This study examined the relationship between corporate governance practices in Nigerian Deposit Money Banks (DMBs) vis-à-vis their financial performances (2002-06). To accomplish this, data were collected through the use of questionnaire administered to Corporate Affairs Managers in twenty-four Deposit Money Banks (DMBs) and from the Central Bank of Nigeria (CBN) annual report and statement of accounts and Nigeria Stock Exchange (NSE) Fact Books. The data was descriptively and quantitatively analysed and the hypotheses tested using Statistical Package for Social Sciences (SPSS). The regression result of our analysis and test indicated a significant relationship and positive correlation between corporate governance and banks' performance. It is therefore recommended, among others, that Deposit Money Banks (DMBs) in conjunction with the regulatory authorities should model various functions performed by banks and factor in all aspect of corporate governance variables as it may concern a highly regulated industry like the banking industry. This will go a long way in the designing of an optimal governance mechanism for the Deposit Money Banks (DMBs) in Nigeria and beyond.
