Abstract

<p>In Nigeria, there are a number of factors that constitute fundamental constraints to efficient employment generation among the teeming and unemployed youth, and the objectives of employment policies mostly in the banking sector have been marred by lack of good corporate governance. The main purpose of this study is to ascertain the nexus between corporate governance and unemployment in the Nigerian banking sector. The data for the study was sourced from the Central Bank of Nigeria statistical bulletin, National Bureau of Statistics and Nigerian Stock Exchange. The annual rate of unemployment was used as the dependent variable while various indices of corporate governance were used as independent variables. The bound testing approach indicates that a long run relationship exists among the variables in the estimated model. The study recommends among other things that; the development of any nation is tied to the quantum of youth that are gainfully engaged in productive activities to create goods and services that satisfies human wants, thereby reducing the number of industrious young men and women that wallows in poverty and misery. Hence, the inculcation of good corporate governance in the day-to-day activities of firms is identified as a surest way for countries especially developing economies to sustain the level of employment in the banking system. There should be transparency in the implementation of codes of corporate governance so that the stakeholders including employees can effectively judge whether their interests are being served or not, and the government should establish institute of Corporate Governance for teaching and promoting good corporate governance that will obl1ige firms to embrace corporate social responsibilities through the employment of indigenous job seekers thereby reducing the army of unemployed youth in the country.</p>