The Chartered Institute of Directors (CIoD) has said that the full implementation of the Nigerian Code of Corporate Governance (NCCG) 2018 across all public sector institutions must no longer be treated as an aspirational ideal but as a binding imperative.
It said ensuring that compliance is monitored by independent and empowered bodies is crucial to restoring trust and discipline in public finance oversight.
Alongside, it said there is a pressing need to fortify whistleblower protection laws to create a secure environment for individuals to expose financial irregularities without fear of reprisal or professional ruin.
The institute, in its weekly bulletin on ‘Reassessing the Role of Governance Oversight in Public Finance: Directors’ Role’, said the move was necessary, following the unsettling case of financial opacity, which drew attention to a staggering N210 trillion financial gap discovered during a Senate investigation.
It said while the details of the case remained subject to ongoing probes, it said the sheer scale underscores one of the most critical questions of the time on ‘who watches over the stewards of public wealth?’.
It said organisational culture must shift from secrecy to transparency, while leaders must create a culture where accountability is non-negotiable, and every financial record tells a clear story.
“Board members must not serve as ceremonial figureheads but must actively engage in financial oversight and risk management. Boards should institutionalise rigorous internal audit systems and whistleblower frameworks to detect and deter fraud. Public sector entities must align with governance principles not as a formality, but as a strategic necessity,” it said.
The institute suggested that in tandem with structural reforms, the adoption of digital tools, particularly blockchain-based public finance systems, would radically transform traceability, enhance real-time fund monitoring, and significantly reduce opacity in financial transactions.
According to it, technological interventions are no longer futuristic luxuries but necessary safeguards in an era where financial impropriety can cripple national growth.
It said complementing technological innovation was the urgent need for institutionalised capacity-building programmes tailored for public board members.
“Understanding fiduciary responsibilities, ethical leadership, and the broader architecture of corporate governance is crucial for directors who wield decision-making power over public resources. Without such knowledge, oversight becomes ceremonial rather than substantive,” it said.
However, the institute maintained that genuine reform would remain elusive unless there is a robust partnership between the legislature and the executive arms of government.
It said collaborative reform efforts must focus on closing legal loopholes, strengthening enforcement frameworks, and ensuring that audit reports transition from dusty shelves into actionable items with consequences.
It noted that legal frameworks that fail to act decisively on audit queries or infractions only embolden malfeasance.
Noting that Nigeria’s journey toward economic transformation would not be charted by resource endowment alone, nor by the mere announcement of progressive policies, it said it would be defined by the nation’s ability to institutionalise transparency, nurture credible institutions, and consistently enforce accountability.
