EVALUATING THE IMPACT OF CORPORATE GOVERNANCE ON THE NIGERIAN BANKING SECTOR.(A CASE STUDY OF THREE SELECTED BANKS IN LAGOS STATE).
The study is aimed at Evaluating the Impact of Corporate Governance on the Nigerian Banking Sector.
The two major objectives of the study were to evaluate the principles of corporate governance and to identify the challenges of corporate governance on the Nigerian banking sector.
Primary and secondary sources of data were used to obtain information for the study. The questionnaire was designed in five point Likert scale format, in line with the objectives set out to achieve the study.
In calculating the sample size, the researcher applied the statistical formula for selecting from a finite population as formulated by Yamane. The Chi-square (X2) statistical test method was used to test the hypotheses.
Findings indicate that the principles of corporate governance include role and responsibilities of the board, disclosure and transparency, rights and equitable treatment of shareholders and the challenges of corporate governance on the Nigerian banking sector includes technical incompetence of board and management, increased levels of risks, and inadequate management capacity.
Based on the findings, the study recommends that the central bank of Nigeria should put more efforts to establish or promulgate regulations which will enforce compliance to the principles of corporate governance by boards of the Nigerian banks and that efforts should be made to educate the Nigerian public especially the shareholders of banks on the place and need for corporate governance so that they can insist on it when they go for annual general meetings (AGM)