Corporate governance remains a critical factor in achieving sustainable economic growth and strengthening investor confidence in Nigeria, according to the President and Chairman of the Governing Council of the Institute of Chartered Secretaries and Administrators of Nigeria, Mrs Uto Ukpanah.
Ukpanah stated in a statement on Wednesday that while economic policies, infrastructure and political leadership are important drivers of development, the quality of governance within institutions often determines whether such initiatives deliver the intended outcomes.
According to her, Nigeria’s development challenges are not primarily due to a lack of ideas, policies or resources, but are frequently linked to weaknesses in governance structures across both public and private institutions. “Where governance is weak, outcomes are poor; where governance is strong, progress follows,” she said.
She described corporate governance as the system through which organisations are directed and controlled, encompassing the structures, processes and ethical standards that guide decision-making.
Effective governance, she noted, promotes transparency, accountability, fairness and responsibility.
Ukpanah said the relationship between governance and national development is significant because economies perform better when institutions operate efficiently, manage risks effectively and act in the interests of stakeholders.
She argued that investors are more likely to commit capital in environments where governance standards are strong and regulatory frameworks are respected, while weak governance often results in inefficiency, corruption and economic setbacks.
“In Nigeria, the need to strengthen corporate governance has become increasingly urgent,” she said, citing fiscal pressures, declining investor confidence and governance failures that have contributed to financial losses and reputational damage in both the public and private sectors.
According to her, effective boards play an important role in organisational performance by providing strategic oversight, managing risks and protecting stakeholder interests. She added that governance principles should extend beyond boardrooms and become embedded in organisational culture through ethical conduct, transparent reporting and compliance with regulations.
Ukpanah also linked governance to sustainability, noting that environmental, social and governance considerations have become increasingly important in modern business operations. She said regulators and professional bodies have a role to play in strengthening governance standards through oversight, capacity building and the promotion of ethical conduct.
The ICSAN president further highlighted the importance of governance professionals, including company secretaries, compliance officers, risk managers and legal advisers, describing them as custodians of governance frameworks within organisations.
She noted that ICSAN has contributed to governance development through advocacy, professional training and capacity-building programmes. “As ICSAN marks its 60th anniversary this year, it presents an opportunity to reflect on its enduring contributions while reaffirming its commitment to advancing governance standards in Nigeria,” she said.
Ukpanah maintained that strong governance remains essential for building resilient institutions, sustaining investor confidence and supporting long-term economic development. “Strong governance is not optional; it is essential. It is the foundation upon which resilient institutions are built, investor confidence is sustained, and national development is achieved,” she said.