Boards play key roles in corporate governance – Don

A professor of corporate governance, Fabian Ajogwu (SAN), has emphasised the role of boards of directors, especially in state-owned enterprises, in implementing an organisation’s Environmental, Social, and Governance strategies.

He noted that the Nigerian Code of Corporate Governance 2018 mandates boards to define ESG strategies, manage ESG-related risks, and foster stakeholder engagement.

Ajogwu spoke at an intensive “Programme on Corporate Governance and Board Effectiveness” for the management staff of the Bureau of Public Enterprises.

The programme was organised by the Centre for Public Sector Governance, affiliated with the Society for Corporate Governance Nigeria, according to a statement.

He underscored the importance of integrating ESG into corporate risk management, saying “ESG-related risks” now influence financial stability and drive long-term value.

According to him, boards are encouraged to proactively identify and disclose ESG risks, with a focus on sustainability as a core corporate priority.

“Addressing ESG concerns positively affects long-term financial performance and enhances the company’s market competitiveness.

“ESG practices support a shift toward long-term planning and improved operational efficiency.”

Ajogwu said the centre, which will be formally launched on November 19, 2024, aims to strengthen governance practices within Nigeria’s public sector, fostering a more effective and transparent system across all levels of government.

He added that the centre serves as a dedicated hub for capacity building and governance education tailored for directors and leaders in public-sector entities.

This includes government parastatals, agencies, departments, and ministries.

“The governance training for the BPE board is an example of the Centre’s role in empowering public sector leaders with the knowledge and standards necessary for efficient, transparent governance,” he said.

Ajogwu commended BPE Director-General, Mr Ayodeji Gbeleyi, for supporting “essential steps toward improving governance and operational efficiency within Nigeria’s public sector.”

The SAN said in addition to capacity-building initiatives and programmes, the Centre for Public Sector Governance will also provide advocacy, conduct research, publish thought leadership materials, produce reports, and carry out baseline surveys on governance within the public sector, to support policy development and implementation, guide the creation of governance frameworks, and inform structural reforms that elevate governance standards within the public sector.

The centre is a not-for-profit, with Dr Ernest Ndukwe, OFR, serving as the Chairman of its advisory board.