Nigerian Banking Reform: Recent Actions and Future Prospects

Moderating Effect of Corporate Governance Between Recapitalization and Bank’s Performance: Proposed Framework

“…In addition, Ten banks were adjudged to be in grave states with deficiencies in capital adequacy and eight out of them also had significant flaws in risk management practices, liquidity, and corporate governance policies whereas, the aggregate of a non-performing loan of these banks was 40.81% (CBN, 2010;Sanusi, 2011). Moreover, the Executive Directors (ED) of these eight banks were replaced immediately, while fresh capital was injected to the all 10 banks by means of bailed out amounting to N620 billion, in the form of Tier two Capital intervention by the CBN (Alford, 2011;CBN, 2010;Sanusi, 2010;Shehu et al, 2014).…”

Nigerian SMEs: Commitment and loyalty to their banks

“…This suggests that profit oriented SMEs appear to demonstrate a relative lack of moral business obligation to reciprocate relationships in an environment of significant financial challenge (Colgate and Lang, 2005;Berger and Udell, 2006;Beck et al, 2011). Where the financial crises of Nigeria have delivered only modest banking performance (Alford, 2010), commitment to these relationships from the customer perspective is based on emotional desire and benefits potentially delivered but without moral relevance.…”

Barriers to Effective Corporate Governance Reforms: Corruption and the Peculiar Case of Nigeria

“…The CBN also referred the executives of the banks whose behaviors had been found inappropriate and fraudulent to the Economic and Financial Crimes Commission (EFCC) for prosecution. Part of the CBN reforms in 2009 was to institute a policy requiring banks to adopt a common accounting period and year end in order to enhance transparency in the financial reports of banks and enable adequate comparison of banks' performances (Alford, 2010). The primary objective of this policy was to further enhance the level playing field in the financial sector and prevent corrupt practices.…”