THE RELEVANCE OF CORPORATE GOVERNANCE IN NIGERIAN BANKING INDUSTRY

¹Ezu, Gideon Kasie & ²Oranefo, Patricia Chinyere
¹(Department of Banking and Finance, Nnamdi Azikiwe University, Awka, Nigeria)
²(Department of Accountancy, Nnamdi Azikiwe University, Awka, Nigeria)

ABSTRACT

This research work focuses on the relevance of corporate governance in Nigerian banking industry. The inability of some banks to monitor the activities of directors and other key staff in the bank has led to poor management and bank distress. The objectives of the study includes; examining the effect of corporate governance on the service delivery of banks; assessing the role of corporate governance on customer satisfaction and to determining the extent to which the adoption of corporate governance by banks has helped on the service delivery of banks. Three research questions were formulated, which were meant to guide the study and three hypotheses were equally formulated. The data were collected through primary source; the instrument used for this research work was questionnaire. The data generated through questionnaire were analyzed using tables and percentile method, while hypotheses were tested using correlation and T-test statistics. The result shows that corporate governance has a significant effect on the performance of banks. There is a relationship between the adoption of corporate governance and the service delivery of banks and that corporate governance plays a very vital role in ensuring customer satisfaction. It was recommended that government should provide adequate regulatory frameworks that will ensure customer protection. Banks should make their customers their first priority because they depend on them for survival.

Keywords: Profitability, distress, customer retention, corporate governance, customer protection.