En/Countering Corrupt Leadership and Poor Corporate Governance in the Nigerian Banking Sector: Towards a Model of Ethical Leadership

Abstract

The recent global corporate scandals, banking frauds and financial mismanagement involving high-profile institutional failures have necessitated the saliency of corporate governance and ethical leadership in the banking sector. This ugly development has intensified debates on the workability of corporate governance framework as a check on the excesses of corporations, banks and financial institutions. In this paper, attention will be focused on Nigerian banking sector, which has recently witnessed one of the worst forms of corporate scandals, stemming largely from financial impropriety by its leaders, as well as corrupt leadership that failed to gain the confidence and trust of customers and stakeholders. In remedying poor corporate governance as well as fiduciary impropriety in the Nigerian banking sector, this paper proposes ethical leadership, a leadership model that is visionary as well as responsible to various stakeholders. Ethical leadership takes legitimacy from strength of character that fosters trust and ethical conduct. Although heavy regulatory measures are necessary, however, ethical leadership will promote positive corporate norms and ethical climate that would combine with corporate regulations for better banking practices.