Effects of Information Governance (IG) on Profitability in the Nigerian Banking Sector

Aims: The article provides an overview of the Nigerian banking industry, highlighting its regulation by the Central Bank of Nigeria (CBN) and the role of information governance (IG) in enhancing the industry's robustness. Despite being recognized as one of the top performers in Africa, there are inconsistencies in information governance, particularly in data management.

Place of Study: The case study of Capital One showed that implementing appropriate governance policies could have either entirely mitigated the attack or reduced the time the hackers had unauthorized access, minimizing the attack's impact on the organization.

Methodology: The study employed a mixed-methods approach to explore the feasibility of implementing an Information Governance Framework (IGF) in the financial sector. The quantitative data collected from Nigerian Deposit Insurance Corporation (NDIC), the regulator of banking industry in Nigeria revealed that implementing IG programs is crucial for profitability in the banking industry.

Results: The study concludes that effective IG depends on formalized structures, accountability, privacy, ethics, transparency, monitoring, compliance, and suitability. Therefore, with 95% confidence, it can be stated that IG policies does not contribute to mitigating data breaches in the Nigerian banking industry and improving profitability. The study has shown that financial institutions can utilize information governance to mitigate data breaches and increase profits. While data breaches remain a real threat, banks can leverage IG policies to enhance profitability by safeguarding their assets.

Conclusion: It is concluded that Nigerian banks must remain vigilant and address any changes within their business infrastructure to mitigate risks and protect sensitive data using appropriate IG policies and standards.