Governance Structures and Performance of Deposit Money Banks: A Nigerian Perspective
The stability and profitability of banks are critical to the overall health of the financial system. However, corporate governance challenges, including ineffective board structures and weak oversight mechanisms, continue to undermine bank performance in Nigeria. This study investigates the effect of corporate governance on financial performance of quoted banks in Nigeria between 2010 and 2021. It uses secondary data from the annual reports of ten banks on the Nigerian Exchange Group (NGX) and adopts an ex-post-facto research design. Panel least squares regression was employed as estimating techniques. The results show that board size and audit committee have positive but statistically insignificant effects on ROA, while board composition exhibits a negative and insignificant effect. The study concludes that corporate governance structures, as currently implemented, have limited influence on the performance of listed DMBs in Nigeria. Therefore, this study recommends that regulatory authorities and bank management should ensure that corporate governance codes are not only adhered to in form but also implemented in practice, with clear accountability mechanisms.
Alayande, I. T., & John, S. A. (2026). Governance Structures and Performance of Deposit Money Banks: A Nigerian Perspective. International Journal of Global Humanities and Management Insights (IJGHMI), 2(2), 66–75. https://doi.org/10.63665/ijghmi-y2f2a007
This study concludes that while corporate governance structures are important, their presence alone may not guarantee improved bank performance. In other words, the effectiveness of governance mechanisms in enhancing bank performance may depend more on the quality of implementation and active engagement rather than simply the structural presence of committees or board members. Therefore, this study recommends that banks should focus on Publication: Idayat Titilayo Alayande & Stephen Alaba John, Volume 2, Issue 2 (Apr-Jun, 2026), 66-75, IJGHMI. improving the functionality of audit committees by ensuring regular meetings, proper training of members and active oversight of financial reporting to strengthen their monitoring role which may possibly translate to better performance; banks should aim for an optimal board size that promotes effective decision-making, active participation and coordination among directors; and banks should emphasize the quality and engagement of independent and non-executive directors to ensure that their roles go beyond formal presence to active contribution in strategic decisions and stakeholder management.
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