Lagos - Two financial experts have advised the Central Bank of Nigeria (CBN) to strengthen its regulatory framework and enforce corporate governance codes in the financial sector.
They said that weak corporate governance among the banks had prolonged the crisis in the financial system.
According to them, the near absence of corporate governance codes has eroded confidence in the banking industry.
Mr Eddie Osarenkhoe, a former President, Finance Houses Association of Nigeria (FHAN), advised the CBN to take aggressive steps to prevent ownership of a bank by an individual or a group.
“The use of excessive powers by banks’ chief executives can only be checked by the ability of the CBN to effectively enforce corporate governance codes in the banking industry,” he said.
Osarenkhoe also advised the apex bank to strictly enforce the 10-year maximum tenure for banks’ executives.
He also called for stiffer penalties on banks that refused to change their auditors as prescribe by the law.
Mr Wole Olowu, General Manager of True Bond Microfinance Bank Ltd., said that lack of adequate supervision led to the financial crisis in 2008.
He said that the CBN needed to strengthen its supervisory framework and personnel to meet the current challenges in the banking industry.
Olowu advised the CBN to introduce a stronger capacity building programmes for its staff to enable the workers to be ahead of commercial banks workers on contemporary banking issues.
“The effective implementation of CBN policies to improve corporate governance in the financial sector will reduce the pressure in the industry,” he said.