Corporate Governance Practices in Nigeria

  • Chris OgbechieEmail author
  • Dimitrios N. Koufopoulos
Part of the CSR, Sustainability, Ethics & Governance book series (CSEG)


Recent global happenings regarding high-profile corporate failures have put back on the agenda and intensified debate on corporate governance and board practices. Business regulatory agencies in many countries – Nigeria specifically – have responded by enacting governance codes as a means of better oversight and to align with international best practice. In Nigeria, there are three main codes that cover mostly public and private business organizations.

The authors in their research found that Nigerian companies have been compliant with these codes on structural factors. As regards the process factors, more needs to be done specifically in board evaluation and the quality of directors.

It is recommended that there should be a harmonization of all the codes so that the same set of rules and regulations can be used to evaluate companies irrespective of industry. In addition, the culture promoting whistle blowing in firms should be encouraged.


Corporate Governance Audit Committee Board Size Board Independence Board Diversity 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


  1. Adekoya, A. (2011). Corporate governance reforms in Nigeria: Challenges and suggested solutions. Journal of Business Systems, Governance and Ethics, 6(1), 38–50.Google Scholar
  2. Ahmed, M. (2007, March 30). Corporate governance: A new fad or an important development prerequisite? Paper presented at British Council’s Management Express Forum, Calabar, Nigeria. Calabar: British Council.Google Scholar
  3. Akindele, F., & Adegbite, W. (1992). The sociology and politics of English in Nigeria: An introduction. Ile-Ife: OAU Press.Google Scholar
  4. Amaeshi, K., Adi, B. C., Ogbechie, C., & Amao, O. O. (2006). Corporate social responsibility in Nigeria: Indigenous practices or Western influences? Journal of Corporate Citizenship, 24(39), 83–99.CrossRefGoogle Scholar
  5. Amao, O., & Amaeshi, K. (2008). Galvanising shareholder activism: A prerequisite for effective corporate governance. Journal of Business Ethics, 82(1), 119–130.CrossRefGoogle Scholar
  6. Azmi, I. A. G., & Barrett, M. A. (2013). Women on boards and company financial performance: A study of Malaysian SMEs. In Proceedings of 3rd global accounting, finance and economics conference, Melbourne, Australia.Google Scholar
  7. Central Bank of Nigeria. (2006). Code of corporate governance for banks in Nigeria post-consolidation. Abuja: CBN Publications.Google Scholar
  8. Barton, D., & Wong, S. C. Y. (2006). Improving board performance in emerging markets. The McKinsey Quarterly, 1, 35–43.Google Scholar
  9. Boswell, N. Z. (2013). Ethics in a global economy: ‘Code red’ bribery and corruption in the world. Drake Management Review, 2(2), 1–7.Google Scholar
  10. Dabor, E. L., & Adeyemi, S. B. (2009). Corporate governance and credibility of financial statements in Nigeria. Journal of Business Systems, Governance and Ethics, 4(1), 13–24.Google Scholar
  11. Doing Business. (2012). Doing business 2012: Doing business in a more transparent world. Washington, DC: The International Bank for Reconstruction and Development/The World Bank Publishers.
  12. Dornyei, Z. (2003). Questionnaires in second language research: Construction, administration and processing. New Jersey: Lawrence Erlbaum Associates.Google Scholar
  13. Ettah, L. (2008). Governance, size, and diversity: Multiple roles of boards. Annual conference of the Institute of Chartered Secretaries and Administrators of Nigeria (ICSAN). Lagos: ICSAN publication. [Online] Available at: Accessed 6 Mar 2013.
  14. Fama, E. F., & Jensen, M. C. (1983). Separation of ownership and control. Journal of Law and Economics, 26(2), 301–325.CrossRefGoogle Scholar
  15. Finkelstein, S., & Mooney, A. C. (2003). Not the usual suspects: How to use the board process to make boards better. Academy of Management Executive, 17(2), 101–113.CrossRefGoogle Scholar
  16. Forbes, D. P., & Milliken, F. J. (1999). Cognition and corporate governance: Understanding boards of directors as strategic decision-making groups. Academy of Management Review, 24(3), 489–505.Google Scholar
  17. Gladman, K., & Lamb, M. (2013). GMI ratings’ 2013 women on Boards survey. [Report] GMI ratings. Retrieved from: Accessed 10 July 2013.
  18. Guobadia, A. (2000). Protecting minority and public interests in Nigeria company law: The Corporate Affairs Commission as a corporation’s ombudsman. In F. McMillan (Ed.), International Company Law Annual (pp. 1–81). Oxford/Portland: Hart Publishing.Google Scholar
  19. Haliru, T. (2012). Ethnicity and political violence in Nigeria: Challenges of democratic governance. Journal of Research in Peace, Gender and Development, 2(4), 89–94.Google Scholar
  20. Holbrook, A., Cho, Y. I., & Johnson, T. (2006). The impact of question and respondent characteristics on comprehension and mapping difficulties. Public Opinion, 70(4), 565–595.CrossRefGoogle Scholar
  21. Iarossi, G., Mousley, P., & Radwan, I. (2009). Private sector development: An assessment of the investment climate in Nigeria. Washington, DC: The International Bank for Reconstruction and Development/The World Bank.CrossRefGoogle Scholar
  22. Joshua, S. (2013). Democracy and violent conflicts in Nigeria: Implications for national development. An International Multidisciplinary Journal, 7(3), 324–339.Google Scholar
  23. Lehobo, L. (2011). The relationship between gender diversity and corporate profitability: The top 100 companies on the JSE Ltd. (Master’s Thesis), University of Johannesburg. Accessed at
  24. Leitz, P. (2008). Questionnaire design in attitude and opinion research: Current state of an art. Technical report number: For 655, Jacobs University Bremen.Google Scholar
  25. Martin, E., (2006). Survey questionnaire construction. Research report series (Survey Methodology #2006–13), Washington, DC: U.S. Census Bureau.Google Scholar
  26. National Insurance Commission Code. (2009). Code of corporate governance for insurance companies in Nigeria. Abuja: NAICOM Publications.Google Scholar
  27. National Planning Commission. (2004). National Economic Empowerment and Development Strategy (NEEDS). Abuja: Communications Development Incorporated. Available at: Accessed 6 Apr 2013.
  28. Oduh, M. O., & Oduh, M. O. (2012). Homogenous Economic policy and heterogeneous consumer economy: Empirical analysis of the vulnerability of the regions to macroeconomic policy in Nigeria. European Journal of Business and Management, 4(14), 129–138.Google Scholar
  29. Ogbechie, C. (2012). Key determinants of effective boards of directors: Evidence from Nigeria. Ph.D. thesis, Brunel Business School, Brunel University.Google Scholar
  30. Ogbechie, C., & Koufopoulous, D. N. (2007). Corporate governance practices in publicly quoted companies in Nigeria. International Journal of Business Governance and Ethics, 3(4), 350–381.CrossRefGoogle Scholar
  31. Okike, E. N. M. (2007). Corporate governance in Nigeria: The status quo. Corporate Governance, 15(2), 173–193.CrossRefGoogle Scholar
  32. Olofin, A. O. (2012). Effects of English language on national development. Greener Journal of Social Sciences, 2(4), 134–139.Google Scholar
  33. Olokor, F. (2013, July 26). Nigeria’s global GDP ranking now 36th – Jonathan. Punch [online]. Available at: Accessed 26 July 2013.
  34. Olusa, M. (2007). Corporate governance vs. Cadbury Nigeria. Guardian [online]. Available at: Accessed 10 Feb 2013.
  35. Omoh, G. (2013). FG inaugurates committee on code of corporate governance. Punch [online]. Retrieved at: Accessed 11 Mar 2013.
  36. Onapajo, H. (2012). Politics for God: Religion, politics and conflict in democratic Nigeria. The Journal of Pan African Studies, 4(9), 42–66.Google Scholar
  37. Onyema, O. (2012). The stock exchange as a financing option for long-term business expansion. Paper presented at Academy for Entrepreneurial Studies (AES) Excellence Club meeting, Lagos. Accessed at:
  38. Organization for Economic Co-operation and Development [OECD]. (2008). African economic outlook: Nigeria [online]. Available at: Accessed 6 Apr 2013.
  39. Pande, R., & Ford, D. (2011). Gender quotas and female leadership: A review. Background paper for the world development report on gender. Retrieved at: Accessed 16 July 2013.
  40. Pearce, J., & Zahra, S. (1992). Board composition from a strategic contingency perspective. Journal of Management Studies, 29(4), 411–438.CrossRefGoogle Scholar
  41. Pye, A., & Pettigrew, A. (2005). Studying board context, process and dynamics: Some challenges for the future. British Journal of Management, 16, S27–S38.CrossRefGoogle Scholar
  42. Roberts, J. T., Mc Nulty, P., & Stiles, P. (2005). Beyond agency conceptions of the work of the non-executive directors: Creating accountability in the boardroom. British Journal of Management, 16(1), S5–S6.CrossRefGoogle Scholar
  43. Roe, M. J. (2003). Political determinations of corporate governance: Political context, corporate impact. Oxford: Oxford University Press.Google Scholar
  44. Saheed, Z. S. (2012). Impact of social crises on economic development: Theoretical evidence from Nigeria. American International Journal of Contemporary Research, 2(6), 176–184.Google Scholar
  45. Salawu, B. (2010). Ethno-religious conflict in Nigeria: Causal analysis and proposals for new management strategies. European Journal of Social Sciences, 13(3), 345–353.Google Scholar
  46. SEC Code. (2011). Security and Exchange Commission revised code of corporate governance for public listed companies in the Nigerian Stock Exchange. Retrieved at: Accessed 11 Mar 2013.
  47. Stiles, P. (2001). The Impact of the board on strategy: An empirical examination. Journal of Management Studies, 38(5), 627–650.CrossRefGoogle Scholar
  48. Stiles, P., & Taylor, B. (2001). Boards at work: How directors view their roles and responsibilities: How directors view their roles and responsibilities. Oxford: Oxford University Press.Google Scholar
  49. United Nations Development Programme [UNDP]. (2010). The real wealth of nations: Pathways to human development (UNDP Report). Retrieved at: Accessed 17 Sept 2012.
  50. Watson, E., Kumar, K., & Michaelsen, L. (1993). Cultural diversity’s impact on interaction process and performance: Comparing homogeneous and diverse task groups. Academy of Management Journal, 36, 590–603.CrossRefGoogle Scholar
  51. Wilson, I. (2006). Regulatory and institutional challenges of corporate governance in Nigeria post – Banking consolidation. [Online] Nigerian Economic Summit Group (NESG) Economic Indicators, 12(2), 1–10. Available at: Accessed 7 Feb 2013.

Copyright information

© Springer-Verlag Berlin Heidelberg 2014

Authors and Affiliations

  1. 1.Strategy department, Lagos Business SchoolPan-Atlantic UniversityLagosNigeria
  2. 2.Strategy department, Strathmore Business SchoolStrathmore UniversityNairobiKenya
  3. 3.Strategy department, Brunel Business SchoolUxbridgeUK

Personalised recommendations