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Corporate Governance in Nigeria: the status quo

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  • Elewechi N. M. Okike

Abstract

It is generally believed that poor corporate governance has been the Achilles’ heel of many corporations in both rich and poor nations. This is particularly true of Nigeria, where corruption is endemic. However, following the change of government in 1999, the Federal Government is keen to attract foreign investments into the country. Given the high correlation between corporate governance and investor decisions, the government is keen to position the country to take advantage of the opportunities in the global market by adhering to principles of good governance. Yet not much is known about the state of, or the current framework for, corporate governance in Nigeria. By providing a comprehensive review of the state of corporate governance in Africa’s most populous country, this paper makes a contribution to the literature on the state of corporate governance in developing countries. The paper examines the mechanism for corporate governance, including the requirements of the recently established Code of Best Practices for Public Companies in Nigeria. In particular, it examines the roles of the government, the Corporate Affairs Commission, the Securities and Exchange Commission, the Nigerian Stock Exchange, the representatives of the shareholders of the companies, directors, auditors and the Audit Committee in the governance process. The paper addresses the issue of whether the governance mechanisms in Nigeria are adequate in the face of the changes and challenges in the global corporate scene. It argues that whilst there is a case for adherence to global corporate governance standards, any Code of Best Practices adopted in Nigeria must reflect its peculiar socio‐political and economic environment, whilst at the same time providing the right assurance to prospective and existing shareholders.

Suggested Citation

  • Elewechi N. M. Okike, 2007. "Corporate Governance in Nigeria: the status quo," Corporate Governance: An International Review, Wiley Blackwell, vol. 15(2), pages 173-193, March.
  • Handle: RePEc:bla:corgov:v:15:y:2007:i:2:p:173-193
    DOI: 10.1111/j.1467-8683.2007.00553.x
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    1. Venkiteswaran N, 2000. "Corporate Governance for Shareholder Value," IIMA Working Papers WP2000-07-01, Indian Institute of Management Ahmedabad, Research and Publication Department.
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    Cited by:

    1. Emmanuel Adegbite & Kenneth Amaeshi & Olufemi Amao, 2012. "The Politics of Shareholder Activism in Nigeria," Journal of Business Ethics, Springer, vol. 105(3), pages 389-402, February.
    2. Mutarindwa, Samuel & Schäfer, Dorothea & Stephan, Andreas, 2020. "Central banks' supervisory guidance on corporate governance and bank stability: Evidence from African countries," Emerging Markets Review, Elsevier, vol. 43(C).
    3. Gberevbie Daniel Eseme, 2012. "Impact of Human Resource Development and Organizational Commitment on Financial Sector Employees in Nigeria," Scientific Annals of Economics and Business, Sciendo, vol. 59(2), pages 29-41, December.
    4. Araniyar C. Isukul & John J. Chizea, 2017. "Corporate Governance Disclosure in Developing Countries: A Comparative Analysis in Nigerian and South African Banks," SAGE Open, , vol. 7(3), pages 21582440177, July.
    5. Robert W. Odewale & Hasnah Kamardin, 2015. "Directors’ Remuneration Disclosure Transparency in Nigeria and the Influence of Block Share Ownership," International Journal of Business and Social Research, LAR Center Press, vol. 5(8), pages 65-78, August.
    6. Araniyar C. Isukul & John J. Chizea, 2015. "Environmental Factors Influencing Corporate Governance," SAGE Open, , vol. 5(2), pages 21582440155, May.
    7. Kenneth Amaeshi & Emmanuel Adegbite & Tazeeb Rajwani, 2016. "Corporate Social Responsibility in Challenging and Non-enabling Institutional Contexts: Do Institutional Voids matter?," Journal of Business Ethics, Springer, vol. 134(1), pages 135-153, March.
    8. Adegbite, Emmanuel & Amaeshi, Kenneth & Nakajima, Chizu, 2013. "Multiple influences on corporate governance practice in Nigeria: Agents, strategies and implications," International Business Review, Elsevier, vol. 22(3), pages 524-538.
    9. Hearn, Bruce, 2013. "The impact of board governance on director compensation in West African IPO firms," Research in International Business and Finance, Elsevier, vol. 28(C), pages 82-104.
    10. Nobert Osemeke & Louis Osemeke, 2017. "The effect of culture on corporate governance practices in Nigeria," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 14(4), pages 318-340, November.
    11. Ozili, Peterson K, 2020. "Corporate governance research in Nigeria: a review," MPRA Paper 98217, University Library of Munich, Germany.
    12. Olufemi Amao & Kenneth Amaeshi, 2008. "Galvanising Shareholder Activism: A Prerequisite for Effective Corporate Governance and Accountability in Nigeria," Journal of Business Ethics, Springer, vol. 82(1), pages 119-130, September.
    13. Louise Osemeke & Emmanuel Adegbite, 2016. "Regulatory Multiplicity and Conflict: Towards a Combined Code on Corporate Governance in Nigeria," Journal of Business Ethics, Springer, vol. 133(3), pages 431-451, February.
    14. Nobert Osemeke & Louis Osemeke, 2017. "The role of auditors in the context of Nigerian environment," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 14(4), pages 299-317, November.
    15. Seyed Alireza Athari, 2021. "The effects of institutional settings and risks on bank dividend policy in an emerging market: Evidence from Tobit model," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(3), pages 4493-4515, July.
    16. Peterson K. Ozili, 2021. "Corporate governance research in Nigeria: a review," SN Business & Economics, Springer, vol. 1(1), pages 1-32, January.
    17. Adegbite, Emmanuel, 2015. "Good corporate governance in Nigeria: Antecedents, propositions and peculiarities," International Business Review, Elsevier, vol. 24(2), pages 319-330.
    18. Robert W. Odewale & Hasnah Kamardin, 2015. "Directors’ Remuneration Disclosure Transparency in Nigeria and the Influence of Block Share Ownership," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 5(8), pages 65-78, August.
    19. Anubha Srivastava & Preeti Kulshrestha, 2021. "Ind-AS Enforcement in India: An Assessment of Readiness, Benefits and Key Challenges," Paradigm, , vol. 25(1), pages 25-41, June.
    20. Mohammad Nurunnabi & Monirul Alam Hossain & Saad A. Al-Mosa, 2016. "Ceci n'est pas une pipe! Corporate Governance practices under two political regimes in Bangladesh: A political economy perspective," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 13(4), pages 329-363, November.
    21. Samuel Mutarindwa & Dorothea Schäfer & Andreas Stephan, 2018. "The Impact of Institutions on Bank Governance and Stability: Evidence from African Countries," Discussion Papers of DIW Berlin 1739, DIW Berlin, German Institute for Economic Research.

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