The Chartered Institute of Directors (CIoD) of Nigeria has reminded the federal and state governments that sound corporate governance has become indispensable, serving as the foundation for sustainable growth, resilience, and long-term success.
Speaking at its bi-annual State of Corporate Governance press conference, the President and Chairman of Council of the Institute, Mr Otunba Oyebanji, advised that governance should not be viewed as a compliance exercise but as a strategic enabler of economic growth, public trust, responsible leadership and sustainable development.
Presenting the first edition of the Governance Health Check and State of Corporate Governance in Nigeria, with the theme, Tracking Governance, Strengthening Institutions, Enhancing Competitiveness, the president explained that, across the world, governance has become the determining factor for sustainable growth, investor confidence, institutional resilience and national competitiveness.
From his presentation, titled Nigerian Diagnosis – H1 2026 Scorecard, the data showed clear areas of institutional vulnerability. On the global AI governance gap, the current metric showed that 66 per cent of directors utilise AI, only 22 per cent govern it, while only 10 per cent use AI to manage risk complexity.
On the Corruption Perceptions Index (CPI), Nigeria is ranked 142nd out of 182 countries, with a score of 26/100, below the Sub-Saharan African average.
On NGX compliance enforcement, the investigation revealed that 32 listed firms were fined a collective N562.6 million for financial filing lapses.
On the family business failure rate, 70 per cent of African family businesses collapse before reaching the second generation.
In a nutshell, the report confirmed that Nigeria’s corporate governance landscape stands at a critical inflection point. While global governance frameworks continue to evolve and African institutions, particularly South Africa’s King V Code, are raising the bar on oversight standards, Nigeria faces a paradox: its regulatory environment is tightening, yet implementation and enforcement remain fragmented.
“Amid the current global realities, one truth stands out: strong governance is no longer a competitive advantage; it is a prerequisite for long-term success. Nigeria is not without governance frameworks. We have established codes, regulatory institutions, and legal provisions that compete favourably with global standards.
“Yet our greatest challenge has never been the absence of policies; it has been the consistency of implementation, the strength of enforcement, and the collective commitment to accountability. We are identifying practical pathways to strengthen governance in both the public and private sectors.”
He noted that CIoD’s intention is not to apportion blame but to stimulate informed dialogue, encourage institutional reforms and inspire collective action.
Addressing policymakers and regulators, CIoD encouraged them to insulate anti-corruption leadership, enforce the Public Sector Governance Code and establish a regulatory harmonisation mechanism. For corporate boards and organisations, the Institute advocated the institutionalisation of technology oversight, refreshing board composition based on evaluation results, integrating ESG into core strategy and mandating executive succession plans.
Oyebanji assured stakeholders that the Institute remains steadfast in its commitment to promoting world-class corporate governance, developing ethical and competent directors, and supporting reforms that strengthen institutions and create long-term value for Nigeria.
He explained that corporate governance is not a bureaucratic burden but a competitive weapon. He noted that markets and nations that build transparent and resilient institutions will attract global capital, while those that maintain opaque and fragmented systems risk severe capital shortages.
“The Chartered Institute of Directors Nigeria remains committed to equipping leaders with the knowledge and competencies required to govern effectively. Let us join hands to move governance in Nigeria from aspiration to execution, from policy to practice, and from rhetoric to measurable results,” he implored.
On his part, the Director General and Chief Executive Officer of the Institute, Taiwo Nolas-Alausa, added that governance is no longer an option but the foundation of sustainable national and economic prosperity.
With the report on the Governance Health Check of the Nation, the DG confirmed encouraging progress, while also identifying significant gaps in public sector governance, board effectiveness, cybersecurity, artificial intelligence oversight, sustainability reporting and institutional accountability.
“Around the world, strong governance is increasingly becoming the gateway to investment, innovation, competitiveness, and public trust. Nations and organisations that embrace transparency, accountability, and responsible leadership will thrive. Those who delay risk being left behind. We therefore, calls on every stakeholder to move beyond discussion to decisive action.
“To government and regulators, we urge the accelerated implementation and effective enforcement of governance reforms, particularly the Nigerian Public Sector Governance Code, while ensuring merit-based appointments and stronger institutional oversight.
“To corporate boards and business leaders, we encourage you to strengthen board effectiveness, embrace AI and cybersecurity governance, integrate ESG into corporate strategy, and view governance not merely as a compliance obligation but as a strategic advantage.
“To investors, professional bodies, civil society, and the media, we ask that you continue to champion accountability, reward good governance, and hold institutions to the highest standards of transparency and integrity.
“To our members, you remain the ambassadors of ethical leadership. Through our training, advocacy, research, and governance support initiatives, CIoD Nigeria will continue to equip directors with the knowledge and tools required to lead organisations responsibly in an increasingly complex world.”
Nolas-Alausa urged corporate leaders to initiate conversations aimed at strengthening their governance frameworks. He expressed confidence that small but deliberate actions, taken collectively, would transform institutions and Nigeria as a whole.
(The Sun)