Abstract
One essential component and the pinnacle of sound corporate governance is the selection of
independent directors. They are essential in bank's board in order to prevent corporate scandals
like the ones involving Worldcom and Eron, among others. Even before formal rules to that effect
were introduced, codes in Nigeria emphasized the value of independent directors. However, the
crucial question has been whether they contribute in any way to the advancement of sound
corporate governance in banks. It is argued that the fact that banks and companies are now vying
for independent directors is a clear indication of the value that these individuals bring to the banks.
By providing the board of directors with independent and objective viewpoints, they are supposed
to reflect the interests of minority shareholders and serve as a check on the banks' management.
It is suggested that the teething issues of appointment process, industry experience, available time,
and tenure on the board must be addressed immediately in order for the independent director to
fulfill its duties to the banks.