As businesses confront challenges such as rising interest rates, inflation, supply chain disruptions, geopolitical uncertainties, and shifting consumer expectations, stakeholders have called for sustainability reporting to enhance corporate governance.
  
They stated that the country’s State-Owned Enterprises (SOEs) must adopt stronger governance frameworks to drive sustainable growth.
  
Speaking at the Society for Corporate Governance Nigeria (SCGN) 2024 yearly conference with the theme ‘Corporate Survival and Sustainability: The New Face of Governance’, Dean of Lagos Business School, Chris Ogbechie, emphasised the need for Nigerian businesses to adopt sustainability practices as part of their governance models.
  
He warned that ignoring Environmental, Social, and Governance (ESG) criteria in business operations would be detrimental to long-term success.
 
“Sustainability is not just a corporate buzzword; it is essential for any business looking to thrive in the modern world. Companies that integrate ESG are better equipped to face risks and create value,” Ogbechie said.
 
 According to him, boards play a critical role in driving this shift toward sustainability.
“Realising that there wouldn’t be perfect governance without sustainability, boards must provide clear oversight and engage in courageous decision-making.
  
“Sustainability reports can help companies develop sustainable corporate systems simply by the boards adopting corporate governance of sustainability,” Ogbechie added.
  
Managing Director, Ministry of Finance Incorporated (MOFI), Dr Armstrong Takang, emphasised the urgent need to rethink governance in SOEs, pointing out that their poor performance had long hindered the nation’s industrial growth.
  
He noted that if enterprises like the Bank of Industry, Nexim Bank, and others had delivered on their mandates, Nigeria’s current economic struggles would have been less severe.
  
“Success in these enterprises could have contributed to macroeconomic stability, controlled inflation, and created jobs. Their failures have, instead, left us grappling with inflation.”