CORPORATE GOVERNANCE AND PRACTICE IN NIGERIA: EXPLORING ITS TRICKY AND PROGNOSES

Abstract

The major reason why most business tycoons decided to incorporate companies in Nigeria is the desire to make profits as well as the immediate and long term benefits of incorporation guaranteed by the law. To ultimately achieve this purpose, the law also designs the way and manner incorporated companies should be governed. In order to achieve the overall objectives of incorporation, strict adherence to effective corporate governance framework by human organs becomes indispensable. As observed in Nigeria, a number of companies had gone into their early graves as a result of improper handling by the human organs managing their affairs. Hence, this study, which is essentially literature based with particular emphasis on the relevant provisions of the Companies and Allies Matters Act, 1990, investigates reasons for corporate governance and corporate governance failure in Nigeria with its consequent negative effects. The research focuses on the human organs responsible for day-to-day activities of the company. The paper argues that human organs of the company are the architects of corporate governance failure in Nigeria. It recommends strict enforcement paradigm for preserving and sustaining the integrity of the corporate governance in Nigeria.