Professor Fabian Ajogwu (SAN), a prominent figure in corporate governance, has highlighted the crucial responsibility boards of directors hold, particularly in state-owned enterprises, regarding the implementation of Environmental, Social, and Governance (ESG) strategies. During an intensive program designed to enhance corporate governance and board effectiveness for the management staff of the Bureau of Public Enterprises (BPE), he stressed that the Nigerian Code of Corporate Governance 2018 mandates that boards define ESG strategies, manage associated risks, and promote stakeholder engagement. This program was organized by the Centre for Public Sector Governance, affiliated with the Society for Corporate Governance Nigeria, illustrating the importance of ensuring that corporate governance aligns with national standards and practices.
Ajogwu emphasized the integration of ESG into corporate risk management, pointing out that ESG-related risks have a significant impact on financial stability and the generation of long-term value for organizations. He urged boards to actively identify and disclose these risks, positioning sustainability as a fundamental component of corporate objectives. By addressing ESG concerns, companies can see improvements in their long-term financial performance and increase their competitiveness in the market. This perspective underscores a shift towards long-term planning and operational efficiency, highlighting the vital connection between responsible governance and business success.
The Centre for Public Sector Governance, which is set to be officially launched on November 19, 2024, aims to bolster governance practices across Nigeria’s public sector. Ajogwu explained that the center’s mission includes fostering a transparent and effective governance system at all levels of government by providing specialized training and education for directors and leaders within public-sector entities, which encompass government parastatals, agencies, departments, and ministries. The focus is on equipping these leaders with the necessary knowledge and standards to enhance efficiency and transparency in their operations.
In recognizing the role of this governance training for the BPE board, Ajogwu commended the BPE Director-General, Mr. Ayodeji Gbeleyi, for implementing essential measures to improve governance within Nigeria’s public sector. This support is crucial for ensuring that public entities adhere to the best practices in corporate governance, ultimately leading to better operational outcomes. Such initiatives empower public sector leaders and enhance their capacity to meet the governance challenges they face in a rapidly changing environment.
Beyond capacity-building programs, the Centre for Public Sector Governance is committed to fulfilling several additional roles to support governance improvement. These include advocacy efforts, conducting research, and publishing thought leadership materials aimed at promoting knowledge and understanding of effective governance practices. The center will also engage in producing reports and baseline surveys to illuminate governance standards within the public sector. This multifaceted approach is designed to guide policy development and implementation, facilitate the establishment of governance frameworks, and drive structural reforms intended to elevate governance standards.
As a not-for-profit organization, the Centre for Public Sector Governance is positioned to make a significant impact on public sector governance in Nigeria. Dr. Ernest Ndukwe, OFR, leads the advisory board, bringing valuable expertise to the center’s initiatives. Through its comprehensive training programs, advocacy actions, and research initiatives, the center aims to create a robust foundation for improved governance practices, contributing to a more transparent and effective public administration that ultimately benefits the Nigerian populace.
