In the banking sector good corporate governance practices are regarded as important in reducing risk for investors, attracting investment capital and improving the performance of companies. This paper examines the Issues and challenges around Corporate Governance in the Nigerian Banking Industry. Data were sourced from survey questionnaire. We found that lack of presentation of information is common banks in pre-consolidation than post-consolidation era, frauds, override of internal control and non-adherence to limit of authority in a bid to meet set targets and recapitalization of bank play a vital role in promoting effective corporate governance. In addition, lack of effective corporate governance results to the failure of banks in Nigeria. The study recommends that promoting the culture of whistle blowing, promoting business ethics through moral education, strengthen the financial system to encourage compliance with the code of corporate governance as well as establishing strong anti-fraud controls that would serve as deterrents to fraudsters at every level within the deposit money banks. On the whole, this paper makes a contribution to the existing literature on the state of corporate governance development in the Nigerian banking sector, the impacts of the banking regulations and the efforts put in place at ensuring that the banks are well governed.