Downloads
2,069
Abstract Views
14,683
rank
6,737
PlumX Metrics