CORPORATE GOVERNANCE AND PERFORMANCE OF SPECIALIZED AND DEPOSIT MONEY BANKS IN NIGERIA

Abstract

Corporate governance is essential to accountability, risk management, and sustainable performance in the banking sector, particularly in Nigeria’s complex financial environment. This study examines the effect of corporate governance mechanisms on the performance of specialized and deposit money banks in Nigeria. Using an empirical research design, the study relies on secondary data from annual reports, audited financial statements, and regulatory publications of selected banks. Data were cleaned, transformed, normalized, and analysed using panel regression techniques, with model validation procedures applied to ensure robustness. Findings indicate that effective corporate governance significantly enhances bank performance by strengthening managerial monitoring, reducing agency conflicts, improving transparency, and supporting risk management. Board independence and audit committee effectiveness positively influence financial performance, while inappropriate governance structures may constrain operational efficiency. The study concludes that governance mechanisms affect specialized and deposit money banks differently. Stronger regulatory enforcement, competent boards, improved disclosure, and institution-specific governance frameworks are recommended for sustainable banking performance.