Development of Corporate Governance and the Effect of Corruption on the Nigerian Financial Institutions

Umar Aliyu Mustapha, Norfadzilah Rashid, Abdullahi Bala Ado and Saheed Ademola Lateef

In Nigerian business environment before the issuance of the code of corporate governance many regulations such as Company and Allied Matters Act (CAMA 1990), Investment and Securities Act 1999, Bank and Other Financial Institution Act 1991, Statement of Accounting Standard (NASB 2003), Insurance Act 2003, were all available. But until now the issues of corporate failure, governance lapses, and bankruptcy has continued due to the many reasons, which includes corruption and poor compliance with the policy. Nigerian financial system as a provider of funds is overwhelmed with problems of insider dealings, macroeconomic instability caused by a large number of corruptions; other issues include the failure of compliance with the code of corporate governance. Furthermore, inadequate disclosure and transparency of financial positions, critical gaps in the regulatory framework and uneven supervision and enforcement exist. Moreover, inadequate management processes at the regulatory institutions and weaknesses in the business environment are other problems. This study provides a summary of the corporate governance development in Nigerian and also explained to what extent corruption affected the Nigerian financial system and proposed a suggested solution to the problems in the sector. Such as need for the improvement of the current efforts by the relevant authorities in enforcing the regulations, undergoing into campaign and seminars against corruption and regular update on the existing international code to meet the global standard.

Volume 12 | Issue 1

Pages: 11-15

DOI: 10.5373/JARDCS/V12I1/20201003