BOARD OF DIRECTORS AND THE ENFORCEMENT OF CODE OF CORPORATE GOVERNANCE IN CENTRAL BANK OF NIGERIA

For effective and smooth running of businesses, firms and companies, corporate governance have come to occupy a centre stage. The subject of corporate governance leapt to global business limelight from relative obscurity after a string of collapses of high profile companies. Corporate governance to put quite concisely is about building credibility, ensuring transparency and accountability as well as maintaining an effective channel of information disclosure that would foster good corporate performance. However, to ensure strict adherence to standardized rules and code of conducts, the Central Bank of Nigeria (CBN) and other monitoring authorities have been charged with the responsibilities to ensuring transparency and accountability as well as maintaining an effective channel of information disclosure that would foster good corporate performance. Alas, we have experienced series of corporate governance irregularities as well as non-adherence in the Nigeria financial sector. This had led to winding up and liquidation of banks. Notably among the problem is the deterioration of their asset portfolios, largely due to distorted credit management, was one of the main structural sources of the crisis. It is the on this basis that this dissertation seeks to assess and analyse the role of the board of directors in the enforcement of code of corporate governance in the CBN. Other sub-objectives include: to determine the extent to which non-compliance to the codes of corporate governance contributed to the financial crisis and management problems experienced prior to the consolidation period and till date; to investigate the challenges militating against the successful enforcement of the code of corporate governance in the Central Bank of Nigeria; and to also investigate what happens to the confidence of stakeholders (depositors) in a situation where the codes of corporate governance is not strictly adhered to by the financial institution. In carrying out the study, we employed the Non-doctrinal Approach as well as books consultation, journals, presentation and online sources. The findings of the study revealed that activities in the Nigeria Money Market are closely linked with World Financial Markets. This is supported by the argument; the study also portray that there are institutionalized and regulatory hiccups that have been posing serious challenge to the successful execution of corporate governance in the country; and the study finally revealed that the efforts of the boards and the CBN still leave much to be desired in the area of proper implementation of corporate governance. The study further recommends that the CBN should beam his regulatory searchlights on strict monitoring and supervision so as to ensure that the operational activities of operators in the banking industry conform to standard; it also recommends that the CBN and other regulators should steer the course of harmonizing the multiplicity of corporate governance codes in Nigeria. This could be a prerequisite for a rational behaviour of organizational sustainable development and growth. This study finally concludes that strict adherence to the codes of corporate governance and professionalism will not only bring about growth and development in the financial sector but also aid in measuring up with her counterparts abroad.