Board Effectiveness in the Nigerian Banking Industry
Pan-Atlantic University - Lagos Business School
Dimitrios N. Koufopoulos
Brunel University London - Brunel Business School; Gnosis Management Consultants; HOCG
January 28, 2010
Board effectiveness is particularly important in the Nigerian banking industry because a number of financial failures, frauds, and questionable business practices had adversely affected investors’ confidence.
This study evaluated corporate governance in Nigerian banks with regards to board performance, culture and diversity, and impact on board effectiveness. It also attempted to identify key determinants of effective boards.
The empirical findings reveal that boards of banks operating in Nigeria embark on regular evaluation of their activities as a means of improving their performance.
From the directors’ perspective, the most important determinant of effective boards in the Nigerian banking industry is directors’ competence. Other major determinants include board diversity, compliance with corporate governance code and relevant laws/regulations, board independence, and degree of openness in board processes.
This paper draws a number of conclusions and recommendations and also highlights some limitations that can be improved upon in future studies.
Number of Pages in PDF File: 25
Keywords: Corporate Governance, Banks, Board Processes, Board Culture, Board Appraisal, Board Relationships, Board Strategic Role, Board Functions and Performance
Date posted: March 14, 2010