Conceptual Framework for Corporate Governance in Nigeria - Challenges and Panaceas

Abstract

This research paper reviews the conceptual framework of corporate governance in Nigeria and seeks to understand current best practice, the challenges, the failure and offered policy recommendations as panaceas for efficient implementation of empirically validated international corporate governance best practice in Nigeria. This paper identified the underdeveloped nature of the Nigerian economy as a major obstacle to efficient functioning of corporate governance. Legally binding shareholders’ rights are undermined, members of board of directors are randomly handpicked from a pool of cronies and there is complete lack of transparency and disclosure in the system. The existence of institutional regulatory framework in Nigeria is constrained with lack of enforcement mechanism to properly implement laws and regulations on corporate governance best practice. Lessons learned are difficult to document for future reference which complicate resources allocation from the surplus areas of enforcement to deficit areas in the implementation process.