Saturday, November 10, 2007

Corporate goverance making inroads in Nigeria!

In a story that shows the importance of capital markets and governance, the Central Bank of Nigeria is pushing for better corporate governance of banks. Remember that Nigeria wants to grow into one of the top 20 economies by 2020, this is a good start. Nigeria: No Bank Survives Without Good Corporate Governance -CBN (Page 1 of 1):
"The Central Bank of Nigeria (CBN) has restated that no bank would survive, even with large capital base, without good corporate governance practices. ....He further explained that good corporate governance means good management, accountability, adding that good management principles...."


"...the CBN has rules and regulation which stipulate the roles of the chief executive, independent directors, directors, audit committee and the roles of management to ensure good corporate governance....the CBN tried to build these rules, adding that one of such was limitation of state government ownership of banks, as part of measures to avoid huge withdrawal from the bank on the ground that they are owners. He stated that government withdrawal in the past has contributed to the failure of the nation's banks."

and then also:

"...also stated that media on the other hand has the role to play to encourage corporate governance and report those that do not comply"

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