President and Chairman of the Governing Council, Chartered Institute of Directors (CIoD) Nigeria, Adetunji Oyebanji, in this interview with GLORIA NWAFOR, speaks on why Nigerian businesses must rethink their approach to growth, warning that high borrowing costs, economic uncertainty and regulatory changes require stronger governance, disciplined capital allocation and long-term strategic thinking. Ahead of the 2027 elections, he also speaks on the role of business leaders in preserving policy continuity.

Nigeria is approaching another election cycle. What role should business leaders and directors play in ensuring policy continuity and long-term economic stability, regardless of political transitions?

Business leaders have a responsibility to promote institutional stability and policy continuity, irrespective of who is in government. Boards should incorporate election-related risks into their strategic and enterprise risk planning because political transitions can affect fiscal policy, regulation, exchange rates and investment decisions.

At the same time, the private sector should advocate for the continuity of sound economic reforms rather than the continuity of any administration. Business leaders can contribute through objective, evidence-based engagement with policymakers, helping to promote regulatory certainty and policies that support long-term investment.

Ultimately, Nigeria’s economic stability should depend more on strong institutions than on any government’s tenure. Directors have an important role as custodians of good governance and advocates for policy consistency.

Corruption, weak institutions and policy inconsistency continue to affect investor confidence. What specific reforms do you believe are now non-negotiable if Nigeria is to compete more effectively for investment?

The starting point is stronger institutions that uphold transparency, accountability and the rule of law. Investors need a business environment where policies are predictable, contracts are respected, regulations are applied consistently, and institutions function effectively regardless of leadership changes. These are fundamental to investment decisions.

The private sector also has a responsibility. Directors must promote strong governance, ethical leadership and transparency within their own organisations. When both public institutions and private businesses operate with integrity and accountability, Nigeria becomes a more credible destination for long-term investment.

Technology, artificial intelligence and digital disruption are changing how organisations operate. How prepared are Nigerian business leaders for this shift, and what skills will define successful leadership in the years ahead?

AI has become one of the most important governance issues facing boards. Our recently launched biannual State of Corporate Governance Report shows that AI adoption is increasing, but governance and oversight have not kept pace.

Boards therefore need to understand not only the opportunities AI presents but also its implications for risk management, cybersecurity, data governance, ethics and regulatory compliance. Directors do not necessarily have to become AI experts, but they must understand enough to ask the right questions and ensure that appropriate governance structures are in place.

Future-ready leadership will require continuous learning, technological awareness, strong cyber-risk oversight and the ability to build diverse boards with the expertise needed to manage emerging risks. The leaders who succeed will be those willing to learn, adapt and make responsible decisions in an increasingly technology-driven environment.

One year after assuming office as President of the Chartered Institute of Directors (CIoD) Nigeria, how would you assess your administration’s performance, and what tangible milestones would you say have had the greatest impact on corporate governance and the institute itself?

It has been a year of purposeful transition and measurable progress. When I assumed office as the 19th President, I anchored the administration on the ICE agenda — Implementation, Collaboration and Engagement — to translate the institute’s mandate into measurable outcomes.

Implementation turns policies and priorities into action; collaboration strengthens partnerships across the public and private sectors; and engagement deepens our relationships with members, directors, regulators and other stakeholders.

One significant achievement has been membership growth. We welcomed 1,249 new members during the year and re-engaged many dormant members. We also introduced the CIoD mobile app, which has made it easier for members to access information, receive updates and engage with the institute.

The institute has continued to advocate for ethical leadership and board excellence. In practical terms, how have those efforts translated into measurable impacts over the past year?

We support advocacy with evidence. Our 2026 Corporate Governance Outlook Report provides useful insight into where Nigerian organisations are making progress and where gaps remain.

For instance, 100 per cent of organisations surveyed had board evaluation frameworks, which is encouraging. However, only 42 per cent disclosed ESG performance, 21 per cent linked executive remuneration to sustainability performance, and just eight per cent had dedicated board risk committees.

These findings help us target our interventions. The objective is not simply to train directors but to improve the quality of decision-making, oversight, accountability and risk management in Nigerian boardrooms.

From the perspective of directors and corporate leaders, what are the biggest governance and leadership lessons businesses must embrace to remain resilient?

The biggest lesson is that boards must look beyond short-term indicators and focus on resilience. Although headline inflation declined to 15.91 per cent as of June 2026, the Monetary Policy Rate remains at 26.5 per cent, meaning the cost of capital is still very high.

Boards therefore need disciplined capital allocation, stronger liquidity management and robust scenario planning. They should prepare for different economic outcomes rather than assume that conditions will quickly return to normal.

Economic difficulties also expose leadership quality. This is precisely when boards must strengthen oversight, transparency and accountability rather than relax governance standards in pursuit of short-term results. Businesses that maintain financial discipline, ethical leadership and sound governance will be better positioned to retain investor and stakeholder confidence and take advantage of opportunities when conditions improve.

There has been growing concern about the quality of leadership across both the public and private sectors. In your view, what are the biggest leadership deficits holding Nigeria back, and how can they be addressed?

I would identify three major deficits. The first is a governance deficit — the gap between having governance structures on paper and actually practising good governance. Many organisations have boards, policies and codes of conduct, but governance sometimes becomes a compliance exercise rather than a discipline that protects institutions and stakeholders.

The second is short-term thinking. Too many decisions are driven by the next quarter, the next election cycle or the next headline rather than sustainable value. Leadership requires the courage to make decisions whose full benefits may not be realised immediately.

The third is under-investment in future leaders. We cannot complain about a leadership deficit while failing to build the pipeline to replace current leaders. Mentorship, director development and succession planning should be treated as core responsibilities.

At CIoD Nigeria, we are addressing these issues through director training and certification, board evaluation, accountability frameworks and broader governance advocacy, including in the public sector. Ultimately, we address leadership deficits one institution, one boardroom and one decision at a time.

Businesses have welcomed some of the government’s economic reforms, but many say the pain has outpaced the gains. What would be your advice to policymakers as they seek to balance reform with economic inclusion?

The reforms have created a stronger foundation for macroeconomic stability, and that progress deserves recognition. Inflation has declined significantly, while reforms such as fuel subsidy removal, exchange-rate liberalisation and tighter monetary policy have addressed some longstanding distortions.

However, the benefits have not been evenly distributed. Many households and businesses are still facing significant cost-of-living pressures. Policymakers therefore need to ensure that reforms are accompanied by timely, well-targeted social protection, particularly for vulnerable groups.

Economic reforms should not be assessed only through macroeconomic indicators. Policymakers must also consider their effects on households, businesses, employment and livelihoods. The reform programme’s sustainability will ultimately depend on whether Nigerians see tangible improvements in their economic lives.

Succession remains a challenge in many organisations, with businesses often revolving around individuals rather than enduring institutions. What changes would you like to see in how Nigerian organisations prepare the next generation of leaders?

Succession is ultimately a test of leadership. A leader’s legacy should be measured by what continues to function effectively after they leave. Too many organisations become overly dependent on founders or individual executives, creating instability when those individuals exit.

Succession planning should therefore be an ongoing board responsibility, not something considered only when a vacancy arises. Organisations should identify and develop potential successors years in advance. They should also invest more in mentorship, structured leadership development, cross-functional exposure and director training.

Succession must also become less personalised. Institutions that endure build systems, documented processes and institutional memory that outlive individuals. That cultural shift requires organisations, regulators and professional bodies such as CIoD Nigeria to make succession planning a normal part of good governance.

Small and medium-sized enterprises account for the bulk of businesses in Nigeria, yet many operate without formal governance structures. How is CIoD Nigeria extending corporate governance principles beyond large corporations to SMEs and family-owned businesses?

Governance should not be seen as something reserved for large corporations. SMEs and family businesses are the backbone of Nigeria’s economy, and their sustainability matters to national economic growth.

Our approach is to simplify governance so that it reflects the realities of smaller businesses. That includes separating ownership from management, establishing basic advisory boards, documenting succession plans and strengthening financial controls.

Family business governance does not have to look like listed-company governance, but some governance structure must exist.