STRONG GOVERNANCE CITED AS KEY DRIVER FOR INVESTMENT GROWTH IN NIGERIA

STRONG GOVERNANCE CITED AS KEY DRIVER FOR INVESTMENT GROWTH IN NIGERIA
By Prince Benson Davies

Speakers at the Third National Corporate Governance Summit have declared that strong governance practices are now central to Nigeria’s ability to attract and retain both local and foreign investment.

The summit, held in Lagos, brought together policymakers, regulators, investors and corporate leaders to examine how transparency, accountability and ethical leadership can support the country’s economic reform agenda.

Participants said global investors are shifting focus beyond short-term financial returns. They are now prioritising institutions that demonstrate clear oversight, stable regulations and adherence to environmental, social and governance, ESG, standards. According to speakers, these factors have become decisive in determining where capital flows.

In his remarks, Chairman of the Board of Governors of the IoD Centre for Corporate Governance, Urum Kalu Eke, said embedding good governance in both public and private institutions is critical to building investor confidence. He noted that organisations with sound governance structures tend to perform better, manage risks more effectively and contribute more consistently to national development.

“Strong governance creates stronger institutions. It makes accountability routine, builds trust with investors, and positions the economy for sustainable growth,” he said.

Also speaking, the Executive Secretary and Chief Executive Officer of the Financial Reporting Council of Nigeria, FRC, Dr. Rabiu Olowo, said the summit was designed to sustain conversations from previous editions and deepen collaboration among stakeholders. He explained that the forum provides a national platform for developing practical solutions that can translate governance principles into measurable economic outcomes.

Dr. Olowo added that existing frameworks such as the Nigerian Code of Corporate Governance, the Companies and Allied Matters Act, the FRC Act, and various sector codes already provide a strong regulatory base. The challenge, he said, is ensuring consistent implementation and institutional discipline across sectors.

Discussions at the Lagos meeting also focused on the rising influence of ESG in investment decisions. Speakers observed that companies with robust governance and sustainability practices are more attractive to global capital and better able to withstand economic shocks.

The summit concluded with a call for Nigerian businesses to view governance as a strategic priority rather than a compliance requirement. Participants agreed that improving governance standards will strengthen Nigeria’s investment climate and reinforce its position as a leading destination for business in Africa.

The Third National Corporate Governance Summit was organised by the IoD Centre for Corporate Governance, the Institute of Chartered Secretaries and Administrators of Nigeria, the Ministry of Finance Incorporated, and the Financial Reporting Council of Nigeria.