CBN chief stresses importance of corporate governance to financial sector

DEPUTY GOVERNOR of the Central Bank of Nigeria (CBN), Dr. Joseph Nnanna, has said that the introduction of  Corporate Governance is to bring out the best in the financial sector by acting locally and thinking globally.

He made this disclosure as the guest speaker at the 2015 Annual Conference on Corporate Governance and 10th Anniversary celebration of the Society for Corporate Governance in Lagos.

The CBN Deputy Governor also stated that current global economy trend has made it necessary  for the apex bank to change its policy often in order to meet up with certain economic developments and  reality.

He added that financial institutions in the country cannot meet up with global practice without strict adherence to corporate governance

Speaking on the topic: The impact of Corporate Governance: The Nigerian Case, Nnanna, went further to define and explain what Corporate Governance entails.

According to him, corporate governance is the system by which business corporations are directed and controlled.

“It is about holding the balance between economic and social goals and between individual and communal goals.
The aim is to align as nearly as possible the interests of individuals, corporations and society,” he added.

On the present state of the apex bank, Nnanna revealed that the CBN, as constituted at present has responsibility for the monetary policy of the government, as well as regulating the activities of other  banks, in such a manner that they remain within the rules set by the CBN.

As part of  CBN governor’s responsibilities, Nnanna  stated that it is to ensure that adequate corporate governance structures exist within the individual banks such that it will make it impossible for their CEOs to run up massive debts, which may imperil depositors’ funds.

Other issues that emanated also included the mortality rate of family businesses , the role of Corporate Governance in creating awareness on the need to adhere to laws to overcome this trend and the need to include ethics and governance in the university curricular either at degree or post graduate level.

The Chairman , Chief Olusegun Osunkeye, in his opening remarks, had highlighted the importance of corporate governance in Nigeria and its implications for the larger national economy.

Other speakers included, the Dean, Lagos Business School, Dr. Enase Okonedo and Chief Executive Officer (CEO), Computer Warehouse Group, Austin Okere among others.