Alhaji Tijjani M. Borodo, LLM, F.

IoD
President/Publisher

Editorial Team:
1. Mr. Dele Alimi, M.IoD – Editor-in-Chief
2. Mr. Sunday Adenipekun, M.IoD - Deputy Editor-in-Chief
3. Dr. Ibrahim Adekunle - Editor
4. Dr Segun Alabi – Associate Editor
5. Mr. Kene Nwanegbo, AM.IoD – Member
6. Ms. Tolulope Ajayi – Member
7. Ms. Ovos Onogoro – Member
Our great nation enetered a new phase of leadership under
8. Mr. Mudiaga Aluya- Member

All members of the Chartered Institute of Directors

Nigeria,

Director General, Chartered Institute of Director

Nigeria are encouraged to make professional
contributions to this publication in form of articles,
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Such contributions of not more than a thousand

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Director General/CEO Chartered Institute of Directors Nigeria
 24 40

CONT
An Exclusive Interview with Alhaji Tijjani m.
Borodo, LLM, F.IoD, President and Chairman of
Governing Council, CIoD Nigeria
Navigating the Intersection
and Board Directorship: Im
Governance in Nigerian O

06 PAGE 06 -Abraham Durosawo, ARM

Treasurer, Young Director
Directors
Mastering Corporate Governance in an Era of PAGE 28
Transformation: Thriving Amidst Exchange
Unification and Fuel Subsidy Reform
-Ibrahim A. Adekunle, PhD Enhancing Board Effective
PAGE 12 Management in President
Era: The Role of Human R
-Dr Valerie Onyia Babatop
PAGE 34
"Navigating Nigerian Business Contracts Amid
Changing Governance": A Guide for Non-Lawyers
-'Dara Lawal Ways a Company Director
PAGE 20 Leader in a Disruptive Eco
-Orienru Igho Otejiri
PAGE 40
Chief Supply Chain Oceffir in the C-Suite: The
Imperative for Nigerian Companies
-Arinze Oduah FCIPS, M.IoD
PAGE 24

20 12

TENTS
n of Artificial Intelligence
mplications for Corporate
Organizations
M Securities Limited
rs' Forum, Institute of
eness and Talent
Bola Ahmed Tinubu's
Resource Management
pe
r can Become an Effective
onomy.
44
"The Future of Stakeholder Capitalism: Embracing
Technology and Connectivity for Stakeholder
Engagement"
-Mrs. Celine Okoroma-Vincent FIMC, ACIS, CMS
PAGE 44
Gender Stereotyping and Its Impact on Corporate 67
Governance: A Call for Equal Opportunities
-Mudiaga Aluya
PAGE 50
Social Capital in Organisations & Society
-DR. NELSON M. ANUMAKA
B.Sc. MBA, DBA (Swiss), ACIS, FCIB, FCA, CPFA
34
(London), M.IoD.
Managing Consultant, NMA Consulting
PAGE 54
Exploring the role of employers
in facilitating retirement savings
-Pension Fund Operators Association of Nigeria
(PenOp)
PAGE 67
28
 An Exclusive Interview with Alhaji Tijjani M. Borodo, LLM, F.IoD,
President and Chairman of Governing Council, CIoD Nigeria

An Exclusive Interview with Alhaji Tijjani M.

Borodo, LLM, F.IoD, President and Chairman
of Governing Council, CIoD Nigeria

In this interview, Alhaji Borodo reels out his Plans

to Reposition the Institute

6

in Corporate Governance and
advocate for policies and
practices that foster growth and
innovation. This would be built
on my “Three-Point Agenda”
which I tag, Review, Reform and
Reinvigoration. CIoD Nigeria's
Membership status will change
now due to the chartership of the
Institute. This is necessary in
view of the emerging dynamics
of CIoD Nigeria operations. In
this new administration, our
focus will be on the review of the
existing corporate strategy,
reform of our membership and
branch development status and
reinvigoration of our operations
to better serve our valued
members.
The issue of entrenchment of
sound corporate governance
culture had largely been
adopted by the organisations in
the private sector, the same
cannot be said for public sector
institutions. What would be the
role of the institute under your
leadership to drive adoption of
sound corporate governance
practices particularly by civil
servants to build stronger
institutions?
For almost a decade not, CIoD
Nigeria had realised the need to
involve the public sector in the
crusade for good corporate
governance. We have worked
with the various necessary
organs and offices of
government to hold capacity
development programmes that
would enhance the knowledge of
An Exclusive Interview with Alhaji Tijjani M. Borodo,
LLM, F.IoD, President and Chairman of Governing
public sector officials about
Corporate Governance. This has
resulted in a large number of
directors and executives of
ministries, departments and
agencies of government joining
the Institute. Not only are we
doing it at the national level, but
we are also working with the sub-
nationals and bringing them into
the Institute.
Let me assure you that plans are
still underway to establish more
mutually beneficial partnerships
and widen our network of
collaboration with the public
sectors, with the view to
entrenching sound corporate
governance practices that will
position the Nigerian economy
on the path of growth. At CIoD
Nigeria, we believe that synergy
between corporate Nigeria and
the government can produce
better results in the area of
corporate governance. It is by
achieving this that we can
encourage investor confidence,
which in turn, will bring about
the much-desired foreign direct
investment to the economy. I can
boldly say that CIoD Nigeria is
fully ready to take the lead and
drive this initiative.
The place of succession
planning in business cannot be
overemphasized. However,
Micro, Small and Medium
Enterprises (MSME) do not fully
grasp the dynamics seeing that
their business models appear
small, what is your advice to
them?
IO
Council, CIoD Nigeria
Just as you said, the importance
of succession planning cannot
be overemphasized. To my
mind, I believe that all
organisations, the size
notwithstanding, should have a
feasible strategic succession
plan in place to ensure business
sustainability. This will enable
the business to grow and have a
positive impact on the bottom
line. To be able to achieve this,
organisations must imbibe the
culture of mentoring the next
generation of leaders. This is
already being practiced in CIoD
Nigeria through the Young
Directors Forum, a platform for
nurturing the leadership and
directorship skills of young
professionals.
The role of gender and youth
diversity on boards of
organisations and the political
space has been much talked
about. While action has begun
following the talks, the gender
gap is still very wide. What
plans do you have to address
this to engender inclusivity?
Addressing diversity on boards
of organisations and in the
political space is a critical
priority. Diversity can be in
terms of age, gender,
profession, etc. The issue of
diversity has no doubt been
brought to the consciousness of
all stakeholders and I must
confess that progress has been
made. However, much more
can still be done as it is obvious
www.iodnigeria.org 7
 An Exclusive Interview with Alhaji Tijjani M. Borodo, LLM, F.IoD,
President and Chairman of Governing Council, CIoD Nigeria

that there are gaps that need to organisations and political these challenges:
be addressed. More needs to be entities, urging them to actively
done to foster better inclusivity. pursue balanced representation Inflation Management:
of women and youth on their The monetary policy reforms
Our Institute is quite conscious boards. We can create targets undertaken by the current
of this need and that is why we and hold these entities administration should
have tried to show examples by accountable. incorporate a social dimension
creating platforms that will which the administration is
enhance diversity and We will consciously address the currently finalising in the form
inclusiveness. For example, our building of a pipeline of qualified of palliatives to cushion the
Young Directors Forum is meant women and youth who are effect of the rising cost of
to provide the necessary tutelage prepared for leadership roles. living. By collaborating with the
and mentorship to young and This could include mentorship Central Bank of Nigeria to
aspiring directors and c-suite programs, leadership implement prudent monetary
executives and prepare them for development initiatives, to policies that manage inflation
bigger responsibilities. support women and young without stifling economic
individuals in gaining the growth, the government can
In addition, our Women necessary skills and experience. encourage a balance between
Directors Development price stability and economic
Committee has worked expansion to ensure a
assiduously in the past years to conducive environment for
cater to the peculiar needs of businesses to thrive.
In view of the current economic
female directors through gender-
realities beguiling the country Foreign Exchange Rates:
specific programmes, mentoring
such as inflation, high foreign Work on diversifying the
programmes, coaching etc.,
exchange rates, insecurity, economy by promoting our
specially targeted at female
inadequate power supply, and non-oil sectors such as
members of the Institute. These
unemployment among others, agriculture, technology, and
have contributed immensely to what is your advice to the
the development of our women manufacturing. Encourage
government to address these foreign direct investment and
directors and given them more challenges sector by sector?
confidence to perform their improve the ease of doing
roles as directors. business to attract capital
inflow, thereby stabilising
I share the majority of concerns foreign exchange rates. The
To further reinforce past efforts, about the current state of affairs
the Institute under my need to make FX available in
and the multifaceted issues of the bank is essential to the
leadership, will initiate inflation, high foreign exchange
educational campaigns, unification of exchange rates, if
rates, insecurity, inadequate not the premium on the black
seminars, and workshops to power supply, and
highlight the advantages of market will continue to shift.
unemployment. I believe that
diverse boards, which include, addressing these challenges Insecurity:
better decision-making, requires a comprehensive and
innovation, and better The government needs to
multi-faceted approach, taking strengthen law enforcement
representation of stakeholder into consideration each sector's
perspectives. agencies and invest in
unique characteristics and needs. intelligence gathering and
Here, I outline some sector- sharing. Collaborate with local
Also, we will set clear diversity specific recommendations that
goals and establish clear and communities to foster
could contribute to tackling grassroots security initiatives.
measurable diversity goals for

8 www.iodnigeria.org

Engage in diplomatic efforts to
promote regional cooperation in
counter-terrorism activities like
the situation in Niger who are
our neighbours.
Power Supply:
Prioritize investment in energy
infrastructure, both conventional
and renewable, to ensure a
consistent and reliable power
supply. Facilitate public-private
partnerships to expedite the
expansion and modernization of
the energy sector.
Unemployment:
Promote skills development and
vocational training programs that
align with industry demands.
Encourage entrepreneurship and
support small and medium-sized
enterprises (SMEs) to create job
opportunities and stimulate
economic growth.
It is important to note that these
recommendations are not
exhaustive and must be adapted
to the evolving economic
landscape. As CIoD, Nigeria's
President, I am committed to
fostering dialogue and
collaboration with government
agencies, private enterprises, civil
society, and international
partners to collectively address
these challenges. Through
strategic partnerships and a
shared vision for progress, I am
confident that we can make
significant strides in steering our
nation toward a more prosperous
future.
An Exclusive Interview with Alhaji Tijjani M.
Borodo, LLM, F.IoD, President and Chairman of Governing
Council, CIoD Nigeria
The use of Information and ii. Remote Collaboration:
Communication Technology ICT facilitates seamless
(ICT) in our daily lives and communication and
businesses is unprecedented. collaboration among
How would this impact the board members,
future of work for directors and irrespective of their
what is your advice to directors geographic locations.
as they leverage technology in Virtual meetings, digital
the running of their operations? platforms, and
collaborative tools
Indeed, the pervasive influence of empower directors to
Information and Communication engage effectively without
Technology (ICT) has ushered in the constraints of physical
a new era of possibilities, presence.
transforming the way we conduct
our daily lives and manage iii. Enhanced Board
businesses. As directors, it is Governance: Technology
imperative that we recognise and supports improved
embrace the profound impact of transparency and
technology, not only on our accountability by providing
operations but also on our comprehensive insights
strategic decision-making and into organisational
leadership approaches. performance. This allows
directors to fulfil their
The Future of Work governance
for Directors: responsibilities more
effectively.
The integration of ICT is
redefining the role of directors iv. Innovation and
and the way boards oversee their Disruption: Directors must
organisations. This digital anticipate and respond to
transformation has several technological disruptions
implications for the future of that impact their
work in the boardroom which industries. Embracing
includes innovation and fostering a
culture of continuous
i. Data-Driven Decision- learning will be essential
Making: Directors now to remain competitive.
have access to a wealth of
data and analytics that can Advice for Directors
inform strategic decisions. as They Leverage
The ability to analyse
Technology:
market trends, customer
behaviour, and operational
While embracing technology
performance in real time
offers numerous opportunities,
enables more informed and
it also presents unique
agile decision-making.
challenges. Directors need to
www.iodnigeria.org 9
IO An Exclusive Interview with Alhaji Tijjani M. Borodo, LLM,
F.IoD, President and Chairman of Governing Council, CIoD
Nigeria

stay educated. With technology By nurturing a generation of designing clear career

evolving rapidly, Directors skilled and competitive development pathways that
should commit to ongoing professionals, we can create an offer opportunities for growth,
education about emerging environment that encourages skill enhancement, and
technologies, their applications, them to remain in Nigeria. Also, leadership roles within
and potential risks to ensure boards and government bodies organisations, young talents
informed decision-making. The should collaborate to create an can be incentitised to remain
need to foster a Tech-Savvy enabling environment for committed to their careers in
Board Culture ensues to entrepreneurship and Nigeria.
encourage a culture of innovation. This includes access
technological curiosity within the to capital, mentorship programs,
boardroom. Directors should be and streamlined regulatory
open to learning and processes that empower young
experimenting with new tools entrepreneurs to build successful
and solutions. Nonetheless, businesses at home.
The issue of fuel subsidy has
cybersecurity Vigilance needs to
The need for adequate further led to a decline in
be heightened. With increased
infrastructure, including reliable purchasing power of
reliance on technology comes
power supply, efficient Nigerians. Many
heightened cybersecurity risks.
transportation, and robust organisations have had to
Directors should have
technological connectivity, is shut down, others have
cybersecurity awareness, reduced staff and taken other
protocols, and risk mitigation crucial for economic growth and
job creation. By improving our measures to stay afloat or
strategies. remain profitable. In what
infrastructure, we can enhance
the attractiveness of Nigeria as a capacity can the government
place to live and work for our step in to mitigate the impacts
young generations. This will on the citizens? What advice
help inclusive practices within do you have for organisations
organisations that have the to manage development?
The 'Japa' trend and the
compelling future of work for potential to create a sense of
belonging for young talents. The government should
Nigerians is on the increase.
Diverse and inclusive introduce or strengthen social
Many talents are leaving to
environments foster creativity, safety net programs to provide
develop other climes. How do
innovation, and personal targeted support to vulnerable
we halt and reverse the trend
growth, which are key factors in citizens adversely affected by
as a country? What role do
retaining local talent. fuel subsidy reductions. This
boards have to play to
could include direct financial
encourage the youth to stay
back and build the nation? We need boards to establish assistance, food subsidies, and
mentorship programs that healthcare provisions to
connect experienced alleviate the immediate
To halt and reverse the 'Japa'
professionals with young talents hardships just like the palliative
Trend, there is a need for
such as the Young Development initiatives that are currently
responsible governance on
Forum (YDF), a CIOD initiative. being developed. It is also
Quality Education and Skill
Such interactions provide important that the government
Development. It is imperative to
valuable guidance, insights, and set a clear agenda about policy
invest in high-quality education
networks that can inspire the predictability as such clarity and
and skill development programs
youth to stay and contribute to predictability in economic
that align with the evolving
the nation's development. By policies are crucial for business
demands of the global economy.

10 www.iodnigeria.org
 An Exclusive Interview with Alhaji Tijjani M.
Borodo, LLM, F.IoD, President and Chairman of Governing IO
Council, CIoD Nigeria

planning and investment. The IoD Nigeria recently held the

government should communicate
transparently about policy
changes, allowing businesses to
adjust their strategies accordingly
and minimise disruptions.
In addition, the government
should prioritize investment in
critical sectors such as
agriculture, manufacturing, and
infrastructure to stimulate
economic activity, create jobs,
and enhance purchasing power
over the long term. Exploring
and collaborating with the private
sector through public-private
partnerships (PPPs) to implement
initiatives that address economic
challenges can lead to innovative
solutions that support both
citizens and businesses.
foundation laying ceremony of
the CIoD Tower, an impressive
15-floor architectural
masterpiece, which is poised to
become the prestigious corporate
headquarters of our great
Institute. The Tower represents a
bold and visionary project that
harmonizes elegance,
functionality, and environmental
sustainability. When completed,
it promises to leave an indelible
mark on the city of Lagos,
reshaping the skyline and setting
a new standard in corporate and
residential architecture. The
fusion of sophistication,
modernity, and eco-
consciousness makes the CIoD
Tower an extraordinary symbol
of progress and innovation.
At IoD Nigeria, we place
premium value on our members
and staff. It is part of the plan
to invest in the human capital of
our great Institute. We intend to
strengthen our staff and
operations to enable us to
provide quality service to our
esteemed members. We have
invested in technology and
operations in our secretariat is
not digitalized and this helps to
reduce cost and improve
efficiency.
This would eventually lead to
the provision of better services
to the members and also
improve members' experience.

Other ways to economic relief is

to offer targeted support for
small and medium-sized
enterprises (SMEs) through
access to credit, capacity
building, and streamlined
regulatory processes. A thriving
SME sector can contribute
significantly to job creation and
economic resilience.

Forging ahead for the institute

under your tenure, kindly share
plans for the CIoD house, staff,
value adding propositions for
members. Also, share plans for
proposed collaborations and
partnerships with like-minded
institutions to continue to
advocate sound corporate
governance practices in the
country.

www.iodnigeria.org 11
 Mastering Corporate Governance in an Era of
IO Transformation: Thriving Amidst Exchange Uniication
and Fuel Subsidy Reform

Mastering Corporate Governance

in an Era of Transformation:
riving Amidst Exchange
Uni cation and Fuel Subsidy Reform
-Ibrahim A. Adekunle, PhD

1.0 Introduction internationally, and it is integral removal of fuel subsidies, the

to attracting investment, business community found itself
In the ever-evolving landscape of fostering growth, and ensuring at a crossroads with many
Nigeria's business world, long-term prosperity. As Nigeria businesses still grasping the
corporate governance stands as embarked on the journey of realities and the heightened
a cornerstone of responsible and exchange rate unification and the tensions accrued.
sustainable business practices. It
is the compass that guides
organisations, ensuring
transparency, accountability,
and ethical conduct. However,
the Nigerian business landscape
is not immune to change, and
recent seismic shifts in economic
policies led by President Bola
Ahmed Tinubu, and the GCFR
administration have reshaped
the terrain with new expectations
and implications for businesses
nationwide. The significance of
corporate governance in
Nigeria's business ecosystem
cannot be overstated. It forms
the bedrock upon which trust is
built, both locally and

12 www.iodnigeria.org

In this article, we delve into the
multifaceted relationship between
corporate governance and these
pivotal policy changes. We
explore the challenges and
opportunities that have emerged
in the wake of exchange rate
unification and fuel subsidy reform
since the pronouncement by
President Bola Tinubu, GCFR's
led administration made their
policy direction obvious. More
importantly, we provide
actionable strategies that
businesses can adopt to not only
navigate this new corporate
governance landscape but also
thrive within it.
In our understanding and
adaptation, it becomes evident
that corporate governance is not
merely a compliance requirement;
it is a compass that can guide
businesses to new heights amidst
the changing winds of policy
reform.
2.0 Understanding the
Landscape
Exchange Rate Unification
Exchange rate unification is a
monumental shift in Nigeria's
economic policy. Previously,
Nigeria maintained multiple
exchange rates, leading to
distortions and inefficiencies in the
market. The move towards a
unified exchange rate aims to
create a more transparent and
predictable foreign exchange
market. This change impacts
businesses in several ways.
i. Volatility: The unification
Mastering Corporate Governance in an Era of
Transformation: Thriving Amidst Exchange Uniication
process may lead to short-
term currency volatility,
affecting import costs,
financial planning, and risk
management for businesses
engaged in international
trade.
ii. Cost Implications:
Fluctuations in the exchange
rate can directly impact the
cost structure of businesses,
particularly those heavily
reliant on imported raw
materials or equipment.
iii. Supply Chain Disruptions:
Companies with complex
supply chains may
experience disruptions due
to currency fluctuations
affecting the procurement of
goods and services from
overseas suppliers.
Fuel Subsidy Removal
Fuel subsidy removal is another
significant policy shift with
profound implications.
Historically, fuel subsidies have
eased the burden on consumers
IO
and Fuel Subsidy Reform
but strained government
finances. Removal of these
subsidies aims to redirect
resources toward critical
infrastructure and development
projects. For businesses, this
change brings about;
i. Cost Pressures: The
removal of fuel subsidies
may lead to increased fuel
prices, affecting
transportation, logistics,
and operating costs for
businesses reliant on fuel.
ii. Inflationary Pressures:
Higher fuel prices can
contribute to overall
inflation, impacting
consumer demand and
affecting pricing strategies
for businesses.
iii. Environmental and
S u s t a i n a b i l i t y
Considerations: As fuel
prices rise, there may be an
increased incentive for
businesses to explore
alternative energy sources
and adopt more sustainable
www.iodnigeria.org 13
 Mastering Corporate Governance in an Era of
IO Transformation: Thriving Amidst Exchange Uniication
and Fuel Subsidy Reform

practices.

3.0 Connecting
Corporate Governance
and Policy Changes

Direct Connections:

1. Regulatory Compliance
and Reporting

Transparency and
Accountability:
Sound corporate governance
principles require companies
to maintain transparency and
accountability in their
operations and financial
reporting. This aligns with
the need for businesses to
adhere to new regulations
stemming from policy
changes, such as enhanced
reporting requirements
related to currency exchange
rates and fuel costs. The new
IFRS S1 and S2 financial
reporting guideline which set
off in January 2024 is an
example of how the changing
governance and policy 2. Risk Management and
framework forces changes in Oversight Board Oversight: Boards of
how businesses operate to Directors play a pivotal role
give visibility to business Risk Assessment: in risk oversight. They must
performance and operations. Corporate governance adapt their oversight
structures often include risk strategies to address new and
Compliance Frameworks: assessment and evolving risks posed by
Effective corporate management processes. policy changes.
governance involves These processes can help
establishing robust businesses identify and Indirect Connections:
compliance frameworks. In mitigate risks associated with
response to policy changes, currency fluctuations, 1. Investor Confidence and
businesses must ensure that increased operating costs Trust
their operations are in due to fuel price changes,
alignment with updated legal and market uncertainties Transparency: Strong
and regulatory requirements. resulting from economic corporate governance
reforms. practices boost

14 www.iodnigeria.org

transparency, which is vital
for building investor trust.
Investors are more likely to
support businesses that
provide clear and honest
disclosures regarding the
impacts and strategies related
to policy changes.
Risk Mitigation: Investors are
attracted to companies that
demonstrate the ability to
identify, assess, and mitigate
risks effectively. Corporate
governance practices that
emphasise risk management
can enhance investor
confidence in uncertain times.
2 Long-Term Sustainability
Adaptive Governance:
Effective corporate
governance is not static; it
evolves to meet changing
circumstances. Businesses
that adapt their governance
practices to navigate policy
changes are better positioned
for long-term sustainability.
Resilience: Robust
governance structures
promote resilience, enabling
companies to weather
economic uncertainties and
reforms more effectively,
ultimately safeguarding
stakeholder interests.
3. Stakeholder Relations
Open Communication:
Corporate governance
encourages open
communication with
stakeholders, including
shareholders, employees, and
Mastering Corporate Governance in an Era of
Transformation: Thriving Amidst Exchange Uniication
customers. In the context of
economic reform, transparent
communication about the
company's response to policy
changes can help manage
expectations and maintain
positive relationships.
4. Reputation Management
2. Cost Fluctuations
Ethical Conduct: Strong
corporate governance
emphasises ethical conduct.
Maintaining ethical standards
is crucial during economic
reform, as it can help preserve
a company's reputation even
in challenging circumstances.
4.0 Key Challenges and
Opportunities
The convergence of exchange
rate unification and fuel subsidy
removal ushers in a new era for
businesses in Nigeria, replete with
both challenges and
opportunities.
Challenges:
3. Increased Competition
1. Currency Volatility
Immediate Impact: The
unification of exchange rates
has led to short-term currency
volatility, exposing businesses
to fluctuating exchange rates
as dollar supply remains
unavailable causing the
premium to change. This
volatility can affect the cost of
imported goods, increase
financial uncertainty, and
disrupt international trade
agreements.
IO
and Fuel Subsidy Reform
Risk Management:
Businesses must implement
robust risk management
strategies to hedge against
adverse currency
movements, which can
erode profitability and create
budgetary uncertainties.
Fuel Price Variability: The
removal of fuel subsidies
resulted in increased fuel
costs. This continues to
affect the transportation,
logistics, and operational
expenses of businesses
heavily reliant on fuel for
their operations.
Supply Chain Disruptions:
Companies with complex
supply chains experience
disruptions due to rising fuel
costs, impacting the
procurement of goods and
services from both domestic
and international sources.
Diversified Market: As
economic reforms progress,
industries may witness an
influx of new entrants and
increased competition,
especially in sectors
previously protected by
subsidies. Businesses will
need to adapt to this
heightened competitive
environment.
Innovation Imperative: To
stand out in this competitive
landscape, businesses must
focus on innovation,
www.iodnigeria.org 15
 Mastering Corporate Governance in an Era of
IO Transformation: Thriving Amidst Exchange Uniication
and Fuel Subsidy Reform

Businesses can explore

export opportunities,
diversifying revenue
streams.

Foreign Exchange
Earnings: Export-oriented
businesses may benefit from
increased foreign exchange
earnings, enhancing their
financial stability and global
presence.

3. Regulatory Reforms

efficiency, and cost-
effectiveness to maintain
market share and
profitability.
Opportunities:
1. Access to a Stable Economic
Environment
2. Export Potential
Predictability: Exchange
rate unification aims to create
a more predictable and stable
foreign exchange market.
This can be advantageous for
businesses planning long-
term investments and trade
agreements.
Investment Climate: A stable
economic environment can
attract both domestic and
foreign investments, leading
to potential growth
opportunities for businesses
across various sectors.
Competitive Exports: A
more competitive exchange
rate can boost exports by
making Nigerian products
and services more attractive
to foreign markets.
Policy Advocacy:
Businesses can actively
engage with policymakers to
advocate for regulatory
refor ms that support a
conducive business
environment, addressing
concerns and enhancing
their competitive position.
Economic Diversification:
Economic refor ms may
encourage diversification
away from fuel-dependent
industries, creating
opportunities for businesses
to explore alternative
sectors and partnerships.
4. Sustainable Practices
Energy Efficiency: Rising
fuel costs have begun
incentivising businesses to
invest in energy-efficient
practices and explore
renewable energy sources,
reducing operational
e x p e n s e s a n d
environmental impact.
Corporate Responsibility:
Businesses can strengthen
their corporate social

16 www.iodnigeria.org

responsibility initiatives,
aligning with sustainability
goals and attracting
environmentally conscious
consumers.
5.0 Strategies for
Thriving
Adapting Corporate
Governance Practices
In the face of these policy
changes, adapting corporate
governance practices becomes
paramount for businesses seeking
not only to weather the immediate
challenges but also to position
themselves for long-term success.
So, along these lines of thought,
we examined some of the most
salient corporate governance
practices to show a clear
understanding of issues and
adaptation paths that can be
explored.
I Risk Management and
Compliance: Robust corporate
governance practices should
include comprehensive risk
management strategies that
account for currency and fuel price
fluctuations. Businesses must also
ensure compliance with new
regulations stemming from policy
changes.
ii Transparency and Reporting:
Transparent financial reporting
and disclosures are critical to
maintaining stakeholder trust.
Businesses should communicate
the impact of policy changes
clearly and proactively.
iii Governance Frameworks:
Mastering Corporate Governance in an Era of
Transformation: Thriving Amidst Exchange Uniication
Companies may need to review
and potentially revise their
governance frameworks to
accommodate the evolving
economic landscape. Boards of
Directors play a crucial role in
overseeing adaptation efforts.
iv Sustainability Initiatives:
Corporate governance should
increasingly incorporate
sustainability considerations,
including the transition to more
environmentally friendly practices
and ener gy sources as fuel
subsidies diminish.
6.0 Collaboration and
S t a k e h o l d e r
Engagement: Navigating
Regulatory Change
In the dynamic landscape of
economic reform in Nigeria,
collaboration and stakeholder
engagement take centre stage as
vital tools for businesses seeking
not only to adapt to the new
regulatory environment but also to
influence it positively.
Collaborating with government
agencies is crucial to align business
strategies with evolving
regulations. Engaging proactively
enables businesses to understand
policy intent and ensure
compliance. Establishing
constructive feedback
mechanisms fosters open dialogue
between businesses and
regulators. This dialogue can help
shape regulations that are more
practical and conducive to
business growth.
Industry associations provide a
IO
and Fuel Subsidy Reform
collective voice for businesses
within specific sectors.
Participating in these
associations allows companies to
collaborate on common
challenges, share best practices,
and advocate for sector-specific
policy changes. Industry
associations often have access to
valuable insights and information
on regulatory developments. By
being active members,
businesses can stay informed and
better prepared to navigate
changing regulations.
Engaging with local communities
and civil society organisations
demonstrates a commitment to
corporate social responsibility. It
can help build positive
relationships and mitigate
potential reputational risks
during times of regulatory
change. Stakeholder
engagement extends to investors
and shareholders. Transparency
in communicating how a
company navigates regulatory
changes can enhance investor
confidence.
Engaging with Policymakers
1. Advocacy Initiatives
Businesses can engage in
advocacy initiatives by partnering
with industry associations or
forming coalitions to present
unified positions on regulatory
reforms. Clear, data-backed
proposals can influence
policymakers' decisions.
Conducting research that
highlights the economic impact
of regulatory changes and
proposing evidence-based
www.iodnigeria.org 17
 Mastering Corporate Governance in an Era of
IO Transformation: Thriving Amidst Exchange Uniication
and Fuel Subsidy Reform
alternatives can be persuasive in
advocating for favourable
reforms.
2. Regulatory Consultations
Actively participating in
regulatory consultations
organised by government
agencies allows businesses to
provide input, express concerns,
and suggest amendments to
proposed regulations. Subject
matter experts within a business
can testify before relevant
legislative committees, sharing
industry-specific insights and
offering practical solutions.
3. Transparency and
Compliance
Maintaining a high standard of
corporate gover nance and
ethical conduct enhances a
company's credibility in
advocating for regulatory
reforms. Policymakers are more
likely to listen to businesses that
lead by example. Transparent
reporting of the company's
efforts in engaging with
policymakers and advocating for
reforms demonstrates a
commitment to regulatory
compliance and societal well-
being.
7.0 Conclusion
In summary, the article
underscores several critical
takeaways:
i. Adapting Corporate
Governance as a
Competitive Edge:
Adapting corporate
18 www.iodnigeria.org
governance practices is not
merely a response to
challenges but an
opportunity for businesses
to gain a competitive edge,
foster growth, and ensure
long-term sustainability.
ii. Navigating a Transformative
Landscape: In an era of
economic reform, mastering
corporate governance is
essential for businesses to
navigate a landscape
characterised by exchange
rate unification and fuel
subsidy removal.
iii. Challenges and
Opportunities Abound:
The article highlights that
while challenges such as
currency volatility, cost
fluctuations, and increased
competition are evident,
there are significant
opportunities as well,
including access to a more
stable economic
environment and the
potential for foreign
i n v e s t m e n t .
iv. The Role of Collaboration
and Stakeholder
Engagement: Collaboration
with government agencies,
industry associations, and
other stakeholders is key to
successfully adapting to
regulatory changes.
Engaging with policymakers
through advocacy initiatives
and consultations is a
proactive step businesses
s h o u l d t a k e .
v. Ethical and Transparent
Practices: Maintaining
ethical and transparent
corporate gover nance
practices is vital for building
trust and credibility, both
with regulators and
s t a k e h o l d e r s .
vi. Proactive Adaptation is
the Key: The article
encourages businesses to
proactively embrace these
changes and stay agile in
their approach to
corporate governance. It
emphasises that effective
governance is not static; it
evolves with the changing
landscape.
Adapting corporate
governance strategies is not
merely a defensive measure; it
is a strategic opportunity for
businesses to thrive, innovate,
and secure a sustainable future
in an evolving business
environment. Businesses are
encouraged to seize this
opportunity and proactively
shape their corporate
governance practices to meet
the demands of today's
dynamic marketplace.
19
 "Navigating Nigerian Business Contracts Amid Changing
IO Governance": A Guide for Non-Lawyers

"Navigating Nigerian Business Contracts Amid

Changing Governance”: A Guide for Non-Lawyers
-'Dara Lawal

Introduction
In the rapidly evolving landscape of Nigerian business, contracts serve as the cornerstones that
underpin successful transactions and partnerships. They define the terms, conditions, and obligations
between parties involved in a transaction or agreement.

As Nigeria enters into a new dispensation and experiences shifts in its governance dynamics, the
landscape in which businesses operate is undergoing transformative change. In light of this, grasping
and scrutinizing the contractual terms within contracts is no longer just advisable—it has become
imperative.
The metamorphosis of governance in Nigeria exerts a far-reaching impact, touching the very core of how
businesses operate, strategize, and thrive. Recent decisions such as the introduction of a unified foreign
exchange market and the removal of fuel subsidy stands as a testament to the swift and pivotal policy
shifts that can reshape economic ecosystems.

This article will delve into some of the implications that the shifting governance dynamic in Nigeria can
cast upon contracts, and how proactive measures can fortify these agreements and prevent businesses
from becoming complacent or unprepared. It will also outline the importance of non-lawyers being well-
versed in these terms to make informed decisions, ultimately affecting the success and compliance of
businesses operating in Nigeria.

The Business Impact of forward-looking perspective

assumes a position of utmost
Contractual Terms in significance, moulding contracts
an Evolving that not only align with legal
Governance Landscape standards but also serve as
resilient safeguards for
Contractual terms may vary enterprises confronting the fluid
depending on the contract's type, nature of challenges.
nature, and complexity. Amid
Nigeria's shifting governance Below are some key contractual
landscape, adopting a proactive terms that non-lawyers should
approach entails the foresight to carefully consider given the
anticipate potential conflicts, swiftly changing governance
discord, instances of non- environment in Nigeria:
performance, or breaches. This

20 www.iodnigeria.org

1 Payment Terms
A shift in governance dynamics
can directly impact payment terms
within a business contract due to
changes in economic policies,
regulations, and the overall
business environment. Here are
some examples of how it can
affect payment terms:
i. Currency Fluctuations:
Changes in governance,
such as alterations in
monetary policy or foreign
exchange regulations, can
lead to fluctuations in
currency exchange rates . If
a contract term stipulates
payments in a foreign
currency, the value of those
payments in the local
currency may change. This
can result in varying
amounts being received or
paid, impacting the financial
stability of both parties.
ii. Costs and Pricing: Policy
shifts, such as the removal of
fuel subsidies could lead to
higher operational costs for
businesses that rely on
transportation, machinery,
or fuel-intensive processes,
given the expected rise in
f u e l p r i c e s .
iii. Inflation and Pricing:
Changes in governance,
encompassing shifts in
monetary policy, fiscal
policy, exchange-rate
policies, supply-side policies,
price controls, subsidies, and
more can impact inflation
rates and cost structures.
Adverse effects may erode a
currency's purchasing
"Navigating Nigerian Business Contracts Amid Changing
Governance": A Guide for Non-Lawyers IO
power, diminishing the
actual value of payments.
This can lead to reduced real
value in fixed payments,
potentially straining the
receiving party financially.
iv. Ta x a t i o n C h a n g e s :
Alterations in governance
could lead to changes in tax
rates or tax regulations,
affecting the overall financial
impact of payments. For
instance, as evidenced by
recent executive actions,
President Ahmed Bola
Tinubu, GCFR recently governance might lead to a need
signed four executive bills to update and clarify what
d e f e r r i n g t h e constitutes a force majeure event
implementation of tax in accordance with the changing
changes and suspended legal landscape.
some specific taxes. This
policy shift is poised to 3. Termination Clause
reduce tax burdens on
businesses, consequently Changes in governance could
altering the overall financial impact the grounds and
consequences of payments. procedures for contract
termination. For instance, if
v. Financial Stability: A major new regulations affect the ability
shift in governance to import essential materials,
dynamics might lead to parties might need to modify the
economic instability or termination clause to account for
changes in credit availability. delays caused by such factors.
This can affect the ability of
one party to make payments 4. Intellectual Property (IP)
as per the agreed terms, Rights
potentially necessitating
discussions on revised Changes in intellectual property
payment schedules. laws can affect licensing
agreements and ownership
2. Force Majeure Clause terms. If Nigeria introduces new
IP regulations, it might lead to
New regulations or political renegotiating how IP rights are
instability could impact the force managed, shared, or transferred
majeure clause. This clause in commercial contracts.
outlines events beyond the parties'
control that might affect contract 5. Dispute Resolution Clause
performance. A shift in
www.iodnigeria.org 21
 "Navigating Nigerian Business Contracts Amid Changing
IO Governance": A Guide for Non-Lawyers
Shifts in gover nance might
influence the legal and regulatory
environment for dispute
resolution. Parties might need to
adjust the dispute resolution
clause to reflect any changes in
preferred methods of resolution,
court jurisdictions, or arbitration
rules.
6. Performance Guarantees
Changes in financial regulations
or credit availability might impact
the terms related to performance
guarantees or letters of credit.
Parties could need to review and
revise these terms to ensure they
comply with updated financial
regulations.
7. Supply Chain Disruptions
Following the fuel subsidy
removal, industries that depend
heavily on fuel for transportation,
such as logistics and distribution,
could experience disruptions in
their supply chains due to
increased fuel costs. This could
lead to delays or difficulties in
fulfilling contractual obligations,
potentially triggering penalty
clauses or discussions about
revised timelines.
8. Data Protection and Privacy
If data protection laws change in
Nigeria, it could impact how
personal and sensitive data is
handled. Contracts involving data
sharing or processing might
require revisions to ensure
compliance with the new data
protection framework.
9. Export and Import
22 www.iodnigeria.org
Regulations
Governance changes that impact
international trade agreements,
tariffs, or customs regulations can
affect the ter ms related to
payment, shipping, delivery, and
customs duties. For instance,
Nigeria's ratification of the
African Continental Free Trade
Area (AfCFTA) Agreement on
4th November 2020, has
prompted the development of
protocols, including Service
Trade Commitments by the
N a t i o n a l O f f i c e f o r Tr a d e
Negotiations (NOTN). Contracts
involving payments for tariffs and
trade in goods and services may
require adjustments to
accommodate these evolving
trade dynamics.
Proactive Measures for
Safeguarding Contracts
Amidst Policy Changes
As highlighted above, Nigeria's
evolving governance landscape
significantly impacts the terms of
business contracts. However, it is
pertinent to understand that the
impact on specific contract terms
will depend on the contract's
nature and the unique shifts
within Nigeria's evolving
governance landscape. In the
section below, we'll explore
proactive measures empowering
businesses to safeguard their
contracts amidst such policy
changes.
1. Currency Conversion
Mechanism
Specify a clear mechanism
for converting currency in
the contract. This could
involve using a particular
source for exchange rate
data or establishing a
formula for conversion to
adapt to future
changes.
2. Adjustment Clauses
Include clauses that outline
how payment terms will be
adjusted in response to
significant changes in
currency exchange rates or
government policies. This
can provide a structured
approach to managing
currency-related risks.
3. Force Majeure
Consideration
Address how changes in
government policies or
regulations will be treated
under the force majeure
clause. Determine whether
such changes could be
considered as triggering
force majeure events.
4. Renegotiation or
Amendment
Provisions that allow for
contract renegotiation or
amendment in the event of
significant policy changes
that impact currency rates
or other key contractual
elements. By including
such provisions, both
parties can proactively
address the potential
impacts of shifting
governance dynamics,

maintain compliance, and
reduce the risk of disputes
arising due to changes in the
regulatory landscape. It's a
way to ensure that the
contract remains relevant and
effective over time.
5. Dispute Resolution
Mechanism
Clearly outline the procedure
for resolving disputes arising
from policy changes. This
might involve mediation,
arbitration, or negotiation to
address disagreements related
to contract adjustments.
6. Governing Law and
Jurisdiction
Specify the governing law and
jurisdiction in the contract.
This can impact how policy
changes are interpreted and
how disputes are resolved.
7. Renewal and Review
Even if immediate impacts are
"Navigating Nigerian Business Contracts Amid Changing
Governance": A Guide for Non-Lawyers
not substantial, policy
changes might lead to a
broader economic shift that
affects the business
environment over time. When
contracts come up for
renewal, parties might need
to consider the new economic
reality and adjust ter ms
accordingly.
8. Severability Clause
A severability clause is
designed to ensure that if any
part of a contract is deemed
invalid or unenforceable due
to changes in laws or
regulations, the rest of the
contract remains valid and
enforceable. This clause helps
to prevent the entire contract
from being invalidated just
because one part of it
becomes non-compliant with
n e w g o v e r n a n c e
requirements. Including a
well-drafted severability clause
is a good practice to safeguard
the overall enforceability of
the contract, particularly in a
IO
changing legal landscape
where some clauses might
be impacted by shifts in
governance.
Ultimately, the key is to
anticipate potential policy
changes, consider various
scenarios, and draft contract
terms that provide flexibility
and clarity in adapting to
these changes while
ensuring the fair treatment
of all parties involved.
Consulting legal
professionals with expertise
in contract law and local
regulations can be highly
beneficial when navigating
such complex situations.
Conclusion
In the intricate dance of
commerce and governance, it is
those who pay heed to the
nuances of contract language
who emerge as the true
architects of their destiny. In the
context of Nigeria's evolving
governance landscape, it is
imperative for non-lawyers and
businesses to invest in
understanding contract language
a n d its i m p l ic a t io n s . T h i s
knowledge not only helps them
avoid potential pitfalls but also
allows them to build stronger
relationships and foster
sustainable growth in an ever-
changing business environment.
While the provided sources
indirectly contribute to this
understanding, the importance
of contract literacy remains
paramount for anyone engaged
in commerce within Nigeria.
www.iodnigeria.org 23
 Chief Supply Chain Oficer in the C- Suite: The
IO Imperative for Nigerian Companies

Chief Supply Chain Officer in

the C-Suite: e Imperative for
Nigerian Companies
-Arinze Oduah FCIPS, M.IoD

Introduction
Modern organisations are
perceive supply chain
becoming increasingly reliant on
management as a competitive
their supply chain networks to
differentiator have ensured that
Today, and for the fulfil their missions. This raises the
it is represented at the board
salience of supply chain
foreseeable future, management on their success or
level for focus. For instance, 85
of the S&P 500 companies have
supply chain failure. This reality is complicated
established the Chief Supply
management is at by the growing complexity of
Chain Officer (CSCO) position
supply chains involving many
the core of corporate at the C-suite level, and a 2021
interacting disciplines, systems,
Fortune magazine article
strategy and technologies, and processes that
referred to the CSCO as the
need to be understood, properly
competitiveness in toughest job in the C-suite.
structured, and strategically
both the managed for competitive
In Nigeria, this trend is not yet
advantage. It is no surprise
manufacturing and therefore, that an increasing
evident and represents an
opportunity space for forward-
service sectors. number of organisations have
thinking organisations to create
created the position of Chief
the Chief Supply Chain Officer
Supply Chain Officer (CSCO) at
position and establish it at the
the Executive Committee or
top table of policy and company
Board level to provide leadership
direction, that is, at the board
and strategic direction in this
level.
space.

Organisations that accurately

24 www.iodnigeria.org

Evolution of Supply Chain
Management (SCM) in
Corporate Governance
Supply chain management's role
in corporate governance stretches
back to the post-World War 2 era.
At that time, the emphasis was on
effective and efficient multi-modal
scheduling, execution and
coordination of transportation
and physical distribution.
Unsurprisingly, the governance
architecture was shaped by the
focus on kinetic operations.
Transportation and Physical
Distribution managers of that era
reported through a plant or
operations manager and were
typically two to three steps
Chief Supply Chain Oficer in the C- Suite: The
Imperative for Nigerian Companies
removed from the board.
The 80s through to the early
2000s witnessed the evolution of
supply chain management as an
integrated discipline at the heart of
business that encompasses the
planning and management of all
activities involved in sourcing and
logistics, and the interconnections
with supply chain managers at
various tiers. This drew supply-
chaining close to the centre of
business decision-making, and
with this reality, many
organisations created Executive
Management positions with a
remit for Supply Chain
Management. A few others went
further to establish the CSCO
position at the Director Level.
Even so, the trend was to have
IO
these positions report through
the Chief Financial Officer (CFO)
as the primary focus was mostly
on cost efficiency.
From the 2010s onwards, the
drive has been towards deeper
and more complex integration of
supply chain data flows enabled
by digitalization. Consolidating
and leveraging such data flows to
drive unprecedented
collaboration has become
essential to surviving the
increased globalised
competition. In order to remain
innovative and competitive, the
digitization of the supply chain
has become necessary and this
has confirmed supply chain
management as a strategic
differentiator. The clearest
www.iodnigeria.org 25
 Chief Supply Chain Oficer in the C- Suite: The
IO Imperative for Nigerian Companies
validation of this reality is in the
establishment of a CSCO position
at the C-Suite level to leverage the
supply chain's contribution to
corporate growth and
transformation.
The Current Situation in
Nigeria
It seems that many Nigerian
organisations have adopted one
of three sub-optimal options in
bringing supply chain
management issues to the top
table. In the industrial sector, the
trend is to merge all production,
physical distribution, and other
operational activities with supply
chain management under a Chief
Operating Officer (COO) who
reports to the Board. The COO's
primary focus is oftentimes on
short-term internal operational
efficiency and quality, especially
pertaining to ramping up
26 www.iodnigeria.org
productivity and eliminating
waste to deliver operating plans.
The resulting sub-optimality
reflects the inadvertent neglect of
long-term thinking and the failure
to tap into the potential for
innovation that supply chain
networks can bring.
In the services sector, the
tendency is to consider supply
chain management as a
corporate service that is a cost
centre, and which therefore
needs tight financial management
and controls. Organisations in
this space locate the role under a
Chief Financial Officer (CFO)
whose primary focus is cost
control. Again, this results in a
short-term focus on cost
reduction at the expense of the
vastly untapped potential for
business transformation that
supply chains can offer. In the oil
and gas sector, some companies
fall between the two options,
while others locate the role
within production. This
inadvertently restricts or
narrows the depth of influence
and transformative impact that
supply chains can deliver in
these organisations.
A way out of this dilemma of
sub-optimality is to recognise
the importance of the CSCO
and elevate it to the board level
to ensure that the organisation
derives the maximum
continuing benefit from its
internal and external supply
chain networks, resources,
systems and processes. For
instance, the CSCO will
leverage the total complex
supply chain, including
identifying and selecting the
right supply chain partners,
reconfiguring the supply chain
to outcompete peers, and
leveraging it as the source of
innovation, flexibility,
adaptability and resilience of the
 Chief Supply Chain Oficer in the C- Suite: The
Imperative for Nigerian Companies IO

enterprise. Thus, while the COO an “innovation fee.” These supply market to outcompete
ensures an efficient organisation, expenditures eventually became peers.
the CSCO ensures that it irrecoverable losses. These
continually functions on a exposures could have been The CSCO plays a key role in the
competitive basis. avoided if both companies had the battle for talent, and in leading
right competence in their through ceaseless innovation. By
SCM in the boardroom boardrooms – that of a CSCO. leveraging the enterprise's
supply chain networks he or she
Today, and for the foreseeable Going forward, CSCOs have can advance the objectives of
future, supply chain management come to stay, and the business ESG, secure digitalization,
is at the core of corporate strategy case for their value in the C-suite is supply risk management,
and competitiveness in both the being confirmed daily. They are business transformation and
manufacturing and service conduits for developing and continuity to achieve sustainable
sectors. Proceeding from this accelerating innovation and and profitable growth.
reality, it is important to ensure technology adoption through
direct supply chain management mutually beneficial SCM In summary, CSCOs are needed
representation in the boardroom. partnerships. They are essential in at the board level for the
Boards lacking in this critical balancing organisational agility invaluable contributions and
competence simply cannot with resilience in an increasingly diversity of perspectives that they
function optimally because SCM is volatile, uncertain, complex and can and do bring to corporate
central to strategy, organic and ambiguous world. It is one reason governance, as well as the
inorganic growth, and companies like Tesla and Apple leadership and direction they
competitiveness. continue to lead their peers today provide on the management of
because they have board-level supply disruption and associated
SCM is a driver of strategies that CSCOs that help them navigate risks.
take into account ESG and is an disruptive change in the external
effective way of ensuring diversity
of input and perspectives. Perhaps
many corporate scandals could
have been avoided if an SCM
voice was in the boardroom to
provide challenges and steers on
ethical procurement and deal-
making. The cases of Walgreens
vs. Theranos, and Safeway vs.
Theranos come readily to mind,
where the failure of the boards of
Walgren and Safeway, operating
without CSCOs, were blindsided
to the SCM risks they were taking
when they entered into
multimillion-dollar contracts with
Theranos for the supply of blood-
testing kits. While Safeway spent
almost $400 million in its 2010
contract with Theranos,
Walgreens paid Theranos $140
million, of which $100 million was

www.iodnigeria.org 27
 Navigating the Intersection of Artiicial Int elligence and Board
IO Directorship: Implications for Corporate Governance in
Nigerian Organizations

Navigating the
Intersection of

Arti cial
Intelligence and Board Directorship:
Implications for Corporate Governance in Nigerian
Organizations
-Abraham Durosawo, ARM Securities Limited
Treasurer, Young Directors' Forum, Institute of Directors

28 www.iodnigeria.org

Introduction
In 2018, the Financial
Reporting Council of Nigeria
(FRCN) released the Nigerian
Code of Corporate Governance
(NCCG), which sets out
guidelines and principles for
corporate governance in
Nigeria. The NCCG aims to
promote transparency,
accountability, and good
governance practices in Nigerian
companies. The emergence of
artificial intelligence (AI)
technology has had a significant
impact on corporate
governance worldwide, and
Nigeria is no exception. In
this article, we will explore
the implications of AI on
the NCCG 2018 and
how it affects
corporate
organizations in
Nigeria.
AI and the
Nigerian Code
of Corporate
Governance
The Nigerian Code of Corporate
Governance (NCCG) provides
guidelines and principles for the
governance of Nigerian
companies. The NCCG aims to
promote transparency,
accountability, and good
governance practices in Nigerian
companies. However, the
emergence of AI technology has
challenged traditional
governance practices and raised
Navigating the Intersection of Artiicial Int elligence and Board
Directorship: Implications for Corporate Governance in
Nigerian Organizations
IO
questions about how the NCCG and encourages the use of
can be applied in the context of technology to improve
AI. governance practices.
However, the NCCG does not
The NCCG 2018 recognizes the specifically address the use of
importance of technology in AI in governance practices.
corporate gover This means that companies
nance may be uncertain about how to
apply the NCCG in the context
of AI.
Overview of Artificial
Intelligence
Artificial intelligence (AI) is the
simulation of human
intelligence processes by
machines, especially computer
systems. AI has become a
ubiquitous technology in
modern business, and
it has been
employed in a
variety of
applications, such
as natural language
processing, machine
learning, deep
learning, robotics,
and many others.
AI has several
advantages for
businesses, such as
cost savings,
productivity
improvements,
operational
efficiency, and
increased revenue.
However, AI also
poses some challenges,
such as ethical
concerns, privacy
issues, data security,
and job displacement.
www.iodnigeria.org 29
 Navigating the Intersection of Artiicial Int elligence and Board
IO Directorship: Implications for Corporate Governance in
Nigerian Organizations

Artificial intelligence (AI) has to ensure that their data can also increase the risk
become a ubiquitous technology governance practices are of errors and security
in the modern business world. robust and comply with legal breaches. Companies need
AI has changed the way and ethical standards. to have robust risk
businesses operate and has Companies need to be management practices in
provided companies with new transparent about how they place to manage these
tools to enhance their collect, store, and use data risks.
competitiveness. The impact of to build trust with
AI on the board of directors and stakeholders. 5. Loss of Human Judgment
corporate governance has been
significant. With the advent of 2. Board Composition The use of AI can also lead
AI, the role of the board of to a loss of human
directors has become more The NCCG 2018 judgment. AI systems are
complex, and their decision- emphasizes the importance designed to make decisions
making process has been of board composition in based on data, but they
transformed. AI can be used to promoting good governance may not take into account
automate many governance practices. However, the the nuances of human
processes, which can improve emergence of AI has raised behavior or the emotional
efficiency and reduce costs. questions about the skills impact of decisions.
However, it can also raise ethical and experience required for
and legal concerns. A recent use board membership. 6. Impact on Employment
case implementation of AI is the Companies need to ensure
OpenAI ChatGPT. ChatGPT is that their boards have the The use of AI can also
currently being tested across the necessary skills and have an impact on
globe to improve the efficiency experience to oversee the employment. AI systems
and effectiveness of corporate use of AI technology. can automate many tasks,
governance processes. By leading to job
automating routine tasks and 3. Ethical and Legal Concerns displacement. This can
workflows, ChatGPT frees up have a significant impact
resources and enables decision- AI can raise ethical and legal on the workforce and the
makers to focus on strategic concerns, particularly in the community.
issues and value-added activities. context of decision-making.
Companies need to ensure
Implications of AI on that their AI systems are AI Considerations for
transparent, fair, and
corporate organizations unbiased. Companies also
Directors of Boards of
in Nigeria need to comply with legal Organizations in Nigeria
and regulatory requirements
The emergence of AI has for the use of AI. The board of directors plays a
significant implications for critical role in the governance
corporate organizations in 4. Risk Management and strategic direction of a
Nigeria: company. The board is
AI can be used to automate responsible for making
1. Data Governance many governance decisions that impact the
processes, which can company's long-term success,
AI relies on vast amounts of improve efficiency and such as setting strategic goals,
data to make decisions. This reduce costs. However, it hiring and firing executives,
means that companies need

30 www.iodnigeria.org

and overseeing the company's
financial performance. As such,
the impact of artificial
intelligence (AI) on the board of
directors has been significant.
The following are key AI
considerations for directors of
organizations:
1. AI increases Complexity of
Decision-Making Process
The use of AI has increased
the complexity of the board's
decision-making process. AI
has enabled companies to
collect and analyze vast
amounts of data, which has
provided the board with new
insights into the company's
operations. However, this
has also increased the
amount of data that the
board needs to process, and
they need to understand how
AI works to make informed
decisions.
For example, AI can be used
to analyze customer data and
identify trends in customer
behavior. This information
can help the board to make
decisions about product
development, marketing, and
customer service. However,
the board needs to
understand how the data was
collected, how it was
analyzed, and what
assumptions were made to
arrive at the conclusions.
2. AI improves Monitoring of
Company Operations
AI has enabled the board to
Navigating the Intersection of Artiicial Int elligence and Board
Directorship: Implications for Corporate Governance in
Nigerian Organizations
IO
monitor the company's Conclusion
operations more effectively.
The board can use AI to AI has had a significant impact
monitor the company's on corporate governance
financial performance, risk worldwide, and Nigeria is no
management, and exception. AI presents new
compliance with regulations. opportunities but also comes
AI can identify potential with its challenges. While
issues and alert the board to evaluating the benefits of the
take action. technology to the organization,
For example, AI can be used to companies need to ensure that
monitor the company's financial their data governance practices
performance in real-time, are robust, that their boards
allowing the board to identify have the necessary skills and
potential issues before they experience to oversee the use
become significant problems. AI of AI technology, and their AI
can also be used to monitor the systems are transparent, fair,
company's risk management and unbiased. Companies also
practices and identify potential need to comply with legal and
risks, such as fraud, cyber- regulatory requirements for the
attacks, and data breaches. use of AI and have robust risk
management practices in place
2. AI improves Strategic to manage the risks associated
Planning with AI.
AI has enabled the board to
improve the company's
strategic planning. The
board can use AI to analyze
market trends, identify
potential opportunities and
threats, and develop a
strategic plan that takes into
account the company's
strengths and weaknesses.
For example, AI can be used
to analyze customer data and
identify trends in customer
behaviour. This information
can help the board to
develop new products and
services that meet customer
needs. AI can also be used to
analyze market trends and
identify new opportunities
for growth.
www.iodnigeria.org 31
32
33
 Enhancing Board Effectiveness and Talent Management in President
IO Bola Ahmed Tinubu's Era: The Role of Human Resource Management

Enhancing Board Effectiveness and Talent

Management in President Bola Ahmed Tinubu's Era:
e Role of Human Resource Management

-Dr Valerie Onyia Babatope

valerieonyia@yahoo.com

The Bola Ahmed Tinubu era The adoption of robust

has ushered in a new wave of
governance and economic
development in Nigeria. As
organisations strive to thrive in
this transformative era, the
need to enhance board
effectiveness and talent
management becomes
paramount. This article delves
into the pivotal role of human
resource management (HRM)
in driving board effectiveness
and talent management and
explores strategies to optimize
organizational performance in
the Bola Ahmed Tinubu era.
The Evolving Landscape
of Corporate
Governance
governance frameworks,
accountability measures, and
transparency standards is
essential for organizations to
thrive in this era of change. By
focusing on improving board
effectiveness and talent
management, organizations
can strengthen their
governance structures and
foster sustainable growth.
The Role of Human
Resource Management
in Board Effectiveness
A. Selection and
The Bola Ahmed Tinubu era development of competent
presents an opportune time for
board members
organizations to reevaluate their
corporate governance practices. One crucial aspect of

34 www.iodnigeria.org
 Enhancing Board Effectiveness and Talent Management in President
Bola Ahmed Tinubu's Era: The Role of Human Resource Management IO

board effectiveness is the 2. Strengthening Board organizations can

selection and development of Independence and enhance
competent board members. Oversight: Robust transparency,
HRM plays a pivotal role in governance requires accountability, and
identifying individuals with boards to exercise ethical decision-
the right mix of skills, strong oversight and making processes.
expertise, and diversity to act independently from
form a well-rounded board. management. The 3. Implementing Effective
By leveraging HRM's separation of board and Risk Management
expertise in talent acquisition management roles Strategies: Effective
and management, ensures checks and risk management is a
organizations can ensure that balances, reducing the cornerstone of good
the board comprises risk of conflicts of governance. Boards
individuals who bring unique interest. By establishing must be equipped to
perspectives and insights to independent board identify, assess, and
the decision-making process. committees, mitigate risks to

Importance of Board
Effectiveness:

1. Embracing Diversity for

Better Decision-
Making:
To thrive in today's
dynamic business
environment,
organizations must
foster diverse
perspectives on their
boards. Research by
McKinsey (2018) has
shown that diverse
boards lead to better
decision-making and
improved financial
performance.
Embracing diversity in
board composition,
including gender,
ethnicity, and expertise,
brings a variety of
viewpoints that enrich
strategic discussions
and enhance overall
governance
effectiveness.

www.iodnigeria.org 35
 Enhancing Board Effectiveness and Talent Management in President
IO Bola Ahmed Tinubu's Era: The Role of Human Resource Management

protect organizational all levels, organizations

interests and
stakeholder value.
Establishing risk
management
frameworks, including
regular risk
assessments, clear
reporting mechanisms,
and proactive
mitigation strategies,
enhances board
effectiveness and
safeguards against
potential crises.
The Role of Talent
Management in
Corporate Governance:
build trust and uphold the
integrity of their
governance practices/
Lastly, effective governance
requires a strong
partnership between the
board and management.
HRM can facilitate open
communication channels,
promote collaboration, and
align board and
management interests. By
fostering a culture of trust
and cooperation,
organizations can harness
the collective expertise of
both board members and
management, leading to
more effective governance
practices.

Organizations thrive when they B. Strengthening Board 1. The composition of the

have a strong pipeline of
talented leaders. HRM plays a
pivotal role in identifying high-
potential individuals, providing
leadership development
programs, and nurturing future
board members. By cultivating a
culture of continuous learning
and professional growth,
organizations can ensure a
sustainable supply of capable
leaders who can guide the
organization through evolving
challenges. Ethical conduct and
accountability are also vital
components of effective
corporate governance. HRM
plays a crucial role in shaping an
organization's culture by
developing and implementing
robust codes of conduct, ethics
training programs, and
whistleblowing mechanisms. By
promoting transparency, ethical
behavior, and accountability at
Composition and
Succession Planning
Ensuring the right composition
of the board is crucial for
effective governance. HRM can
contribute by conducting regular
assessments of the board's
composition and identifying
areas for improvement.
Additionally, HRM can facilitate
robust succession planning
strategies to ensure a smooth
transition of leadership within
the organization (Reh, 2021).
By nurturing a pipeline of
potential board members and
grooming future leaders,
organizations can maintain
continuity and drive long-term
success.
Importance of Board
Composition
board significantly influences
decision-making,
organizational performance,
and stakeholder trust. An
effective board comprises
individuals with diverse skills,
expertise, and perspectives,
fostering a robust decision-
making process. HRM can
contribute by conducting
regular assessments of the
board's composition,
evaluating the mix of skills,
knowledge, and experience.
By identifying areas for
improvement, HRM enables
organizations to address any
gaps and enhance the
board's overall effectiveness.
2. Succession Planning for
Smooth Leadership
Transitions: Smooth
leadership transitions are
critical for organizational

36 www.iodnigeria.org

continuity and long-term
success. HRM plays a vital
role in facilitating robust
succession planning
strategies. By identifying
and nurturing potential
board members and
grooming future leaders,
HRM ensures a seamless
transition of leadership
within the organization.
Through targeted
development programs
and mentorship initiatives,
HRM helps individuals
acquire the necessary skills
and knowledge to assume
leadership roles effectively.
HRM plays a critical role in
strengthening board
composition and succession
planning. It leverages its
expertise in talent acquisition,
assessment, and development
to ensure that the board
Enhancing Board Effectiveness and Talent Management in President
Bola Ahmed Tinubu's Era: The Role of Human Resource Management
comprises individuals who
bring diverse perspectives and
relevant expertise. By actively
engaging in succession
planning, HRM nurtures a
pipeline of potential leaders
and prepares them for future
board positions. HRM's efforts
contribute to the continuity,
stability, and long-term success
of the organization.
C. Enhancing Board
Performance Evaluation
Regular performance
evaluations are instrumental in
identifying areas for
improvement and driving
board effectiveness. HRM can
design and implement
objective performance
evaluation processes that assess
board members' contributions
and effectiveness. Tricker (2015)
opined that through constructive
feedback and continuous
development initiatives, HRM
can support board members in
enhancing their skills and
knowledge, thereby enhancing
overall board performance. By
systematically assessing board
performance, organizations can
identify areas that require
attention and take proactive
measures to enhance board
effectiveness.
The Importance of
Performance Evaluation
1. Designing Objective
Performance Evaluation
Processes: HRM plays a
pivotal role in designing and
implementing objective
IO
performance evaluation
processes for the board. By
utilizing their expertise in
performance management
and measurement, HRM
professionals can ensure the
evaluation process is fair,
transparent, and aligned with
the organization's goals and
values. Objective criteria,
such as key performance
indicators (KPIs), can be
established to assess board
members' contributions in
areas such as strategic
planning, risk oversight, and
stakeholder engagement
(Charan, 2016).
2. Supporting Continuous
Development and
Improvement: HRM plays a
vital role in supporting board
members' continuous
development and
improvement. Constructive
feedback, coaching, and
mentoring are integral to
fostering a culture of
continuous learning and
growth. HRM professionals
can provide board members
with individualized
development plans, training
opportunities, and access to
resources that enhance their
governance capabilities.
The Role of Human
Resource Management
in Talent Management
A. Attracting and Retaining
Top Executive Talent
Talent management is a
critical factor in driving
www.iodnigeria.org 37
 Enhancing Board Effectiveness and Talent Management in President
IO Bola Ahmed Tinubu's Era: The Role of Human Resource Management
organizational success.
HRM plays a vital role in
attracting and retaining top
executive talent by
designing competitive
compensation packages
and providing opportunities
for professional growth. By
aligning talent management
strategies with the
organizational goals and
values, HRM can foster a
culture of excellence and
innovation.
B. Leadership Development
and Succession Planning
Developing strong leaders
and ensuring smooth
leadership transitions are
imperative for sustained
success. HRM can identify
high-potential individuals
within the organization and
provide them with tailored
leadership development
programs. By nurturing
future leaders and creating
a robust succession
planning framework,
organizations can maintain
stability and continuity in
their leadership ranks.
C. Fostering a High-
Performance Culture
A high-performance culture
is the bedrock of
organizational success.
HRM plays a pivotal role in
fostering a culture of
accountability, engagement,
and innovation. By
implementing effective
performance management
systems, providing regular
38 www.iodnigeria.org
feedback, and recognizing
and rewarding high
performers, HRM can drive
employee motivation and
productivity.
Conclusion
In the Bola Ahmed Tinubu era,
organizations must embrace the
imperatives of board
effectiveness and talent
management to navigate the
dynamic landscape successfully.
By leveraging the expertise of
HRM, organizations can
optimize their board's
effectiveness, attract top talent,
and foster a high-performance
culture. The role of HRM in
aligning board effectiveness and
talent management with
organizational strategy is critical
in driving sustainable growth and
ensuring success in the Bola
Ahmed Tinubu era and beyond.
In the ever-evolving business
landscape, effective governance
is crucial for organizational
success. Strengthening board
composition and implementing
robust succession planning
strategies are vital components
of effective governance. HRM's
involvement in conducting
assessments, identifying areas
for improvement, and grooming
future leaders is instrumental in
achieving these objectives. By
ensuring the right composition
of the board and facilitating
smooth leadership transitions,
organizations can drive long-
term success and adapt to the
challenges of the future.
Enhancing board performance
evaluation is crucial for driving
effective governance in today's
complex business landscape.
HRM plays a pivotal role in
designing and implementing
objective evaluation processes,
supporting continuous
development, and improving
overall board performance. By
leveraging HRM's expertise in
performance management,
organizations can foster a
culture of continuous
improvement, strengthen board
effectiveness, and ensure
sustainable success.
References
Charan, R. (2016). The High-Impact
Board: What Nonprofit Boards Can Do
to Raise More Money and Impact More
Lives. Wiley.
Kim, W. C., & Mauborgne, R. (2005).
Blue Ocean Strategy: How to Create
Uncontested Market Space and Make the
Competition Irrelevant. Harvard Business
School Press.
McKinsey & Company. (2018).
Delivering through diversity. Retrieved
from
https://www.mckinsey.com/business-
functions/organization/our-
insights/delivering-through-diversity
Reh, J. (2021). Understanding
Succession Planning. The Balance Small
Business. Retrieved from
https://www.thebalancesmb.com/unders
tanding-succession-planning-1919272
Tricker, B. (2015). Corporate
Governance: Principles, Policies, and
Practices. Oxford University Press.
 Ways a Company Director Can Become an Effective Leader in a
IO Disruptive Economy.
Ways a Company Director can Become an Effective
Leader in a Disruptive Economy.
-Orienru Igho Otejiri MIoD
Igho Orienru MIoD
CEO
ROHI Consulting
Tel:08029767226
igho.lirs@gmail.com
INTRODUCTION
The world of business is
continuously evolving, and
the most successful
companies are those that
can adapt to disruptive
economic environments.
The global economy is
experiencing unprecedented
disruption due to
technological
advancements, global
competition, and changing
customer preferences.
These factors have createda
challenging environment for
businesses, and company
directors must adopt
40 www.iodnigeria.org
effective leadership strategies
to navigate this disruption
successfully.
In this article, we will explore
what it means to be an
effective leader in a disruptive
economy, defining key terms
and outlining strategies that
company directors can employ
to drive success.
KEY TERMS
EFFECTIVE LEADER:
An effective leader is someone who
can inspire and motivate their team
to achieve shared goals, even in
challenging situations. While guiding
their organizations through
challenging times, effective leaders
also inspire their employees to reach
their full potential. They are
visionaries who can see the bigger
picture, understand market trends,
and anticipate change. They are
knowledgeable, confident, possess
strong communication skills, and
can articulate their vision clearly to
their teams, building a culture of
collaboration, creativity, and
innovation.

Furthermore, effective leaders
are able to create a sense of
purpose and direction for their
organizations, aligning their
team's objectives with the
organization's strategic goals.
Effective leaders lead by
example, and they possess a
strong work ethic, a commitment
to their team, and a willingness
to learn and adapt to change.
DISRUPTIVE
ECONOMY:
Disruptive economy refers to a
business environment
characterized by significant and
rapid changes, driven by
technological innovation,
globalization, and shifting
customer choices. Disruption can
lead to the creation of new
markets, products, and services,
but it can also cause significant
upheaval for existing businesses.
Disruptive economies offer
opportunities for innovation and
growth, but they also present
significant challenges for
companies that are not prepared.
In a disruptive economy,
companies must be agile and
adaptable to survive. Companies
that fail to keep up with the
changing landscape risk
becoming obsolete. The
companies that succeed in a
disruptive economy are those
that can adapt quickly to change,
stay ahead of the competition,
and meet the evolving needs of
their customers.
Now that we have defined the
Ways a Company Director Can Become an Effective Leader in a
key terms, let us explore the
strategies that company directors
can employ to become effective
leaders in a disruptive economy.
1. Embrace Disruption: One
of the most important things
a company director can do
to be an effective leader in a
disruptive economy is to
embrace disruption. This
means recognizing that
change is inevitable and that
the company must be
prepared to adapt quickly.
Leaders who embrace
disruption are more likely to
see opportunities where
others see threats. They
encourage their team to be
innovative and creative, and
they are willing to take
calculated risks to stay ahead
of the competition.
2. Develop a Clear Vision: In
a disruptive economy, it is
essential to have a clear
vision of where the company
is headed. This means
understanding the market,
the competition, and the
company's strengths and
weaknesses. A clear vision
allows the leader to
communicate effectively with
their team, and it provides
direction and focus. A
company director who has a
clear vision can inspire their
team, gain their trust and
confidence.
3. Build a Strong Team:
Effective leaders understand
that they cannot achieve
success alone. They build a
Disruptive Economy. IO
strong team of talented
individuals who share the
company's vision and
values. In a disruptive
economy, a strong team is
critical. The leader must
ensure that each team
member has the necessary
skills and knowledge to
contribute to the
company's success,
because 'none of us is as
smart as all of us'. A strong
team is more resilient and
adaptable, and it is better
equipped to face
challenges and seize
opportunities.
4. Be Agile: In a disruptive
economy, agility is
essential. Companies must
be able to pivot quickly to
respond to changes in the
market. Effective leaders
are agile and adaptable.
They are willing to change
course when necessary,
and they encourage their
team to do the same.
Leaders who are agile can
spot opportunities quickly
and act on them before
their competitors.
5. Communicate Effectively:
Effective communication is
critical in a disruptive
economy. Leaders must be
able to communicate their
vision, strategy, and goals
clearly and persuasively.
They must also be able to
listen to feedback from
their team and adjust their
approach accordingly.
Effective communication
builds trust and confidence,
www.iodnigeria.org 41
 Ways a Company Director Can Become an Effective Leader in a
IO Disruptive Economy.
and it creates a sense of
unity and purpose within the
team.
6. Emphasize Innovation: In a
disruptive economy,
innovation is essential.
Companies must be willing
to experiment and take risks
to stay ahead of the
competition. Effective
leaders emphasize
innovation and encourage
their team to be creative and
think outside the box. They
reward risk-taking and
celebrate successes, no
matter how small. Leaders
who prioritize innovation
create a culture of
continuous and never-ending
improvement, which is
essential in a disruptive
economy. Also, effective
leaders invest in research and
development, create
opportunities for learning
and growth, and incentivize
employees to share their
ideas and contribute to the
organization's success.
7. Embrace change: Effective
leaders in a disruptive
economy embrace change as
an opportunity rather than a
threat. They are willing to
take calculated risks, invest in
new technologies and
innovations, and challenge
the status quo. They
understand that change is
inevitable, and by embracing
it, they can drive growth and
success for their
organizations.
8. Invest in technology:
42 www.iodnigeria.org
Technology is a significant
driver of disruption in today's
economy. Effective leaders
invest in the latest
technologies, such as
artificial intelligence,
machine learning, and
automation, to streamline
their operations and improve
productivity. They also
recognize the importance of
cybersecurity, data analytics,
and cloud computing,
leveraging these tools to gain
a competitive advantage.
9. Build strong relationships:
Effective leaders in a
disruptive economy prioritize
building strong relationships
with their customers,
employees, and
stakeholders. They
understand the importance
of listening to their
customers' needs, providing
personalized experiences,
and delivering exceptional
customer service. They also
foster a collaborative and
inclusive workplace, where
employees feel valued and
engaged, and are
encouraged to share their
ideas and perspectives.
10. Be adaptable: In a
disruptive economy,
change is constant, and
effective leaders must be
adaptable to thrive. They
are flexible and open-
minded, willing to adjust
their strategies when
necessary, and learn from
their failures. They also
anticipate change and have
contingency plans in place,
allowing them to respond
quickly and effectively to
unforeseen circumstances.
CONCLUSION
In conclusion, effective
leadership is essential to
navigating the disruptive
economy. Company directors
who can embrace
disruption/change, foster a
culture of innovation, invest in
technology, build strong
relationships, and remain
adaptable will be the ones who
can succeed in this rapidly
evolving business environment.
By following these strategies,
directors can guide their
organizations through the
challenges of disruption, drive
growth and success for
themselves and their
organizations.
 “The Future of Stakeholder Capitalism: Embracing Technology
IO and Connectivity for Stakeholder Engagement”

“e Future of Stakeholder Capitalism:

Embracing Technology and Connectivity for
Stakeholder Engagement"
-Mrs. Celine Okoroma-Vincent FIMC, ACIS, CMS

Executive Summary

This piece explores the evolving landscape of

corporate governance and the growing
recognition of the importance of stakeholder
engagement. It discusses the role of
technology in facilitating stakeholder
engagement for boards and corporations. It
discusses the potential of digital platforms,
social media, and data analytics in enhancing
communication, transparency, and
collaboration with stakeholders in an
increasingly interconnected world.

Introduction

Corporate gover nance has long been

associated with maximizing shareholder value.
Celine is a Lawyer, Corporate However, the traditional shareholder-centric
Governance, and Compliance approach is under going a significant
transformation. In recent years, there has been
Professional. She is a Certified a growing recognition of the importance of
Management Consultant and a stakeholder engagement in the decision-
making processes of corporations. This shift
Fellow of the Institute of marks a turning point in the corporate
Management Consulting-Nigeria landscape, emphasizing a more inclusive
model that considers the interests of all
stakeholders, including employees, customers,
communities, and the environment.

For much of modern history, the primary goal

44 www.iodnigeria.org

of corporations has been to
maximize shareholder value.
This approach places an
emphasis on short-term profits
and returns to shareholders,
often at the expense of other
stakeholders. The primary
responsibility of corporate
boards and executives was to
serve the interests of
shareholders, leaving other
stakeholders with limited
influence on decision-making
processes. This approach was
driven by the belief that
shareholder value maximization
would lead to overall economic
growth and prosperity.
In the fast-paced and
interconnected world of modern
business, stakeholder
engagement has evolved from a
mere formality to a strategic
imperative. Gone are the days
“The Future of Stakeholder Capitalism: Embracing Technology
and Connectivity for Stakeholder Engagement”
when corporations could
operate in isolation; now,
businesses must actively engage
with their stakeholders to build
trust, ensure transparency, and
foster collaboration.
No longer confined to
shareholders alone,
corporations are recognizing the
significance of actively engaging
with customers, employees,
communities, investors, and the
environment.
The Emergence of
Stakeholder Capitalism
In recent years, there has been a
growing realization that
corporations have broader
responsibilities beyond just
financial returns to shareholders.
The concept of "stakeholder
capitalism" has gained traction,
IO
emphasizing the idea that
companies should create value
for all stakeholders, including
employees, customers,
suppliers, local communities,
and the environment.
This shift has been driven by
various factors:
Changing Business
Landscape: Globalization,
technological advancements,
and interconnected markets
have made businesses more
complex and interdependent.
Corporations now operate in
an environment where the
interests of various
stakeholders are closely
intertwined and should be
prioritized.
Increasing Public
Awareness: Societal
expectations and demands
have evolved, with stakeholders
www.iodnigeria.org 45
 “The Future of Stakeholder Capitalism: Embracing Technology
IO and Connectivity for Stakeholder Engagement”
placing more emphasis on
ethical business practices,
environmental responsibility,
and social impact. Customers,
employees, investors, and
communities are increasingly
vocal about corporate behavior
and demand greater
accountability.
Environmental, Social, and
Governance (ESG) Factors:
Investors and asset managers
are increasingly considering
ESG factors when making
investment decisions. They
recognize that sustainable and
responsible business practices
can lead to better financial
performance over the long
term.
Legal and Regulatory
Developments: Some
jurisdictions have introduced or
proposed legislation requiring
corporations to consider the
interests of all stakeholders. This
includes requirements to report
46 www.iodnigeria.org
on environmental impact, social
initiatives, and board diversity.
TECHNOLOGY
AS THE
TRANSFORMATION
CATALYST
The catalyst for this
transformation lies in
technology, which has
unleashed a new era of
stakeholder communication,
transparency, and
collaboration. From digital
platforms and social media to
data analytics and virtual
collaboration, technology is
reshaping the way boards and
corporations interact with their
stakeholders, driving us towards
a future where engagement is
smarter, more inclusive, and
more impactful than ever
before.
Digital Platforms: Creating
an Ecosystem of
Engagement
In the not-so-distant past,
stakeholders seeking
information about a
corporation would have to
navigate labyrinthine websites
or wade through lengthy
r e p o r t s . To d a y , d i g i t a l
platforms have revolutionized
accessibility, centralizing
critical infor mation, and
creating ecosystems of
engagement. Whether
through sleek online portals,
user-friendly apps, or dynamic
websites, corporations are
empowering stakeholders with
a one-stop-shop for real-time
data, updates, and feedback
mechanisms.
These digital platforms are
more than just repositories of
information. They serve as
bridges of connectivity,
enabling stakeholders to
engage in meaningful
dialogues with corporations.
Customers can voice their
opinions, employees can
contribute ideas, investors can
track performance, and
communities can hold
corporations accountable for
their social and environmental
commitments. The result is a
dynamic exchange of ideas
that fosters mutual
understanding and builds trust
between stakeholders and
corporations.
Social Media: Empowering
Stakeholder Voices
The rise of social media has

turned stakeholders into active
participants in corporate
narratives. By leveraging social
media effectively, businesses can
directly engage with their
stakeholders on a personal level.
This level of interaction
enhances brand promotion,
customer support, and crisis
management efforts.
Through social media,
corporations can showcase their
commitment to social and
environmental responsibilities,
championing transparency and
ethical practices. Additionally,
social media listening and
sentiment analysis tools enable
corporations to track
conversations and identify
emerging trends. This proactive
approach allows businesses to
engage with stakeholders in a
timely manner, building trust and
loyalty.
Data Analytics: Unleashing
the Power of Insights
The volume of data generated
daily is staggering, but
harnessing this data through
advanced analytics provides
invaluable insights for
corporations seeking to enhance
stakeholder engagement. By
mining and analyzing data from
various sources, corporations
can uncover patterns,
preferences, and pain points that
guide personalized engagement
efforts.
For example, data analytics can
help e-commerce companies
identify customer behavior
“The Future of Stakeholder Capitalism: Embracing Technology
and Connectivity for Stakeholder Engagement”
patterns, leading to tailored
marketing campaigns and
enhanced customer
experiences. In the realm of
employee engagement, data
analytics can detect signs of
disengagement, enabling
corporations to take targeted
actions to improve workplace
satisfaction and productivity.
Virtual Collaboration:
Bridging Boundaries for
Meaningful Engagement
As globalization blurs
geographical borders, virtual
collaboration tools have
emerged as essential enablers for
inclusive stakeholder
engagement. Video
conferencing, online webinars,
and virtual events break down
physical barriers, allowing
corporations to engage with
stakeholders across continents in
real-time.
Virtual collaboration fosters
regular interactions, facilitating
stronger relationships with
international partners,
customers, and investors.
IO
M o r e o v e r, i t p r o m o t e s
inclusivity by accommodating
stakeholders who might face
geographical constraints or
time differences. For instance,
virtual collaboration empowers
remote employees to actively
participate in meetings and
decision-making processes,
creating a more diverse and
engaged workforce.
The Benefits of Stakeholder
Engagement in Corporate
Governance
Shifting from a shareholder-
centric model to a stakeholder-
inclusive approach offers
several benefits for
corporations and society:
Long-Term Sustainability:
Engaging with stakeholders
enables corporations to identify
and address potential risks and
opportunities, leading to more
sustainable business practices.
Enhanced Reputation and
Brand Value: Positive
engagement with stakeholders
can boost a company's
www.iodnigeria.org 47
 “The Future of Stakeholder Capitalism: Embracing Technology
IO and Connectivity for Stakeholder Engagement”
reputation and brand, attracting
customers and talented
employees who align with the
organization's values.
Improved Decision-Making:
Stakeholder engagement
provides valuable insights from
diverse perspectives, leading to
better-informed and more well-
rounded decisions.
Greater Innovation and
Adaptability: Engaging with
customers, employees, and
communities fosters innovation
and the ability to adapt to
changing market dynamics.
Social and Environmental
Impact: Corporations that
consider the interests of all
stakeholders can play a
significant role in addressing
social and environmental
challenges, contributing to a
more sustainable and equitable
society.
Enhanced Long-Term Value:
By considering the interests of all
stakeholders, companies can
create sustainable business
strategies that generate long-
term value and stability.
Risk Mitigation: Identifying and
addressing stakeholder concerns
proactively can help companies
avoid potential Reputational and
legal risks.
Talent Attraction and
Retention: Companies that
prioritize stakeholder welfare are
more attractive to top talent,
48 www.iodnigeria.org
leading to increased employee thrive by putting their
satisfaction and retention. stakeholders at the heart of
their operations and making a
Innovation and Adaptability: positive difference in the lives of
Involving a diverse set of the people they serve.
stakeholders fosters innovative
ideas and adaptability to The future of stakeholder
changing market conditions. engagement lies at the
intersection of technology and
Conclusion connectivity. Embracing digital
platforms, social media, data
analytics, and virtual
The shift from a shareholder-
collaboration opens up new
centric model to a stakeholder-
vistas of communication and
inclusive approach marks a
understanding for corporations
fundamental change in
and their stakeholders. As
corporate governance
technology advances, so too
paradigms. Emphasizing the
will the potential for fostering
importance of stakeholder
sustainable, transparent, and
engagement recognizes that
collaborative relationships.
corporations are part of a larger
ecosystem and have
responsibilities beyond
shareholder returns. Businesses
that proactively engage with
stakeholders are likely to thrive in
an evolving business landscape,
fostering long-term
sustainability, innovation, and
social impact. As this paradigm
shift gains momentum, the
future of corporate governance
promises to be more inclusive,
responsible, and beneficial for
both businesses and society at
large.
By embracing the transformative
power of technology, boards and
corporations can chart a course
towards a future where
stakeholder engagement is not
just a necessity but a powerful
tool for innovation, growth, and
meaningful impact in the world.
It is a future where corporations
49
IO Gender Stereotyping and Its Impact on Corporate
Governance: A Call for Equal Opportunities

Gender Stereotyping and Its Impact on Corporate

Governance: A Call for Equal Opportunities
-Mudiaga Aluya

Introduction recommendations to close the gap and the need for equal
opportunities in leadership positions across our public and
private sectors.
Gender stereotypes perpetuate biases
that hinder the progress of women in a
corporate environment; resulting in a Forms of Stereotyping
lack of diverse perspectives and
diminished organisational performance.
The culturally parochial nature of
Nigerians encourages this type of
unethical attribute. As Nigeria transitions
into administration, we must examine
the role it has played in inhibiting
corporate governance. By identifying
the key challenges associated with
gender stereotyping in corporate
governance, this paper aims to propose
actionable solutions for promoting
inclusivity and fostering gender equality.
It also examines the detrimental effects
of gender stereotyping on corporate
gover nance and highlights some

50 www.iodnigeria.org
Gender stereotyping is an act of
preconceiving, usually
generalized views about how
members of a certain gender do
or should behave, or which
characteristics they do or should
have. They are meant to
reinforce age-long gender
norms, typically in a binary way;
that is feminine or masculine. It
has been an issue in the
foreburner since time
immemorial. It can be descriptive
or prescriptive.
Descriptive is the belief of what a
gender is like. Prescriptive belief
is about how people of a specific
gender should act and the
attributes they should have.
Gender stereotyping cuts across
age, race, ethnicity, and
vocation. It is saddened that the
corporate world which is a
civilized environment is not left
out of this social-cultural
misinterpreting/misrepresentati
on of gender and their
capabilities. The impact on
corporate governance, board
room decisions, organisation
per for mance, stakeholders'
confidence in leadership, and the
long-term success of an
Source: https://moneyzine.com/careers-resources/female-ceo-statistics/
organisation is x-rayed below. administration.
Nigeria's Fair Share of Postcolonial, Nigerian women
have continued to struggle for
Stereotyping
their rights and empowerment
in various spheres of life. They
Women have played various
have participated in politics,
roles in the social, economic, and
education, health, agriculture,
political development of the
entrepreneurship, and civil
nation, from precolonial times to
society. Some notable women
the present day. Women in pre-
leaders include Funmilayo
colonial Nigeria were involved in
Ransome-Kuti, Margaret Ekpo,
occup a tions such a s food
Gambo Sawaba, Ngozi
processing, mat weaving,
Okonjo-Iweala, Chimamanda
pottery making, and cooking.
Ngozi Adichie, Amina
They also had access to land
Mohammed, and many others.
through their husbands or
Recording many successes.
parents and controlled the labour
of younger family members.
Women in contemporary
Some women were also
Nigeria face many challenges,
prominent in long-distance trade
such as poverty, illiteracy,
and acquired titles and wealth.
violence, discrimination,
corruption, and insecurity.
However, in colonial Nigeria,
They also have to balance their
women's status and autonomy
multiple roles as mothers,
were undermined by the
wives, workers, and citizens.
introduction of cash crops,
The worst form of
taxation, wage labour, and
discrimination against women
Christian missions. They resisted
is shielding them from the
colonial policies through
corridor of power.
protests, boycotts, and strikes.
The most famous example was
Stereotypes in the
the Aba Women's Riot of 1929
when thousands of women rose Corporate World
up against the British colonial
www.iodnigeria.org 51
Gender stereotypes contribute to
the underrepresentation of
women in leadership roles within
corporate firmament.
Traditional gender roles often
associate leadership qualities
with assertiveness, confidence,
and decisiveness, which are
typically attributed to men. This
bias creates a significant barrier
for qualified women to access
executive positions, limiting the
diversity of perspectives and
impeding effective decision-
making. This perception further
emboldens those who are of the
view that a certain gender does a
rigorous board room discussion
and decision at the detriment of
broader, diversified, and robust
discussion occasioned by
eminently qualified individuals
regardless of their gender.
Gender stereotyping encourages
a lack of heterogeneity in
composition and breeds "group
thinking". Homogenous boards
limit the range of viewpoints,
leading to a narrow focus and
diminished innovation. Gender-
diverse boards have been proven
to enhance financial
performance and corporate
governance outcomes. Research
conducted in Canada shows that
gender diversity in boardrooms
can improve organisational
performance. The research
espoused the saying in the 1785
William Cowper's poem The
Task: “Variety is the very spice of
life, that gives it all its flavour.” In
this case, the boardroom.
Gender stereotypes perpetuate
52 www.iodnigeria.org
the gender pay gap, affecting
women's advancement in
corporate governance. Biases
that undervalue women's skills
and contributions often result in
unequal compensation,
hindering women's career
progression. This gap not only
undermines gender equality but
also compromises the overall
performance and success of
organizations. Proponents of
gender pay parity have grown in
recent years advocating the need
for equity and not necessarily
equality.
Gender stereotypes often restrict
women's access to professional
networks and mentoring
opportunities. Male-dominated
networks; “boy's club”, may
perpetuate the notion that
women are less capable or lack
the necessary connections for
career advancement. This
exclusion from key networks
and mentorship programs can
impede women's professional
growth and limit their visibility
within organizations.
Gender stereotyping can lead
to implicit bias in decision-
making processes, influencing
recruitment, promotion, and
performance evaluation.
Biased judgments can result in
missed opportunities to
harness the talents and
capabilities of women, leading
to a less diverse and dynamic
corporate governance
landscape. Recruiting the best
talent for any role is becoming
more herculean. Gender
stereotyping will only lead to a
loss of both manpower hours
and resources which in terms
drain the scarce funding
available for recruitment.
Lack of representation in key
committees is another
consequence of gender
stereotyping. This can lead to a
lack of representation of
women in key committees,
such as audit or compensation
committees, which are crucial
for effective corporate
governance. This exclusion
limits diverse perspectives in
critical decision-making
processes. Women are known
to be more sensitive, critical of
issues, and better prepared for
boardroom meetings as opined
by the research earlier
mentioned. Giving more
opportunities will engender
holistic and sound deliberations
in the boardroom.
Stereotypical perceptions of
leadership style pose a threat to
corporate governance. Gender
stereotypes often associate
assertiveness and dominance
with effective leadership,
favouring traditionally
masculine traits. While issues of
customer care, compensation,
employee concerns, and users
of services are feminine traits.
These perceptions hamper the
recognition and acceptance of
diverse leadership styles, such as
collaborative and inclusive
approaches. Each trait shouldn't
be a standalone. Blending both
traits is a recipe for high
organisational performance and
the company's board success.
Lastly, gender stereotypes can
influence performance
evaluation processes, leading to
biased assessments that
undervalue women's
contributions and skills.
Performance evaluations form
the basis for advancement in
many public and private
organisations; predisposing
those with wrong evaluations
not rise in the corporate ladder
as and when due. This can have
a long-term impact on career
progression and opportunities
within corporate governance.
Recommendations
Gender stereotypes can have a
significant impact on corporate
governance, leading to
underrepresentation of women
in leadership positions, a lack of
gender diversity in boardrooms,
perpetuation of the gender pay
gap, limited access to networks
and mentoring, implicit bias in
decision-making processes, and
other challenges. In addressing
this issue, several solutions
should be implemented.
Organisations should adopt
gender-neutral selection
processes, diversity targets, and
transparent nomination
procedures to ensure a balanced
representation of women in
leadership roles and on
corporate boards. Conducting
gender pay audits, establishing
transparent pay scales, and
promoting salary transparency
is crucial to bridging the gender
pay gap.
Additionally, organisations
should actively promote
inclusive networking events,
mentorship programs, and
training on unconscious bias to
provide equal access to
networks and support career
growth for women.
Implementing unconscious bias
training for decision-makers,
creating diverse committees,
and fostering an inclusive
organisational culture are vital
for mitigating biases and
promoting equal opportunities
in corporate gover nance.
Organisations should also offer
flexible work arrangements and
engage male allies and
champions to challenge gender
stereotypes, promote diversity,
and drive meaningful change
within the organisation.
Conclusion
Although there has been a
significant increase in women's
participation in senior
management over the decade
according to the Grant
Thornton Report on Women
in Business, 2020, there is still
more to be done to close the
gap in boardroom
representation and
participation. Gender
stereotyping poses significant
challenges to achieving gender
equality in corporate
governance. By implementing
the solutions and
recommendations highlighted
above, organisations can
create equal opportunities,
challenge gender stereotypes,
and unlock the full potential of
diverse perspectives.
Promoting gender equality in
corporate governance is not
only a matter of social justice
but also a strategic imperative
for improved organisational
performance, long-term
success, and stakeholder
confidence in the leadership of
the organisation. In the words
of Jack Ma, “In the future
world, we will have a lot of
women leaders. Because in the
future, people will not only
focus on muscle and power,
but they will focus on caring
and responsibility”. The seed
for this foreseeable future is
better sow.
www.iodnigeria.org 53
IO Social Capital In Organisations & Society

Social Capital in Organisations & Society

-DR. NELSON M. ANUMAKA
B.Sc. MBA, DBA (Swiss), ACIS, FCIB, FCA, CPFA (London), M.IoD.
Managing Consultant, NMA Consulting

Introduction

The OECD defines Social
Capital as “networks together
with shared norms, values and
understandings that facilitate
cooperation within or among
groups”.
Wikipedia defined Social
capital as "the networks of
relationships among people
who live and work in a
particular society, enabling
that society to function
effectively".
Social capital can be defined as
the resources we gain from
existing and within a social
network.
Social capital therefore refers to
the institutions, relationships,
and norms that shape the quality
and quantity of a society's social
interactions. There are
evidences that togetherness is
crucial for societies to succeed
economically and for
development to be continuous.
Social capital is the glue that
holds the society.
Social capital is a set of shared
values or resources that allows
individuals to work together in a
group to effectively achieve a
common purpose. It can also
be thought of as the potential
ability to obtain resources,
favours or information from
one's personal connections.
Social Capital talks about the
people you know; the people
who know you and how they
know you. Quite unfortunately,
people think or behave like
social capital is only needed on

54 www.iodnigeria.org

weddings and burials. That is
why you see someone will not
have contacted you in ten years
but out of the blue sends you a
message: "Hello so and so,
long time, next Sunday is my
son's pre-wedding. I need
your support“. It is a concept
from social science that is
centered on our ability to
leverage social connections in
order to solve problems,
improve well-being, pursue
shared objectives, and take
collective action. It is reciprocal
and does not need money
(especially in this virtually
connected world) to build. It just
needs being sensitive that
people have emotions and that
you cannot sneak into their lives
only when you need help.
H o w e v e r, i t i s n o t b u i l t
overnight.
Social Capital In Organisations & Society
Measuring Social
Capital
Measuring social capital may be
difficult, but it is not impossible.
Social capital has been
measured in a number of
innovative ways but a single
"true" measure is probably not
possible or perhaps even
desirable. Several studies have
identified useful proxies for
social capital, using different
types and combinations of
qualitative, comparative and
quantitative research
methodologies.
These include quantitative
methods in formal research
designs with use of control
groups, econometric analyses
calling on instrumental variables
and principal component
IO
approaches, as well as case
studies. Qualitative and
inductive methods include
trust, civic engagement, and
community involvement.
Measures of trust in
government, voting trends,
memberships in civic
organisations, hours spent
volunteering, tracing the
history of state-society
relations and the pressures that
strong community ties can
place on members. For
example, "Old heads" who
provide wisdom and guidance
to the young ones, using
survey and interview data,
newspaper readership,
membership in choral
societies, and football clubs
and confidence in public
institutions.
www.iodnigeria.org 55
IO Social Capital In Organisations & Society
Types of Social Capital
Linking social capital refers to
relationships between people at
different hierarchical levels.
Linking social capital develops
horizontally between different
socioeconomic groups.
l Linking creates ties
across groups, but those
that span different
socioeconomic groups.
l Linking has been
associated with
increasing one's
chances of upward
social mobility.
l Those who are in similar
socioeconomic groups
are often referred to as
a 'Community'.
l It is outside of those
communities that linking
56 www.iodnigeria.org
takes place. l Middle-level managers
can have strong
l For instance, a connections with top-
footballer may be level managers.
introduced to an
underprivileged boy. l Everyone is treated
The two may develop a equally and fairly.
relationship and hence
be able to leverage a far l Authority levels do not
larger level of resources get in the way of
than previously possible. friendship.
l People can be friends l Employees from a
with anyone at an variety of levels can
organisation. learn things from each
other.
l It does not matter what
position or level of l Employees can witness
authority they have. a variety of work styles.
l MDs/CEOs can have l Employees must have
strong connections with shared interests and
frontline employees. goals.
 Social Capital In Organisations & Society IO

l Bridging social capital happens when

is when two teams employees from two l This might come from
across groups create groups achieve goals closely working with a
social capital. When together. colleague for years and
bridging is successful, developing a close
individuals in the two l For instance, a loan personal relationship
groups discover shared officer and an with them.
interests and goals and underwriter work l Alternatively, it might
work together to together to process come through sitting
achieve them. Bridging home loans. They work next to the same
is when two teams in two different person at each football
create social capital. A departments. One is in match, thereby
neighborhood retail, and one is in the developing a close
association that links up back office. But relationship.
with a Divisional Police together, as a social
Station is an example unit, they take care of l Typically, these bonds
of how bridging works. their customers. form through the
development of social
l The connection is l Since employees share ties.
'bridged' in the fact that interests and goals, it is
one person is easier for them to l Bonding is when a
introduced to another nurture relationships. team creates social
through an capital within the
intermediary. That l When two departments team, between its
intermediary is effective come together, they members.
'the bridge' that brings have the power to
the two parties achieve more goals as a l For instance, a graphic
together. group. design team might
work on a client print
l In this form of social Bonding social capital campaign together. Or
capital, there is greater describes the connections frontline retail
diversity. between similar groups of employees work
people that share the same together to take care
l Bridging brings two or characteristics, interests and of walk-in customers.
more people together goals. Bonding is the strongest
who would otherwise type of social capital as a close l Everyone on the team
not connect. relationship between two is working toward a
people is formed. common, clear goal.
l One of the important
aspects of bridging is l This might be age, l Employees have
that it is horizontal and hobbies, relationships, strong relationships
it develops between sports teams, or with their teammates.
people from the same another variable that
socioeconomic group. helps to create a bond l Working together in
between two people or the same department
l Successful bridging a group of people. makes teams more

www.iodnigeria.org 57
IO Social Capital In Organisations & Society
efficient.
l Employees bond over
shared experiences and
common goals.
l Teams become
specialists in their work.
l Employees do not
nurture relationships
with employees from
other departments.
l If employee personalities
do not mesh well, it
negatively affects team
morale.
Which type of social
capital should an
organisation have?
l Every organisation has its
own culture and
o b j e c t i v e s .
l The type of social capital
you create will depend on
your Company's unique
n e e d s .
l For instance, if you run a
small roofing business,
you would benefit most
from bonding social
capital. Since your team
works closely together,
they will learn to be more
e f f i c i e n t .
l Your team may even
thrive from a combination
o f t y p e s .
l For instance, if you run a
58 www.iodnigeria.org
nonprofit organisation,
you would benefit from all
social capital types.
Bonding can help your
individual teams run like a
well-oiled machine.
Bridging can help you
create partnerships with
potential donors. And
linking can help you
leverage strengths from
several departments.
Social Media and Online
Social Networks through
internet has revolutionized social
capital, effectively by creating a
seemingly infinite number of
social connections. For example:
l Bolt, Uber and eBay
users are able to use
social capital to make a
selection based on the
reviews of past users.
The same people
contribute to social
capital by leaving their
own reviews later.
l Social networking sites
such as Facebook
strengthen bonds based
on personal interests,
such as hobbies, past
experiences, a shared
hometown, or a previous
employer.
l Social media is also a
primary source of social
capital for small business
owners who can
showcase their products
and services online as
effectively, if more
cheaply, than larger
Companies.
l Zoom has allowed
people from across
socioeconomic groups
and demographics to
convene and
collaborate in virtual
online world of
meetings, workshops,
seminars, Church
service and E-learning.
l Often, these individuals
will develop friendships
and relationships that
extend beyond the
bounds of meetings.
Developing Social
Capital
Social capital is a by-product
of one's social networks and
interpersonal relationships.
Growing and strengthening
these bonds among families,
friends, and colleagues will
help build your access to social
capital. This can be achieved
through:
l Socializing.
l Keeping in touch with
friends and family.
l Attending networking
events.
l Reaching out to old
acquaintances.
l Forming social networks
 Social Capital In Organisations & Society IO

that are diverse can also opposed to more formal

help you reach new and avenues. l It helps organisations
different types of people run smoothly.
who may have new and l Individuals with access
different types of to higher levels of social l It helps Companies
information. capital also report being improve employee
happier, in better health, retention.

Importance of Social and have increased

Capital levels of trust in a l The norms of
community as a result of reciprocity (I give, you
their positive give).
l Leveraging social capital
relationships.
increases the flow of
l Interpersonal
information across
l Within organisations, relationships.
social connections.
such as businesses, high
social capital also fosters l A shared
l Opening doors and
trust, mutual respect, understanding.
spreading ideas.
and collaboration -
which, in turn, can lead l Cooperation and
l The well-known saying,
to increased productivity collaboration.
"it is not what you
and profitability.
know, it is who you
l A shared sense of
know," is a paradigmatic
l In the business world, identity.
expression of social
firms with a high degree
capital.
of social capital enjoy l A sense of belonging.
happier and more
l It has been found that
productive employees. l Strong social support.
many people have
found their jobs through
l It fosters trust between l Building social capital
word of mouth as
colleagues.

www.iodnigeria.org 59
IO Social Capital In Organisations & Society
helps businesses
achieve ambitious
goals.
l Saves time by getting
more projects done in a
shorter amount of time.
l Prevents information
silos by sharing
information and
knowledge with other
employees.
l Helps reduce workplace
conflict.
l Makes employees feel
more supported.
l Can help prevent
burnout.
l Allows for greater
collaboration and
teamwork.
l Helps employees
manage work stress.
l Increases employee
engagement.
l Promotes a greater
sense of well-being.
l Creates a more
inclusive workplace.
l Team members support
each other by sharing
workloads and giving
advice.
l Employees are more
likely to stay with a
Company through a
60 www.iodnigeria.org
tough time if they have
friends at work. l Do they collaborate?
l Teams are more likely l Do they spend time
to collaborate and together outside of the
remain creative if they office?
have social connections
with each other, even l Do they complain about
when times are hard. colleagues?
l Employees can simply l Are office politics
help each other laugh, rampant?
remain positive, enjoy
and work more hours l Is there teamwork?
when they have some
form of social l Is there mutual respect?
relationship.
l Do you retain employees
l Overall, employees who or are they always
feel socially connected quitting?
at work will have higher
levels of job satisfaction l If you see no desire for
and engagement. communication or social
interaction outside of
Social Capital and work, you may notice
C o m p a n i e s poor cooperation at
work.
How do you know if your l If you hear them
Company has high social complaining about
capital? colleagues, you may
notice there is a lack of
Taking a look at your mutual respect.
employees' behaviour will
help you see if your business l Overall, this contributes
has low or high social capital. to a negative employee
Take for example: experience, which is bad
for productivity,
l Examine the level of engagement, and
trust and reciprocity retention.
between your
employees.
l Do they eat together?
l Do they cooperate?

How to Invest in Social
Capital
Team building is one of the
main pillars of social capital. It
helps employees get to know
each other in a low-pressure
environment. Here are a few
ways to invest in team building
exercises:
l Organising frequent
meetings between teams
can help with this.
l Organise quarterly
workshops for the team
to meet in person where
you strategize together
and play team building
games.
l Host weekly video
meetings
between different
departments.
l Host monthly breakfast
meetings with all team
Social Capital In Organisations & Society
members.
l Encourage employees to
have interpersonal
relationships with their
colleagues.
l Start meetings with a
light personal question
for each of your co-
workers, like “what did
you do this weekend?”
l Host or ask someone on
the team to plan an
optional after-work
happy hour.
Assign responsibilities
that boost collaboration
Increasing collaboration between
team members is essential to
building social capital.
Collaboration helps teams get
IO
more work done in a shorter
period of time and fosters
innovation and creativity in a
group setting. One way to do
this is to give each team
member different
responsibilities. This way,
they'll have to work together to
complete a project. Here are
some tips to help you with this:
l Set aside a few
dedicated brainstorming
hours each week so
employees can come
up with new ideas
together.
l Assign co-owners to
projects, so that people
from different teams
can experience leading
an initiative together.
l Encourage a culture of
feedback.
www.iodnigeria.org 61
IO Social Capital In Organisations & Society

that shared values can create the group and to recruit

l Bring in unique more social capital for
perspectives from other everyone.
departments.
Challenges of Social
Align individual, team, Capital
and Company values
Social capital is comprised of
Social capital is built on shared concepts such as "Trust",
values. If team members do not "Community" and "Networks"
align with Company values, which are difficult to quantify.
they will struggle to nurture The challenge is increased
work relationships and would when one considers that the
be on the lookout for another quest is to measure not just the
Company they will align with. quantity but also the quality of
One way to ensure your social capital on a variety of
employees align with your scales.
Company is to ask them in a
formal meeting or a survey l Social capital researchers
what their values are. Here are aim to identify methods
some questions you could use: and tools which can
quantify and qualify social
l What do you think of capital to inform
our existing Company policymakers and
values? stakeholders to enable
them to impact existing
l Do you feel like we social capital and create
accurately reflect them in new ones which could
our current work? benefit people and
nations.
l Which of our values do
you resonate most with? l Few existing long-standing
surveys designed to
l Do you think we are measure "social capital“.
missing any important
values? l Although there are distinct
advantages to social
l What are your own capital, it can be used for
personal work values? manipulative or destructive
purposes.
Always make sure you connect
your projects and daily work l Nefarious groups, such as
back to the Company values gangs and drug cartels,
and the impact you are making. often use social capital to
Everyone should be reminded strengthen bonds within
new members.
l Similarly, a group of
corporate executives may
collude to manipulate
market prices and drive
out the competition.
l The emergence of these
kinds of groups can
decrease the overall
social capital of a
neighborhood or city.
Residents and local
businesses suffer, and
potential customers avoid
the area.
l Even when social capital
is used for productive
purposes, marginalized
people may not have the
same social capital
resources as others in the
society, which can put
them at a disadvantage.
l Such people can be shut
out of opportunities
because they lack the
social capital and
network connections to
be introduced to
powerful people or learn
about good
opportunities.
l Employees must have
shared interests and
goals.
l Employees may not have
time to nurture
relationships with
employees from other

62 www.iodnigeria.org

departments or areas of
the business.
l Authority levels may get
in the way of friendship.
l Employees may stop
nurturing relationships
with employees from
their own departments.
l If employee personalities
do not mesh well, it
negatively affects team
morale.
Social Capital
Examples
Golf: Often, business people
go out onto the golf course as a
way of networking, facilitating
business, and cementing social
ties. The issue with golf
however, is that it is a rather
Social Capital In Organisations & Society
expensive sport, with strict
entry requirements in some
cases. In turn, it has become
known as a luxury sport that
only the rich can play-acting as
a socialising ground for that
socioeconomic group.
Neighbours: Having social
capital with neighbours can
prove fruitful. Perhaps you run
out of milk or sugar. So instead
of having to go to the shop,
your neighbor may be willing to
give you some. They may look
after pets or children during
vacation periods or
e m e r g e n c i e s .
Knowledge: Another example
of social capital is the transfer of
knowledge. For instance, you
may have your oven break
down whilst cooking a meal for
friends. They may have
experience with a similar issue
IO
before and are able to identify
the fix. So rather than have an
engineer come in and fix a
relatively straightforward
problem, it costs less.
Church Function: The local
Church is undertaking a
fundraising for a new Church
building. As part of the
congregation, they take it upon
themselves to invite friends and
family and post on social media.
In turn, the Church benefits
economically from the free
marketing.
Pizza Boy: Let us say you order
pizza from the same place every
time and end up seeing the
same delivery boy each time.
You get chatting and become
on good terms with them. From
the social capital that is formed,
the pizza boy may give you
some extras or a discount. At
www.iodnigeria.org 63
IO Social Capital In Organisations & Society
the same time, you may be more
willing to provide the pizza boy
w i t h a t i p .
Shared Identity: When, two
individuals share an identity,
whether it is where they come
from, religion, or hobbies, these
can connect them and create a
bond that can act as a form of
social capital. For example, we
are more likely to help another
that we feel are similar to us.
Conclusion
Social capital is a set of shared
values or resources that allows
individuals to work together in a
group to effectively achieve a
common purpose. It can also be
thought of as the potential ability
to obtain resources, favours or
information from one's personal
64 www.iodnigeria.org
c o n n e c t i o n s .
The idea is generally used to
describe how members are able
to band together in society to live
harmoniously. In business, social
capital can contribute to a
Company's success by building a
sense of shared values and
m u t u a l r e s p e c t .
Thriving organisations take their
social capital seriously. Their
teams work together. Their
employees share a purpose and
work toward common goals and
their Company functions
s m o o t h l y .
However, social capital can
manipulate people and destroy
order as is the case with drug
cartels and Companies that team
up to drive out competition.
References
1. Bryn Donovan, 2023.
Encycloppaedia Britannica
2. Chamath Palihapitiya,
2022. Annual Letter.
3. Claridge, T., 2004. Social
Capital and Natural
Resource Management: An
important role for social
capital? Unpublished
Thesis, University of
Queensland, Brisbane,
Australia.
4. Humnath Bhandari &
Kumi Yasunobu, 2009.
Asian Journal of Social
Science 37(3):480-510.
5. Richard Machalek, Michael
W. Martin, 2015.
International Encyclopedia
of the Social & Behavioural
Sciences, Second Edition.
6. The Economic Times,
2023. English Edition.
65
Exploring the role of employers
in facilitating retirement savings
-Harrison Egbudy,
Project Management Support, Pension Funds Operators
Association of Nigeria

The role of employers in facilitating retirement savings in Nigeria is

crucial for ensuring the financial security of employees. In
Nigeria, employers are mandated by law (Pension
Reform act ,2014) to contribute to the
retirement savings of their employees,
employees are also mandated by the same
law to contribute a portion of the basic
salary towards their retirement savings.
The law stipulates that employer must
contribute 10% of the employee's
emoluments while the employee
contributes 8%.

When an individual gains employment,

the employee is expected to open an
RSA account with a Pension Fund
Administrator (PFA) of their choice within
six months of gaining employment.
Selecting a PFA is not to lightly. An RSA
account is a long-term investment, sometimes
spanning over three decades. An individual must
carefully consider who he takes his or her pension
journey with and ensure their contributions are kept
in the most capable hands.
Employers have a vital role in educating and
communicating with their employees regarding the
significance of retirement savings, the various
options available, and the advantages of long-term
planning. Employers can conduct workshops,
seminars, or training sessions to provide
employees with the necessary knowledge and
understanding of retirement savings. These
educational initiatives can cover topics such as
the power of compounding interest,

www.iodnigeria.org 67
 Exploring the role of employers in
IO facilitating retirement savings
retirement planning strategies,
investment options, and the
potential risks and rewards
associated with different
retirement saving vehicles.
In Nigeria, some employers
offer matching voluntary
contributions as part of their
retirement savings programs.
This means that for every
voluntary contribution made by
an employee towards their
retirement savings, the
employer will also contribute a
matching amount. Examining
the prevalence and impact of
employer matching
contributions provides insights
into the level of support
provided by employers to
enhance retirement savings in
Nigeria. The availability of
employer matching
contributions varies among
68 www.iodnigeria.org
different organizations in
Nigeria. Some employers
choose to offer matching
contributions as an additional
incentive to encourage
employees to save for
retirement. These matching
contributions can significantly
boost employees' retirement
savings as they effectively
double the amount voluntarily
contributed.
Employers may offer flexibility
and portability options for
employees to transfer their
retirement savings when
changing jobs or transitioning
to different employment
arrangements. Understanding
the extent to which employers
facilitate these options can
influence employees' ability to
maintain and grow their
retirement savings throughout
their careers.
Ensuring a bright future starts
with employers who play by the
rules. It's crucial for them to
follow regulations when it
comes to retirement savings.
That means promptly remitting
contributions and staying on
top of reporting requirements.
By taking a closer look at
employer compliance, we can
gauge their dedication and
sense of responsibility when it
comes to helping employees
save for retirement.
Remember, when employers
step up, everyone's future
shines a little brighter.
Employers can provide
additional support and
assistance to employees
regarding retirement planning,
such as offering financial
planning resources, organizing
seminars or workshops, or
providing access to retirement
calculators. Exploring these
employer-led initiatives can
highlight efforts to empower
employees in making informed
decisions about their retirement
savings.
By exploring the role of
employers in facilitating
retirement savings in Nigeria,
individuals can identify areas for
improvement, promote best
practices, and ensure that
employers fulfill their
responsibilities in securing the
financial well-being of
employees in their retirement
years.

Unfortunately, many Nigerian
employers default on remitting
employee pensions. This is
illegal under the law. As of March
31st 2023, the National
Pensions Commission
(PENCOM) had fined defaulting
firms N24.5bn in principal
payments of contributions and
penalties for lost interest accrued
to employees. To encourage
compliance PENCOM regularly
issues Clearance Certificates to
fir ms who remit employee
pensions. In the first quarter of
2023, PENCOM issues 4,487
certificates to organisations who
remitted the sum of N103.5bn.
The welfare of workers should be
the priority of every employer.
Ensuring workers have a good
standard of living post-retirement
should be at the forefront of an
employer's thinking, this means
ensuring workers have pensions
that pay our benefits when they
are of age. Everyone including
workers, employers and
government all have
responsibility to ensure pension
regulations are being complied
with. A wealthier worker means
a wealthier state.
About PenOp
Pension Fund Operators
Association of Nigeria
(PenOp) is an independent,
non-governmental, non-
political and non-profit
making body.
PenOp was established to
promote the operations of the
pension industry, provide for
self-regulation and ensure
that international best
practices relating to the
industry are observed by the
operators registered in
Nigeria. It is the umbrella
association for all the
L i c e n s e d Pe n s i o n F u n d
Custodians, Pension Fund
Administrators and Closed
Pension Fund Administrators
(PFCs, PFAs and CPFAs)
operating in Nigeria.
Its role internally, is to add
value to its members across all
levels; information,
education, visibility,
networking, strategy, product
development, etc. Externally
its role is to increase the
awareness and visibility of the
pension industry and enable
external stakeholders
understand and participate in
the development of this
financial sub-sector wherever
and whenever possible.
www.iodnigeria.org 69
 Sights and Scenes at the 39th Annual General
Meeting of CIoD Nigeria held on Thursday 22nd
June 2023

70 www.iodnigeria.org
Sights and Scenes at the 39th Annual General
Meeting of CIoD Nigeria held on Thursday 22nd
June 2023

www.iodnigeria.org 71
Investiture Ceremony of the 18th President and Chairman of
the Governing Council of the Chartered Institute of Directors
Nigeria, Alhaji Tijjani M. Borodo, LLM, F.IoD, held on,
Thursday the 14th of September 2023

72 www.iodnigeria.org
Investiture Ceremony of the 18th President and Chairman of
the Governing Council of the Chartered Institute of Directors
Nigeria, Alhaji Tijjani M. Borodo, LLM, F.IoD, held on,
Thursday the 14th of September 2023

www.iodnigeria.org 73
 A Cross Session of Participants at the CIoD Nigeria
Advance Company Direction Course held in London
in August 2023.

74 www.iodnigeria.org
Courtesy Visit to the Doyen of Past President, Mr. Emmanuel
Ijewere, DFIoD led by the President, Alhaji Tijjani M. Borodo,
LLM, DF.IoD

www.iodnigeria.org 75
 A Cross Session of Participants at the CIoD Nigeria Chairman
and the CEO Summit Programme held in Canada in August
2023.

76 www.iodnigeria.org
A Cross Session of Participants of Implant Training Programme
organized by CIoD Nigeria for Directors of Nigerite

www.iodnigeria.org 77
 The CIoD Nigeria 2023 Fellows Investiture held on Thursday,
19th October 2023

78 www.iodnigeria.org
Sights and Scenes from the CIoD Nigeria Young Directors
Annual Conference held on Tuesday, 17th October 2023

www.iodnigeria.org 79
 The September 2023 New Members' Induction Ceremony
of 145 new members into the Chartered Institute of
Directors Nigeria held on Thursday, 21st September 2023

80 www.iodnigeria.org
 ...In Good Company

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