Code of Corporate Governance for Banks in Nigeria Post-Consolidation 2006: Revision Required

Abstract

The Code of Corporate Governance in Banks in Nigeria Post-Consolidation 2006 (CBN Code) issued by the Central Bank of Nigeria is an industry-specific code applicable to all money deposit banks operating in Nigeria. Between 1st March 2006 when the CBN Code came into force and now, a lot has happened in the Nigerian banking sector. Also, there are some practices which are beneficial in the strengthening corporate governance not provided for in the CBN Code. These underscore a need to have the CBN Code revised. This paper highlights those matters which should be taken into account in any attempt at revising the CBN Code. These relate to those matters that are provided for in the CBN Code, but are inadequate in view of present developments and challenges. Also highlighted are other relevant matters that are not provided for in the CBN Code at all, but which should be provided for in a new, improved corporate governance code for banks in Nigeria.