The Chartered Institute of Directors (CIoD) Nigeria has urged the Federal Government to adopt a mandatory public sector governance code as part of urgent reforms needed to support Nigeria’s ambition of building a one trillion-dollar economy.
The institute made the call in a position paper obtained by the News Agency of Nigeria (NAN) on Monday in Lagos.
CIoD Director-General, Dr Taiwo Nolas-Alausa, warned that persistent governance failures across public institutions and State-Owned Enterprises (SOEs) are undermining economic growth, investor confidence and service delivery.
He identified corruption, procurement fraud, weak oversight structures and fiscal opacity as key challenges affecting Nigeria’s development trajectory.
According to him, governance reform must be treated as a national priority requiring immediate attention from government institutions, regulators and lawmakers.
Nolas-Alausa said Nigeria already has several governance-related laws, including the Nigerian Code of Corporate Governance (2018), Fiscal Responsibility Act, Public Procurement Act, EFCC Act, and ICPC Act, but implementation remains weak.
He noted that deficiencies persist due to poor enforcement rather than absence of regulations.
He also highlighted issues such as politically influenced board appointments, contract splitting, weak internal controls and ineffective accountability systems.
The CIoD boss said many SOE boards lack independence because appointments are not based on merit.
He added that several public enterprises fail to publish audited financial statements within statutory timelines, limiting transparency and oversight.
He also raised concerns about under-resourced internal audit units and weak risk management structures across Ministries, Departments and Agencies (MDAs).
Nolas-Alausa urged the government to introduce a Nigerian Public Sector Governance Code with mandatory compliance, sanctions and regular performance assessments.
He recommended merit-based appointments to SOE boards, stronger whistleblower protection, and real-time public budget reporting.
He also called for the publication of audited financial statements within six months of each fiscal year.
He referenced the 2025 Corruption Perceptions Index, where Nigeria ranked 142nd out of 182 countries with a score of 26 out of 100.
He also cited an IMF report on budget credibility in Sub-Saharan Africa, linking weak governance to poor budget execution and inefficiency in public spending.
The CIoD proposed strengthened internal audit systems, continuous governance training, and increased participation of independent non-executive directors in public institutions.
It also recommended an annual Public Sector Governance Scorecard to evaluate ministries and SOEs.
Nolas-Alausa said such reforms would improve efficiency, reduce corruption and attract private investment into key sectors such as infrastructure, energy, transport and finance.
He reaffirmed CIoD’s commitment to working with government, regulators and civil society to strengthen governance systems.
“Transparent institutions, accountable leadership and efficient public resource management are indispensable for achieving sustainable economic growth and Nigeria’s one trillion-dollar economy target,” he said.
