The Chartered Institute of Directors (CIoD) Nigeria has warned that weak governance, inconsistent regulations, and poor compliance with contracts and court orders could undermine Nigeria's ambition to build a $1 trillion economy. According to the institute, achieving the target would require greater regulatory certainty, respect for the rule of law, and stronger corporate governance to give businesses and investors the confidence to commit long-term capital. This was stated by President and Chairman of the Governing Council, CIoD Nigeria, Adetunji Oyebanji, at a press conference in Lagos.
Oyebanji emphasized that governance is central to the $1 trillion economic ambition, as businesses cannot make long-term investment decisions in an environment where laws and regulations are unpredictable or contractual and court obligations are not respected. He highlighted that governance speaks to consistency, the rule of law, doing things right, and obeying court orders. The CIoD president also linked good corporate governance to access to finance, saying banks and other financial institutions increasingly require evidence of sound governance before extending credit to businesses.
A properly constituted board can bring independent expertise, challenge management decisions, and strengthen the credibility of a company seeking capital. Oyebanji noted that the governance challenge is particularly significant for small and medium-sized enterprises (SMEs), many of which begin with decision-making concentrated in one individual but face greater risks as they expand. He added that situations where the owner simultaneously acts as manager and accountant might be workable at the early stage of a business but could become a major governance weakness as the enterprise grows.
Oyebanji stated that stronger governance structures would help businesses institutionalize decision-making, improve accountability, and position them to attract the capital required for expansion. He also emphasized that boards must broaden their oversight beyond immediate financial returns, as artificial intelligence (AI), technological disruption, sustainability pressures, and changing global investment patterns reshape business risks. These developments require directors to continually reassess how they provide leadership, oversight, and strategic direction.
The CIoD president's comments come ahead of the institute's 2026 yearly directors' conference, themed 'Reimagining the Boardroom for Inclusive and Sustainable National Prosperity in the New Economy.' The conference, scheduled for November 10 and 11 at the Lagos Oriental Hotel, will bring together directors, business leaders, policymakers, entrepreneurs, and other stakeholders. The program aims to move discussions beyond conventional boardroom concerns and examine how directors can contribute to value creation, collaboration, and inclusion in pursuit of sustainable economic growth.
Chairman of the conference's National Organising Committee, Dr. Waheed Olagunju, disclosed that the conference will examine contemporary challenges facing boardrooms, including board accountability in the age of AI, strategic competitiveness, entrepreneurial growth, access to capital, and corporate conduct. The conference will also feature a Business Meets Government Dinner focused on the governance and financing requirements for the $1 trillion economic ambition.
The conference aims to provide a platform for stakeholders to discuss the governance and financing requirements for achieving Nigeria's $1 trillion economy target. With the country's economy facing significant challenges, the conference is expected to provide valuable insights and recommendations for businesses, policymakers, and other stakeholders. The event will provide a unique opportunity for directors, business leaders, and policymakers to come together and discuss the way forward for Nigeria's economic growth and development.
Key points
- Weak governance and inconsistent regulations may undermine Nigeria's $1 trillion economy target.
- Stronger governance structures are needed to institutionalize decision-making and improve accountability.
- Boards must broaden their oversight beyond immediate financial returns to address emerging business risks.
