Weak governance, inconsistent regulations and poor compliance with contracts and court orders could undermine Nigeria’s ambition to build a $1 trillion economy, the Chartered Institute of Directors (CIoD) Nigeria has warned.

The institute said achieving the target would require greater regulatory certainty, respect for the rule of law and stronger corporate governance to give businesses and investors the confidence to commit long-term capital.

President and Chairman of the Governing Council, CIoD Nigeria, Adetunji Oyebanji, stated this yesterday in Lagos at a press conference ahead of the institute’s 2026 yearly directors’ conference, with the theme ‘Reimagining the Boardroom for Inclusive and Sustainable National Prosperity in the New Economy.’

Oyebanji said governance was central to the $1 trillion economic ambition because businesses could not make long-term investment decisions in an environment where laws and regulations were unpredictable or contractual and court obligations were not respected.

He said: “Governance speaks about consistency, the rule of law, doing things right and obeying court orders. Having contracts and obeying those contracts are aspects of governance.”

The CIoD president also linked good corporate governance to access to finance, saying banks and other financial institutions increasingly require evidence of sound governance before extending credit to businesses.

According to him, a properly constituted board could bring independent expertise, challenge management decisions and strengthen the credibility of a company seeking capital.

Oyebanji said the governance challenge was particularly significant for small and medium-sized enterprises (SMEs), many of which begin with decision-making concentrated in one individual but face greater risks as they expand.

He noted that situations where the owner simultaneously acts as manager and accountant might be workable at the early stage of a business but could become a major governance weakness as the enterprise grows.

He said stronger governance structures would help businesses institutionalise decision-making, improve accountability and position them to attract the capital required for expansion.

The CIoD president added that boards must also broaden their oversight beyond immediate financial returns as artificial intelligence (AI), technological disruption, sustainability pressures and changing global investment patterns reshape business risks. He said these developments required directors to continually reassess how they provide leadership, oversight and strategic direction.

Chairman of the conference’s National Organising Committee, Dr Waheed Olagunju, said the conference would therefore examine contemporary challenges facing boardrooms, including board accountability in the age of AI, strategic competitiveness, entrepreneurial growth, access to capital and corporate conduct.

Olagunju said the programme was designed to move discussions beyond conventional boardroom concerns and examine how directors could contribute to value creation, collaboration and inclusion in pursuit of sustainable economic growth.

He disclosed that the conference would also feature a Business Meets Government Dinner focused on the governance and financing requirements for the $1 trillion economic ambition, under the sub-theme, “Building a $1 Trillion Economy Through Sustainable Capital and Governance.”

The conference is scheduled for November 10 and 11 at the Lagos Oriental Hotel and will bring together directors, business leaders, policymakers, entrepreneurs and other stakeholders.