Corporate Governance and Bank Failure in Nigeria: Issues, Challenges and Opportunities

Ifeanyi.Desmond Nworji, Olagunju Adebayo, Adeyanju Olanrewaju. David


The paper is set out to investigate issues, challenges and opportunities associated with corporate governance and Bank failure in Nigeria and to see if a significant relationship exists between corporate governance and Banks failure. Relevant data were collected from the staff of eleven randomly selected commercial banks based in Lagos, using a well structured questionnaire. The statistical technique for data analysis and test of hypothetical proposition is Pearson product coefficient of correlation(r.) The result of the findings revealed that the new code of corporate governance for Banks is adequate to curtail Bank distress and that improper risk management, corruption of Bank officials and over expansion of Banks are the key issues why Banks fail. The study concluded that Corporate Governance is necessary to the proper functioning of banks and that Corporate Governance can only prevent bank distress only if it is well implemented. Finally the study recommends: that corporate governance should be used as a tool to help stem the tide of distress, as it entails conformity with prudential guidelines of the government; the Central Bank and NDIC should enforce the need for all banks to have approved policies in all their operation areas and strong inspection division to enforce these policies; that government owes the country a patriotic duty to establish and sustain macroeconomic stability in order for the banking system to perform at its optimum capacity , economic and political stability can help prevent bank distress and more importantly, is the need for qualified staff in the banking system as this will enable the utilization of expertise, skill and care in the performance of duties by staff, this will lead to better performance.

Full Text: PDF
Download the IISTE publication guideline!

To list your conference here. Please contact the administrator of this platform.

Paper submission email:

ISSN (Paper)2222-1697 ISSN (Online)2222-2847

Please add our address "" into your email contact list.

This journal follows ISO 9001 management standard and licensed under a Creative Commons Attribution 3.0 License.

Copyright ©