Stakeholder Perception of Corporate Governance Codes and Frameworks in the Nigerian Banking Industry

Abstract

The study seeks to examine the perception of stakeholders on the importance of corporate governance in the Nigerian banking sector. In particular the study seeks to examine the perception of stakeholders on the definition of corporate governance, familiarity with developments in corporate governance codes both on a national and international level, and the importance of corporate governance to the Nigerian banking sector. Using a mixed method approach involving the use of a quantitative questionnaire survey and qualitative semi-structured interviews with various stakeholders in the Nigerian banking sector, the study helps confirm the growing focus of corporate governance from a shareholder centric to a more stakeholder centric definition of corporate governance. The study also aids in confirming the increasing awareness of developments in corporate governance codes both on a national and international level and the importance of corporate governance to the Nigerian banking sector. While many of the stakeholders agree that international guidelines are relevant for the Nigerian banking sector, some stakeholders had reservations about transposing international guidelines directly into the Nigerian banking sector without a need to localise them to fit the applicable country-context. The study contributes to the growing body of literature in this area in developing countries. It is hoped that the findings derived from this study will contribute to the development of a theoretical framework on effective corporate governance practices in Nigeria. In a similar vein, the study also raises interesting questions for future researchers on corporate governance in Nigeria. It is anticipated that the study can inform banking regulators and policy makers with guidelines to improve the corporate governance standards in the financial sector.