66% of directors now use AI tools – CioD
The growing adoption of Artificial Intelligence (AI) by corporate boards in Nigeria is outpacing governance and oversight mechanisms, raising concerns about the risks associated with the technology, according to the Chartered Institute of Directors Nigeria (CIoD). The concern was highlighted in the institute’s State of Corporate Governance Report (January–June 2026), which assessed the country’s corporate […]
The growing adoption of Artificial Intelligence (AI) by corporate boards in Nigeria is outpacing governance and oversight mechanisms, raising concerns about the risks associated with the technology, according to the Chartered Institute of Directors Nigeria (CIoD).
The concern was highlighted in the institute’s State of Corporate Governance Report (January–June 2026), which assessed the country’s corporate governance landscape.
Presenting the report, CIoD Director of Advocacy and Stakeholder Engagement, Dr. Adeola Agbato, disclosed that while 66 per cent of directors now use AI tools in their work, only 22 per cent of organisations have formal AI governance and oversight frameworks in place.
“Our data revealed that, in Nigeria, during the period under review, there was a 66 per cent AI adoption by directors using AI tools. However, in terms of formal AI oversight processes in place, there were only 22 per cent. So, there’s a disparity between adoption and AI governance,” she said.
Agbato noted that the findings underscore the need for organisations to develop governance structures that ensure the responsible and ethical use of AI in boardroom decision-making.
The report also highlighted broader corporate governance challenges, noting that Nigeria ranked 142nd out of 182 countries on the Corruption Perception Index, with a score of 26 per cent.
She added that the country’s transparency score remained below the Sub-Saharan African average, while regulatory compliance issues persisted.
According to her, 32 licensed firms were sanctioned by the Nigerian Exchange (NGX), with total regulatory penalties amounting to N562.6 million during the review period.
Responding to the findings, Chairman of the IoD Centre for Corporate Governance, Mr. Urum Eke, said improving board composition would be critical to addressing AI-related governance risks.
According to him, many boards are dominated by older directors who are not digital natives, making it more difficult to effectively oversee emerging technologies such as artificial intelligence.
“If you look at the average age of directors, they’re all over 40. They are not digital natives. The digital natives are the younger folks. When you want to have conversations around AI, you’ve got to look at the board composition so that those subject matters that will influence the future can be surfaced by the persons that are right there in the boardroom,” he said.
Eke noted that many leading global corporations have younger chief executives and more diverse boards, arguing that Nigeria should embrace similar changes by creating greater opportunities for younger professionals in corporate leadership.
He said recognising the potential of younger generations would help organisations respond more effectively to the technological changes shaping the future of business.
Also speaking, Chairman of CreditRegistry, Dr. Fatunmata Soukouna Coker, said efforts were underway to strengthen AI adoption within corporate institutions while ensuring appropriate governance frameworks are put in place.
Earlier, President and Chairman of the Governing Council of the Chartered Institute of Directors Nigeria, Otunba Adetunji Oyebanji, reaffirmed the institute’s commitment to promoting sound corporate governance and developing ethical, competent directors.
He said the institute would continue to support governance reforms and build leadership capacity through its flagship director development programmes and customised executive learning initiatives designed to strengthen institutions and create long-term value for the Nigerian economy.