joseph o sanusi : embracing good corporate governance practices in nigeria keynote address by dr joseph o sanusi, governor of the central bank of nigeria, at the 19th annual directors ’ seminar organised by the financial institutions training centre ( fitc ), abuja, 17 - 19 june 2003. * * * the director general, financial institutions training centre ( fitc ), chairmen and members of board of financial institutions, chief executives of banks, captains of industry, distinguished ladies and gentlemen. i feel deeply honoured to be invited to this important seminar, as the special guest of honour and for the privilege to deliver this keynote address. i should also start by congratulating the financial institutions training centre ( fitc ), which has put this seminar together, for its impressive contribution to capacity building in the financial services sector. the theme for the 2003 annual directors ’ seminar : “ balancing stakeholders interests : issues and challenges ” is quite relevant and timely, given the havoc which poor governance has wreaked on the corporate existence of many institutions and the failure on the part of many banks to uphold the tenets of good corporate governance. moreover, when placed in its proper perspective, the theme of the seminar to my mind, calls for the enhancement of standards and adoption of sound corporate governance practices by banks and their corporate customers. in this context, i will like to congratulate the management of the fitc for coming up with this discourse, which i believe would enhance participants ’ awareness of the various challenges facing the board / management of institutions in the discharge of their statutory responsibilities to their various stakeholders. perhaps, i should observe at this juncture that the role of the fitc in providing quality human development and advisory services to its clientele has not gone unnoticed, which explains the high calibre of participation at this seminar. i will like to urge the management of the institution to sustain and, improve on that legacy that has been the hallmark of the centre so that it will continue to attract top management in its future programmes. judging from its antecedents, i have no doubt in my mind that the fitc have assembled a formidable team of experts to present the seminar papers that would explore the different dimensions of the seminar theme. distinguished participants, let me caution that there is no one single factor that contributes to institutional problems than the lack of effective governance. the issue of good governance is, therefore, an imperative for ensuring successful corporate performance. building good corporate governance is a shared responsibility among all stakeholders,

most valuable assets are public trust and confidence. therefore, we should always do whatever it takes to jealously guard it. we need to learn from recent encounters with financial sector crises, the recurrence of which we should do our utmost to prevent. we also need to draw some lessons from the global events, particularly from the asian and latin american financial crisis of the 1990s and the more recent wave of corporate financial scandals such as the collapse of enron, world com and a slew of others, and change the way we do things in nigeria. the world has become a global village, thus we have no choice other than to conform with international best practices. balancing stakeholders ’ interests and embracing good corporate governance practices are the prerequisites for attracting the much - needed foreign investment inflows that will help put the country back on the path of sustainable economic growth and poverty reduction. it is noteworthy that the bankers ’ committee has taken up the challenge for ensuring high standard of behaviour, through the establishment of a code of ethics and professionalism in banking with a sub - committee for its enforcement. finally, distinguished participants, i am optimistic that you have a lot to gain by attending this seminar. i believe that the experts that have been assembled to handle the various sub - themes will do justice to them and will, in the process, also comprehensively address some of the issues raised in this keynote address and come up with recommendations that are implementable. mr. chairman, ladies and gentlemen, i have the honour and privilege to declare this seminar open. thank you for your attention.