The President and Chairman of the Governing Council of the Institute of Chartered Secretaries and Administrators of Nigeria, Uto Ukpanah, has stressed that strong corporate governance remains one of the most important pillars for achieving sustainable economic growth and attracting long-term investment into Nigeria.
Ukpanah made the assertion while highlighting the critical role governance plays in shaping the performance of institutions, businesses and the wider economy.
According to her, while governments often focus on economic policies, infrastructure development and political leadership as drivers of growth, the effectiveness of those initiatives largely depends on the quality of governance structures overseeing their implementation.
She argued that many of Nigeria’s developmental challenges stem not from a lack of resources, ideas or policy frameworks, but from weaknesses in governance systems that undermine execution and accountability.
“Where governance is weak, outcomes are poor; where governance is strong, progress follows,” she said.
Governance Determines Institutional Success
Ukpanah described corporate governance as the framework through which organisations are directed, controlled and held accountable.
She explained that governance encompasses the structures, systems, processes and ethical standards that guide decision-making and ensure organisations act in the interests of stakeholders.
According to her, effective governance promotes transparency, accountability, fairness and responsibility—principles that are essential for building trust and achieving long-term organisational success.
The ICSAN president noted that countries and businesses with strong governance structures are generally better positioned to manage risks, improve operational efficiency and sustain growth.
She further observed that governance has become increasingly important in a rapidly changing business environment where investors demand higher levels of transparency and accountability.
Investor Confidence Depends on Governance Standards
Highlighting the link between governance and economic development, Ukpanah said investors are more inclined to commit capital to environments where institutions are governed effectively and regulatory frameworks are respected.
She warned that weak governance often creates conditions for corruption, inefficiency, financial mismanagement and reputational damage, all of which can discourage investment and slow economic progress.
“In Nigeria, the need to strengthen corporate governance has become increasingly urgent,” she said.
She pointed to mounting fiscal pressures, declining investor confidence and governance failures across sectors as indicators that stronger institutional oversight is needed.
According to her, several governance lapses in both public and private organisations have resulted in significant financial losses and damaged public trust, underscoring the need for reforms.
Effective Boards Essential for Organisational Performance
Ukpanah also emphasised the role of boards of directors in driving institutional success, noting that effective boards provide strategic leadership, monitor risks and safeguard stakeholder interests.
She said corporate governance should not be treated merely as a compliance exercise but should become embedded within an organisation’s culture and everyday operations.
This, she noted, requires a commitment to ethical conduct, transparent reporting, regulatory compliance and responsible decision-making at all levels of management.
According to her, organisations that successfully integrate governance principles into their culture are better equipped to navigate challenges and maintain stakeholder confidence.
Governance and Sustainability Increasingly Interconnected
The ICSAN president further linked governance practices to sustainability, noting that environmental, social and governance (ESG) considerations now play a significant role in business performance and investor decision-making.
She explained that stakeholders increasingly expect organisations to demonstrate not only financial strength but also social responsibility, environmental stewardship and sound governance practices.
As a result, governance frameworks must evolve to address emerging risks and sustainability concerns while ensuring organisations remain accountable to stakeholders.
Governance Professionals Play Critical Role
Ukpanah highlighted the contributions of governance professionals, including company secretaries, compliance officers, legal advisers and risk management specialists, describing them as key custodians of governance frameworks within organisations.
According to her, these professionals help institutions maintain regulatory compliance, strengthen accountability systems and uphold ethical standards.
She noted that ICSAN has continued to support governance development in Nigeria through professional education, advocacy initiatives, training programmes and capacity-building efforts aimed at raising governance standards across sectors.
ICSAN Marks 60 Years of Governance Advocacy
Reflecting on the institute's milestone anniversary, Ukpanah said ICSAN's 60th anniversary provides an opportunity to assess its contributions to governance development while reinforcing its commitment to promoting best practices nationwide.
“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.
She maintained that strong governance remains indispensable to building resilient institutions, improving investor confidence and driving long-term national 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.
As Nigeria continues to pursue economic reforms and attract investment, governance experts increasingly argue that strengthening accountability, transparency and institutional effectiveness may prove just as important as introducing new policies or funding major infrastructure projects.