The Roles Of Corporate Governance In The Nigeria Commercial Banks’ Performance, A Case Study Of Uba (United Banks Of Africa)

ABSTRACT

The research focuses on the roles of corporate governance in the Nigeria commercial bank performance, a case study of UBA (United Banks of Africa). The major objective of the study is, to determine the extent to which noncompliance with corporate governance codes by the bank executives contributed to this present crisis and management problem, to ascertain the relationship between cooperate governance and the performance of commercial banks in Nigeria, to investigate if there is any significant change in the performance of banks in Nigeria by the proper implementation of corporate governance by the board of the directors and to empirically determine factors that militates against successful implementation of corporate governance framework in commercial banks. Data were collected through primary and secondary sources. The descriptive survey method was used and the research tool was questionnaire. Total of 129 respondents were obtained using a strained random sampling techniques by balloting and they answered the questionnaire. Data analysis using Chi-square formula and presentation was done by the use of tables. The major findings from the study are: the factors that militate against successful implementation of corporate governance framework in commercial banks are high. On the basis of the above findings; the study concludes that competitive advantage is an important factor in the strategic management of companies. On the basis of the above findings it was recommended that: Corporate Governance is necessary to the proper functioning of banks and that Corporate Governance can only prevent bank distress only if it is well implemented. Steps should also be taken for mandatory compliance with the code of corporate governance. Also, an effective legal framework should be developed that specifies the rights and obligations of a bank, its directors, shareholders, specific disclosure requirements and provide for effective enforcement of the law. For the purposes of further studies, further research could explore the relationship in more in specific categories for example, in not-for-profit organizations, in government organizations, and in family companies. Since this study focused on the Nigeria banking sector it would be beneficial to have a clearer understanding of corporate governance roles in other types of organizations. Such research could address the similarities and differences of the roles in different organizations and consider also the legal requirements for different organizations.