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OBI, JAMES NWOYE and UWANDU, IBEZIM ALEXANDER (2015) THE EFFECT OF POOR CORPORATE GOVERNANCE ON THE PERFORMANCE OF NIGERIAN BANKS. African Journal of Innovative Research and Advanced Studies, 3 (1). pp. 1-44. ISSN 2204-012x

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In today’s ever-competitive banking environment, poor corporate governance has been identified as a powerful negative force against the performance and profitability of banks operating in Nigeria. This study examined the problems militating against effective corporate governance in the Nigerian banking industry. Thus, the aim of this study was to understand the problems and challenges responsible for persistent poor corporate governance in Nigerian banking sector. In the course of the research study, six (6) commercial banks in Nigeria were chosen. The stakeholders interviewed included senior executives and some middle level managers including a broad spectrum of bank customers. Data for the study were gathered over three-month period using unstructured set of interview questions and data analysis was carried out through thematic evidences arising from the data analyzed. Corporate governance has to do with the management of banks profitably so that they can increase the wealth of shareholders and serve the purpose of other stakeholders. Over the last two decades, corporate governance in the Nigerian banking sector had suffered poor management culminating in distress and bankruptcy of many banks. There was unbridled corruption and financial malpractices in the rank and file of the banks’ staff. The Federal Government through the Central Bank of Nigeria (CBN) had to introduce various fiscal and monetary policies including recapitalization and consolidation policies to restore sanity in the banking sector. In recognition of the fact that the banking sector is essential for the growth and survival of any nation, this study recommends that CEO duality should not be encouraged any longer in banks. Furthermore, persons to be appointed to high positions of authority and responsibility should be of proven integrity with adequate professional qualification and experience to manage the banks to success

Item Type: Article
Uncontrolled Keywords: Performance, Productivity, Financial malpractices, Management
Subjects: H Social Sciences > H Social Sciences (General)
Divisions: Faculty of Law, Arts and Social Sciences > School of Social Sciences
Depositing User: Mrs Hannah Akinwumi
Date Deposited: 16 Jan 2018 10:53
Last Modified: 16 Jan 2018 10:53

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