Strategy in Corporate Governance

By Temilade Okesanjo In Nigeria, many companies have embraced the importance of a strategic plan in corporate governance. Major companies in Nigeria have realised the need to adopt a strategic plan that will focus on improving their corporate governance practices, with the goal of ensuring that they remained competitive and compliant with global standards. By […]

By Temilade Okesanjo

In Nigeria, many companies have embraced the importance of a strategic plan in corporate governance. Major companies in Nigeria have realised the need to adopt a strategic plan that will focus on improving their corporate governance practices, with the goal of ensuring that they remained competitive and compliant with global standards. By having a strategic plan, they are able to identify key issues and areas that needed improvement, such as transparency, accountability, and ethical practices.

Corporate governance is the set of processes, principles and frameworks that help organizations achieve their goals by promoting ethical and responsible decision-making, these includes not only the management of risk and compliance, but also the establishment of strategies, objectives, and policies on how the organization intends to achieve its goals. Therefore, it is important for organizations to have a strategic plan in place to guide their corporate governance efforts.

Dangote Group, one of Nigeria’s largest conglomerates. Dangote Group has adopted a strategic plan that focuses on: sustainability, risk management, and compliance. This strategic plan has helped the company to improve its operations, including reducing its carbon footprint and improving the well-being of its employees.

The central Bank of Nigeria (CBN) has also emphasized the importance of strategic planning in its corporate governance guidance. In 2014, the CBN released the Code of Corporate Governance for Banks and Other Financial Institutions in Nigeria. This code required all financial institutions to develop and implement a strategic plan that aligned with their overall objectives. CBN has also mandated that all financial institutions assign responsibilities to their board members, which ensures accountability and transparency.

Strategic plan can have a significant impact on corporate governance. It provides a framework that promotes ethical and responsible decision-making, improves transparency, and enables accountability which automatically improves corporate governance practices. There is a need for Nigerian private and public sector to make strategic planning a priority to improve their overall corporate governance.

Okesanjo is a Project/Business Consultant