Frequent bank failures in Nigeria, resulting in enormous losses of investments and jobs, have raised questions about the banks' compliance with the code of corporate governance. This single exploratory qualitative case study focused on the regulators of banks in Nigeria, the CBN, to find out the problems they may be encountering. Purposeful sampling was used to select 25 participants, and data were collected through Semistructured interviews. The agency theory served as the conceptual framework. Findings showed that the CBN had put measures in place to ensure full compliance. Some of which included the installation of robust IT architecture, the recruitment of highly skilled IT personnel, in-depth monthly e-examinations of the banks, application of steep penalties, enforcement of the omnibus clause, and continuous staff training. Findings revealed in this paper show that the Central Bank of Nigeria had implemented several measures that would forestall future bank failures among Nigerian banks.
Since the emergence of banks in Nigeria in 1892, the Nigerian Banking sector has undergone a restructuring series. Before the 2006 banking consolidation exercise, many banks have gone under primarily due to poor management and inadequate financial reporting. The consolidation of banks in 2006 became necessary to forestall the sector's systemic collapse since many of the banks were distressed and unable to meet their customers' expectations. This qualitative review of the Nigerian banks focused on what transpired in the sector from 2006 to date. Archival and content analysis methods were used in the data collection and analysis process mainly because some banks have been liquidated while others have been merged or acquired by other banks. Findings revealed that some banks that survived the post-2006 consolidation exercise had been liquidated; some have merged with others while the banks are still operating as standalone. The CBN has introduced the bridge banks' concept to acquire and manage distressed banks pending new buyers' time. The amended code of corporate governance of 2016 has drastically improved the CBN's regulatory and monitoring activities. Accordingly, the CBN is better equipped. Lasting measures are in place to forestall any unanticipated disruptions in the Nigerian banking sector.
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