REASSESSING CORPORATE GOVERNANCE IN NIGERIA: REGULATORY EVOLUTION, MECHANISMS, AND PERSISTENT CHALLENGES

Abstract

Corporate governance in Nigeria has had significant regulatory advancement over the last twenty years, encompassing modifications in the Companies and Allied Matters Act, sector-specific governance codes, among others. Notwithstanding this evolution, prominent corporate failures and ongoing governance deficiencies erode market stability, investor confidence, and institutional responsibility. This paper rigorously evaluates the evolution of corporate governance regulation in Nigeria and analyses the efficacy of fundamental governance mechanisms such as board composition, risk management systems, and others. Utilising a doctrinal and analytical approach based on the agency, stakeholder, and institutional theories, the paper reveals that regulatory fragmentation, inadequate enforcement capacity, and other factors undermine the effectiveness of current reforms. The paper contends that in the absence of efficient legislative frameworks, robust enforcement mechanisms, and other global standards like the ISSB framework, enhancements in governance will be merely superficial. The paper provides a systematic examination of regulatory development and ongoing issues, contributing to discussions on regulatory coherence, corporate accountability, and the future trajectory of governance change in Nigeria.