CORPORATE GOVERNANCE AND PERFORMANCE IN NIGERIA BANKING INDUSTRY

ABSTRACT Although the consolidation and regulatory reforms were initiated in the Nigerian banking industry in 2009, the expected improvement in the operational performance and efficiency in the banking system has not been reflected in the overall health of the economy. It is in the light of the above, that this research examined the relationships between corporate governance mechanisms and performance of banks in Nigeria. This study used secondary data derived from publications of Central Bank of Nigeria CBN), Nigeria Deposit Insurance Corporation (NDIC) and Security and Exchange Commission (SEC) from 2011 to The Pearson Correlation was used to assess the relationships between the corporate governance variables and banks' performance. Statistical Package for Social Sciences (SPSS) was used for the analysis. The study to observed that a significant negative relationship exists between board size, board composition and the financial performance of Banks, while a positive and significant relationship was observed between directors' equity holding and banks' performance. The study concludes that, the directors' equity holding is paramount in boosting the performance of banks in Nigeria. Thus, this study recommends that the regulatory authorities should make sure that all directors own a reasonable amount of equity in the banks they oversee as this will move them to do their best to enhance the performance of these banks.