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" An Alternative Corporate Governance Framework for the Nigerian Banking Sector "
Olowosegun, Oladipo
Moloi, Tankiso
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Latin Dissertation
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English
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| Record Number
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1058955
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| Doc. No
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TL58072
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| Main Entry
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Olowosegun, Oladipo
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| Title & Author
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An Alternative Corporate Governance Framework for the Nigerian Banking Sector\ Olowosegun, OladipoMoloi, Tankiso
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| College
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University of Johannesburg (South Africa)
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| Date
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2019
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| Degree
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Ph.D.
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2019
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| Note
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298 p.
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| Abstract
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Corporate governance has become a global phenomenon, more so because of reports of major corporate collapses, the positive impact of technology on international trade and foreign direct investment, but also because of the desire to ensure good performance by corporations as well as the need to prevent a re-occurrence of business failure attributed to poor corporate governance practices. Consequently, corporate governance guidelines and codes have been developed by international, regional and national regulatory institutions to ensure efficient running of the corporation, and prevent failure. The study aim was to evaluate the appropriateness of the corporate governance framework in the Nigerian banking sector in view of perennial reports of corporate governance breaches that often led to the intervention of the Central Bank of Nigeria (CBN) in the management of some banks in Nigeria. The study adopted qualitative content analysis to examine the extent of banks’ compliance with the CBN mandatory code of corporate governance and other statutory requirements disclosed in the annual report. Further, a questionnaire survey was conducted among licensed banks in Nigeria to test the practicality and importance of the clauses in the extant CBN code of corporate governance, principles embedded in international acclaimed codes and guiding principles, as well as factors that affect the practice of good corporate governance by banks in Nigeria that formed the basis of the proposed framework. The results of qualitative content analysis show that there was substantive compliance with the CBN code and other statutory requirements except for rights and functions of shareholders and engagement of shareholders' associations that received very little attention in the assessed annual reports. However, it is unclear whether compliance was cosmetic or a conviction of the benefits derivable from embracing the spirit rather than the letters of the code. The results of the questionnaire survey show that, substantially, the provisions in the CBN code are important and practical except for the provisions on separation of power that only 64.3% of the respondents agreed were practical, while 100% agreed that there were enough laws, rules and codes to ensure good corporate governance in Nigeria's banking sector. The study also found that the banks appear to embrace regulation than voluntary compliance as only 31.3% agreed that regulation should be replaced with voluntary corporate governance but the monitoring and enforcement of rules and codes by regulators could be an herculean task. Further, 68.8% agreed that inadequate sanctions and penalties encourage noncompliance with rules and regulations as some banks may weigh the cost and benefits of compliance before deciding to comply with a rule or regulation. On the basis of this, the study proposes a principles-based corporate governance framework driven by ethical leadership, commitment to applying principles and explaining practices whereby the regulators issue guidelines and require banks to not only apply the guidelines but explain how the guidelines were applied in their annual report. The study contributes to the burgeoning literature on corporate governance in emerging markets by developing an alternative corporate governance framework for the Nigerian banking sector.
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| Descriptor
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Annual reports
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Auditing standards
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Banking industry
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Corporate governance
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Merchant banks
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Moloi, Tankiso
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University of Johannesburg (South Africa)
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