As countries, including Nigeria compete for Foreign Direct investments, FDIs to boost their economies, Fabian Ajogwu, a Senior Advocate of Nigeria who is also Lagos Business School Professor of Corporate Governance has said that there is a strong correlation between good governance and investor confidence.
He said investors are more likely to commit resources to countries where governance is characterised by stability, transparency, and accountability.
Ajogwu who spoke at the Institute of Chartered Secretaries and Administrators of Nigeria, ICSAN annual conference recently in Lagos cited TotalEnergies commitment to invest $6 billion in energy projects in Angola instead of Nigeria.
The multinational company, according to him had blamed policy inconsistencies in Nigeria as the primary reason for its decision.
Ajogwu, a corporate governance expert who spoke on “Reassessing the Governance Dynamics in Nigeria’s Transition to Enduring Development and National Prosperity” as the theme of the conference, listed corporate governance challenges in Nigeria to include corruption which he said costs Nigeria $18 billion annually.
He said weak institutions contribute to corruption as the institutions lack the independence necessary to implement laws and curb corruption effectively in the country.
Other factors, according to him include economic disparities where there is large gap between the wealthy and the poor. He also identified insecurity which has led to loss of lives, hindered economic development, and eroded the public’s trust in the government’s ability to protect its citizens.
Ajogwu said good governance must be at the forefront of envisioning a prosperous future for Nigeria. “This involves establishing a government that is transparent, accountable, and responsive to its people’s needs. It also includes reforming institutions to ensure they operate effectively and serve the public interest, thereby enhancing Nigerians’ overall quality of life.
Similarly, Ibukun Awosika, the chairman of occasion said that for a country to work, there must be trust on the leaders, security of investment, effective system to resolve issues.
If we really want to build a system that thrives, we are not short of best minds. A lot of Nigerians have brilliant ideas. “When there is a situation where there is lack of courage, and lack of systems, then it is left to charlatans”, she said.
Awosika said in building society, we need to build systems which need courage to build. “We need intellectuals who are not afraid to say the truth to make systems work”.
On what policies and reforms that can drive Nigeria towards sustainable economic growth, she said policies are not the issue because Nigeria has some right policies in place but the country needs to deal with execution of the policies.
Citing, for instance, why refineries don’t work, she identified lack of will, lack of commitment to do what is right for Nigerians and corruption as Nigeria’s major problems.
In her welcome speech, Funmi Ekundayo, President of ICSAN said the theme of the conference has direct bearing on the contemporary Nigeria’s socio economic reality, given the fact the nation is in dire need of enduring all-round development.
Ekundayo identified good governance as the bedrock of national progress. She cited countries like South Korea, Hong Kong, Malaysia, and Singapore and Taiwan as nations that have broken the barriers of stagnation and retrogression and transited to development through creation and sustenance of strong national institutions that are driven with good governance.
According to her for a nation to progress in all ramifications the leaders must see growth as a top priority and not just as one of the options.
