The 2018 Revised Nigerian Code of Corporate Governance: An Academic Response and Lessons for Africa

Ozili, Peterson K (2023): The 2018 Revised Nigerian Code of Corporate Governance: An Academic Response and Lessons for Africa. Forthcoming in:

Abstract

This article points out the significant changes in the 2018 codes of corporate governance in Nigeria. This document also highlights our concern that the failure of the 2018 code to address some identified issues can have unintended consequences among firms and could harm the ease of doing business in Nigeria. In particular, the 2018 code gives the board significant powers but underestimate the board’s ability to misuse their power, which may lead to complacency on the part of senior management and may affect the long-term survival and performance of Nigerian firms. Also, the Financial Reporting Council of Nigeria has not considered how companies will react to the new regulations. These observations have important implications for African countries and their codes of corporate governance.

• Item Type: MPRA Paper
• Language: English
• Keywords: Corporate governance codes, Corporate Accountability, Nigeria Code of Corporate Governance, financial reporting.
• Subjects: M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M1 - Business Administration > M10 - General; M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M1 - Business Administration > M12 - Personnel Management ; Executives; Executive Compensation; M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M1 - Business Administration > M14 - Corporate Culture ; Diversity ; Social Responsibility; M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M1 - Business Administration > M19 - Other

References

Abdulmalik, S. O., & Ahmad, A. C. (2016). Corporate Governance and Financial Regulatory Framework in Nigeria: Issues and Challenges. Journal of Advanced Research in Business and Management Studies, 2(1), 50-63.

Adegbite, E. (2013). ‘Corporate governance in Nigeria: Messes, problems, and puzzles’ Business

Adekoya, A. A. (2011). Corporate governance reforms in Nigeria: Challenges and suggested solutions. Journal of Business Systems, Governance and Ethics, 6(1), 38-50

Aguilera, R. V., & Cuervo‐Cazurra, A. (2009). Codes of good governance. Corporate Governance: An International Review, 17(3), 376-387.

Akpan, E. S., & Riman, H. B. (2012). Does corporate governance affect bank profitability? Evidence from Nigeria. American International Journal of Contemporary Research, 2(7), 135-145.

Babatunde, M. A., & Olaniran, O. (2009). The effects of internal and external mechanism on governance and performance of corporate firms in Nigeria. Corporate ownership & control, 7(2), 330-344.

Coles, J. W., & Hesterly, W. S. (2000). Independence of the chairman and board composition: Firm choices and shareholder value. Journal of Management, 26(2), 195-214.

Cromme, G. (2005). Corporate governance in Germany and the German corporate governance code. Corporate Governance: An International Review, 13(3), 362-367.

Danielsson, J., Embrechts, P., Goodhart, C., Keating, C., Muennich, F., Renault, O., & Shin, H. S. (2001). An academic response to Basel II. Special Paper-LSE Financial Markets Group. URL: https://www.riskresearch.org/files/DanielssonGoodhartShin2001.pdf Retrieved April 10, 2020.

Ehikioya, B. I. (2009). Corporate governance structure and firm performance in developing economies: evidence from Nigeria. Corporate Governance: The international Journal of Business in Society, 9(3), 231-243. https://doi.org/10.1108/14720700910964307

EUROBATS Secretariat. (2004). EUROBATS: The Agreement on the Conservation of Populations of European Bats. Retrieved April 1, 2009, from http://www.eurobats.org/index.htm

Dabor, A. O., Isiavwe, D. T., Ajagbe, M. A., & Oke, A. O. (2015). Impact of corporate governance on firms’ performance. International Journal of Economics, Commerce and Management, 3(6), 634-653.

Foyeke, O. I., Iyoha, F. O., & Ojeka, S. (2015). Firm size and financial performance: A determinant of corporate governance disclosure practices of Nigerian companies. Journal of Accounting and Auditing: Research & Practice.

Isaac, J. E., & Nkemdilim, I. S. (2016). Corporate governance and the performance of Nigerian banks. International Journal of Economics, Finance and Management Sciences, 4(2), 39- 45.

Itami, H. (2005). Revision of the commercial code and reform of the Japanese corporate governance. Japan Labor Review, 2(1), 4-25.

Kajola, S. O. (2008). Corporate governance and firm performance: The case of Nigerian listed firms. European Journal of Economics, Finance and Administrative Sciences, 14(14), 16- 28.

Knechel, W.R. and Sharma, D.S. (2012). Auditor-provided non-audit services and audit effectiveness and efficiency: Evidence from pre-and post-SOX audit report lags. Auditing: A Journal of Practice & Theory, 31(4), 85-114. https://doi.org/10.2308/ajpt-10298

Koldertsova, A. (2011). The second corporate governance wave in the Middle East and North Africa. OECD Journal: Financial Market Trends, 2010(2), 219-226.

McCarthy, D., & Puffer, S. (2002). Corporate Governance in Russia: towards a European, US, or Russian Model? European Management Journal, 20(6), 630-640.