The Chartered Institute of Directors Nigeria (CIoD) has called for a declaration of state of emergency in Nigeria’s public sector corporate governance, saying that it is a matter of “first-order national emergency.”
The CIoD made this call during the week in a report titled ‘Bi-Annual State of Corporate Governance Report’ with the theme: ‘Tracking Governance, Strengthening Institutions, Enhancing Competitiveness’.
It hyped the report as “the governance health check of the nation,” saying that it is a “comprehensive assessment of governance trends, board effectiveness, regulatory developments, risk exposures, and institutional resilience.”
It also decried Nigeria’s 26 percentage score in the 2025 Corruption Perceptions Index (CPI), where the country was ranked 142 out of 182 countries, is below the Sub-Saharan African average.
The report identified internal control failures as the common thread in Nigeria’s governance environment.
The report said, “CIoD Nigeria has formally declared public sector governance a national emergency.
“Nigeria’s 2025 Corruption Perceptions Index (CPI) ranking of 142 of 182 countries, and a score of 26 per cent is below the Sub-Saharan African average.”
It recalled that “an April 2026 IMF report, ‘Budget Credibility in Sub-Saharan Africa’, identified Nigeria specifically, finding that weak governance mechanisms significantly contribute to severe budget execution gaps.”
According to the report, “weak State Owned Enterprises (SOEs) board governance, fiscal opacity, and under-resourced internal audit functions undermine economic development and public confidence.”
The report said that Nigeria’s corporate governance landscape stands at a critical inflection point, adding that “while global governance frameworks continue to evolve and African institutions, particularly South Africa’s King V code, are raising the bar on oversight standards, Nigeria faces a paradox: our regulatory environment is tightening, yet implementation and enforcement remain fragmented.”
The CIoD’s report stated that internal control failures have remained the common thread in Nigeria’s governance failures.
It said, “From banking fraud to ransomware attacks across government agencies and tier-1 banks, weak internal controls are the consistent precursor.”
It also said that succession planning is the governance fault line at every level.
“From African boardroom CEO succession to Nigerian family business continuity, succession planning remains the weakest governance discipline.
“Activist investor campaigns targeting CEO replacement are increasing. 70 per cent of African family businesses fail by the second generation, a statistic that indicts governance rigour.
“The conference board’s 2026 research identifies succession planning as a current-cycle strategic imperative,” the report said.
In his welcome remarks, the President/Chairman of Council, CIoD, Mr. Adetunji Oyebanji, said that the CIoD is presenting an objective assessment of Nigeria’s current standing, drawing on extensive research and credible global, regional, and national sources.
Oyebanji said, “Today, we present a comprehensive, evidence-backed assessment of the governance health of our nation.
“This is not just an academic exercise; it is an analytical deep-dive built upon tracking tens of verified research sources on corporate governance spanning January to June 2026, paired with real-time institutional data.”
He added, “As we review H1 2026, Nigeria stands at a highly critical corporate governance point.
“We are experiencing a stark paradox: while our legislative and regulatory architecture is tightening with incredible momentum, actual implementation and enforcement remain fragmented and uneven.”
According to him, “Our rules are world-class; our execution is sub-par. If we want to build truly resilient institutions and enhance Nigeria’s global competitiveness, we must bridge this execution gap immediately.
The Director General of CIoD, Dr. Taiwo Nolas-Alausa, said that “our findings reveal both encouraging progress and pressing challenges. While segments of the private sector continue to strengthen governance practices, significant gaps remain in public sector governance, institutional accountability, AI readiness, cybersecurity oversight, ESG integration, and effective enforcement.
“These challenges are not insurmountable, but addressing them requires stronger leadership, greater institutional commitment, and sustained collaboration across government, business, regulators, civil society, and the media.”
Dike Onwuamaeze
