Code of corporate governance for banks and other financial institutions in nigeria
CORPORATE GOVERNANCE IN THE FINANCIAL SECTOR IN NIGERIA
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CORPORATE GOVERNANCE IN THE FINANCIAL SECTOR IN NIGERIAFinancial Institutions constitute a critical sector of ant economy. Since the aftermath of the financial crisis in the early 90’s, the stability of the financial system has assumed a greater focus as a key objective of economic policy in Nigeria. Poor corporate governance has been identified as one of the major factors in virtually all known instances of financial sector distress. It is therefore crucial that financial Institutions observe a strong corporate governance ethos. 
In addressing the issue of corporate governance in the financial sector, the Bankers’ Committee set up the Sub-Committee on Corporate Governance to make recommendations and propose a draft Code for adoption by financial institutions. This was in realization of the need to amplify the Report of the Peterside Committee on Corporate Governance to address the peculiarities of the financial sector. THE CODE OF CORPORATE GOVERNANCE FOR BANKS AND OTHER FINANCIAL INSTITUTIONS The Code of Corporate Governance for banks and Other Financial Institutions in Nigeria are explicit in its recommendations on best practice, including constituting an effective board and identifying the principal responsibilities of the Board, remuneration of Directors, Board performance assessment and the Audit Committee. The Code also considers factors relevant to depositor and investor confidence given the importance of these stakeholders to the stability of the financial sector.
The Code should not be regarded as threat to entrepreneurial drive and spirit. A system that combines enterprise with integrity will promote good corporate governance without stifling initiative and creativity. It should be emphasized that good corporate governance rests ultimately with the Board of Directors. In identifying that good corporate governance hinges on Board competence and integrity, it should be realized that standards of probity and fiduciary responsibility in the wider business environment is equally critical. All these help to promote sound corporate governance. Download 0.59 Mb. Share with your friends:
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