As the regulatory landscape continues to evolve, Nigerian businesses are facing increasing pressure to adapt and comply with complex standards. Industry operators have called for proactive compliance to mitigate risks and navigate regulatory challenges.
They made this known at a recent Investigations, Compliance and Ethics (ICE) summit themed, “Future Ready: Strategies for Proactive Compliance,” orginised by Udo Udoma & Belo-Osagie (UUBO), one of the leading Nigerian law firms, to highlight the challenges and opportunities in this area.
The summit highlighted the growing importance of compliance in business operations as regulatory frameworks evolve and corporate responsibility becomes a key focus. Participants discussed the need for businesses to not only meet current standards but also anticipate and prepare for future regulations that may impact their operations.
“As regulatory frameworks grow more complex and corporate responsibility becomes a cornerstone of business operations, organisations must shift from reactive measures to proactive strategies,” said Adeola Sunmola, a partner at UUBO.
The partner, who also serves as head of the Compliance & Investigations team for the law firm, said this theme emphasises the importance of staying ahead of regulatory changes, adopting a forward-thinking approach, and implementing robust compliance measures that not only meet current standards but also prepares organisations for future challenges.
The compliance and investigation landscape in Nigeria faces several challenges and gaps that can impact the effectiveness of regulatory enforcement and adherence to legal standards. According to her, some of the key gaps and challenges include regulatory fragmentation and coordination, capacity constraints, enforcement gaps, legal and judicial bottlenecks and insufficient awareness and training.
She said: “Addressing these gaps requires concerted efforts from both the public and private sectors, including capacity-building initiatives, improved inter-agency coordination, and efforts to foster a culture of integrity.
“For organisations to thrive, they must prioritise ethical conduct, which starts with a strong tone from the top and a culture of compliance. Leadership must set the standard by demonstrating a commitment to integrity and ethical behavior, ensuring that these values permeate the entire organisation.
“This can be achieved through well-defined codes of conduct, policies on conflict of interest, and clear guidelines on acceptable behavior. Such frameworks provide a roadmap for employees, guiding their decision-making and interactions both within the organisation and with external stakeholders.”
Meanwhile, talking about addressing bribery risks, Jumoke Lambo, also a partner at UUBO, said that organisations must establish and communicate a strong stance against the menace.
She said: “This begins with leadership making it clear that bribery will not be tolerated under any circumstances. This “tone from the top” must be supported by written anti-bribery policies that outline acceptable practices, potential risks, and clear consequences for violations.
“regular audits, risk assessments, and due diligence on third-party relationships, such as vendors and consultants, who could pose bribery risks. Regular training for employees, tailored to different levels of the organisation, ensures that everyone, from frontline staff to executives, understands the implications of bribery and how to recognise and report red flags.
“Establishing confidential whistleblowing channels can empower employees to report unethical behavior without fear of retaliation. By encouraging openness and safeguarding whistleblowers, organisations can identify and address bribery issues before they escalate into larger crises.”
According to her, it is also important to ensure that any reported incidents are thoroughly investigated and dealt with swiftly, as this reinforces the company’s commitment to transparency and accountability.
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