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CJN seeks strict corporate governance code for banks

By on November 15, 2013

The Chief Justice of Nigeria, Justice Aloma Mukhtar, on Wednesday called on the regulators of the banking sector to ensure a strict compliance with the corporate governance code.

Mukhtar spoke in Abuja at the 13th seminar on banking and allied matters for judges.

She said the need to ensure a strict regulation became imperative in order to mitigate the challenges that came with having bigger banks.

She said since bigger banks had greater liabilities, having strict regulation would help to improve confidence in the banking sector as well as safeguard the interest of customers.

The conference, which was organised by the Chartered Institute of Bankers of Nigeria in collaboration with the National Judicial Institute, had as its theme, “The role of stakeholders in sustainable banking practice in Nigeria.”

Represented by Justice Mahmud Mohammed, the CJN said the theme was very instructive because both the judiciary and all the stakeholders had enormous roles to play in sustaining the banking sector.

She said, “The importance of the banking industry in the creation of a stable and buoyant economy for the nation cannot be overemphasised.

“The implementation of the various financial and economic reform programmes, especially in the banking sector, will definitely lead to increased litigations involving the banks, their customers and the government.

“The Central Bank of Nigeria needs to implement and enforce strict compliance with the corporate governance code, which was set out with the main objectives of mitigating the challenges that came with having bigger banks with greater liabilities, improving public confidence in the banking sector and safeguarding the interest of customers.”

 

 

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