The Managing Director, Nigeria Deposit Insurance Corporation ( NDIC ), Alhaji Umaru Ibrahim, has urged stakeholders in the banking sector to pay greater attention to sound corporate governance practices.

The call is contained in a statement issued by the Head, Communications and Public Relations of NDIC, Mr Hadi Birchi, in Abuja on Sunday.

It said Ibrahim made the call in an address at the 2015 Executive Breakfast Meeting of the Society for Corporate Governance, Nigeria.

He identified the failure of sound corporate governance as one of the factors responsible for the 2009 Nigerian banking crisis.

He recalled the examination conducted on 24 Nigeria banks by the Central Bank of Nigeria (CBN) and NDIC which revealed that 10 of the banks were critically distressed by poor corporate governance.

Ibrahim said: β€œThe special examination revealed that boards and executive managements in some banks were not equipped to run their institutions.

β€˜’ Their ineffectiveness manifested in the form of overbearing influence of some board members, ineffectiveness of board committees; non-adherence to the CBN code of corporate governance and weak ethical standards amongst others.’’

He emphasised that the problems of the banks informed the comprehensive reform embarked upon by CBN, which emphasised enhanced quality of banks, financial stability and ensured that the financial sector contributed to the real economy.

He stressed the need for more stringent sanctions to serve as deterrent to irresponsible and greedy behaviours.

Ibrahim said NDIC had adopted a charter and code of corporate governance for the board as one of the initiatives to promote sound corporate governance.