The importance of efficient banks to the economic development of countries has also been well explored and confirmed in relevant literatures (Mahesh & Rajeev, 2008; Rao & Tiwari, 2008; Shefrin, 2009). These needs have become especially pronounced in recent years as Nigeria continues to encounter significant constraints in the development of its infrastructure during such critical transition periods (Onaolapo, 2008). To bring the nation’s banking sector in line with internationally accepted standards of practice (Somoye, 2008), a great deal remains to be done.
At present, the Nigerian government is pursuing the privatization of the country’s state-operated electricity generation and distribution facilities and is seeking to forge improved public-private partnerships to develop the nation’s transportation infrastructure. Moreover, Nigeria's financial sector has not been immune to the lingering global economic downturn (Pomerantz, 2008), making the need for an efficient banking sector even more important to the progress of the country. As Nigeria pushes to join the international community in more meaningful ways, it is apparent that the Nigerian banking sector will play an increasingly important role in the nation’s economic development and progress.
If business leaders understand the critical role effective internal control plays in the profitable financial performance of their entities, they could use it as a veritable tool for the sustainability of their businesses. This tool would in turn impact positive social change resulting from the effective discharge of their corporate social responsibilities, which includes the provision of social benefits for the communities in which they operate (Berete, 2011). Organizations with good financial performance will become a viable source of tax revenue to the government with its attendant positive implications for the provision of employment and social amenities.