Theoretical Background of Corporate Governance in Nigeria

Abstract

This article delves into the theoretical foundations of corporate governance, focusing on the Nigerian context. It begins by defining corporate governance and discussing key theories, including Agency Theory and Stakeholder Theory, while acknowledging the importance of other theories. The evolution of corporate governance in Nigeria is highlighted through significant regulatory frameworks, notably the Companies and Allied Matters Act (CAMA) and the role of the Nigerian Securities and Exchange Commission (SEC). The article addresses critical challenges such as corruption, transparency, and the impact of the unitary board system, while evaluating recent reforms and improvements. By comparing Nigerian practices with international standards, it identifies areas of alignment and divergence. The conclusion synthesizes key findings, offering targeted recommendations for enhancing corporate governance in Nigeria and suggesting future research directions. This analysis serves as a valuable resource for policymakers, business leaders, and scholars interested in governance practices within emerging markets.