Code of corporate governance for prevention of corporate frauds in Nigerian banking sector
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Date
2022
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Faculty of Law, Obafemi Awolowo University, Ile-Ife, Nigeria.
Abstract
The study examined the conceptual foundations of Company Law in Nigerian. It also analysed the development of corporate governance in Nigeria and analysed the adequacy and effectiveness of the existing codes of corporate governance. It also discussed the development of banking industry in Nigeria with emphasis on increasing frauds in the sector. This was with a view to determining the status of the existing codes of corporate governance, their effectiveness, and the extent to which they have been enforced. The study relied on primary and secondary sources of information. The primary source included the Companies and Allied Matters Act Cap, C20, LFN 2004, the Banks and Other Financial Institutions Act 1991, the Investments and Securities Act 2007, the Securities and Exchange Commission Act, Central Bank of Nigeria Act Cap C20 2004, Code of Corporate Governance for Banks and Other Financial Institution in Nigeria, 2003, Code of Corporate Governance for Banks and Discount Houses in Nigeria 2014, Case laws and Judicial decisions. The secondary source included books, journal articles and the Internet. The information obtained from these sources was subjected to data analysis. The results showed that serious corporate governance practice in Nigeria started in 1987 with “Report” presented by “the Law Reform Commission” which reviewed the “the Companies Act, 1968”, repealed and replaced it with “the Company and Allied Matters Act, 1990” (now LFN Cap, C20, 2004), which laid foundations for other reforms such as recapitalization and post establishment of AMCON 2004 to 2009 consolidation in the sector. The study also found that serious developments in Nigerian banking sector started in 1952 with promulgation of legislation known as “Banking Ordinance” and Central Bank Ordinance in 1958 to 1959; and as a result of improved technology. The study further revealed that the sector has migrated from manual telectronic banking and connected to World Wide Web (WWW) systems with all the incidental matters which greatly exposed the sector to incessant frauds and fraudsters updates their techniques and adopt more complicated, sophisticated and less identifiable method in carrying out their fraudulent activities. The study finally revealed that there are multiple codes of corporate governance in Nigeria some of which were industrial specific but three of the codes were specifically issued to regulate the banking sector.
The study concluded that as a result of inadequate and ineffective enforcement of existing codes, fraudulent activities in the Nigeria banking sector has not been totally curbed. It also concluded that the existing codes of corporate governance will advance useful proportions for the review of the extant law which they have been enforced
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Citation
ADIMOHA C .A (2022) CODE OF CORPORATE GOVERNANCE FOR PREVENTION OF CORPORATE FRAUDS IN NIGERIAN BANKING SECTOR ; FACULTY OF LAW , OBAFEMI AWOLOWO UNIVERSITY, ILE-IFE, NIGERIA.