NGX Chairman Calls for Stronger Corporate Governance in Nigeria
Strong Governance Critical for Investor Confidence
The Chairman of Nigerian Exchange Group (NGX Group), Umaru Kwairanga, has called for stronger corporate governance practices across Nigeria’s business environment. Speaking at the launch of the Chartered Institute of Directors (CIoD) 2026 Corporate Governance Outlook, he emphasised that integrity, accountability, and transparency are essential to sustaining economic growth and investor confidence.
Governance as a Strategic Imperative
Kwairanga stated that corporate governance must move beyond regulatory compliance to become a core strategic tool for building resilient institutions. He noted that governance frameworks now play a critical role in enabling businesses to adapt to economic shifts and technological disruptions.
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He urged corporate leaders to embed governance principles into organisational culture, stressing that strong governance supports long-term value creation and institutional stability.
Investor Confidence and Market Integrity
The NGX Chairman highlighted the direct relationship between governance standards and investor trust. According to him, transparent and accountable corporate practices remain fundamental to attracting both domestic and foreign investment into Nigeria’s capital market.
He described corporate governance as the “bedrock of resilient institutions,” noting that it enhances transparency and strengthens market credibility.
For a market seeking deeper liquidity and broader participation, governance reforms are essential to maintaining confidence among institutional and retail investors.
Role of Stakeholders in Strengthening Governance
Kwairanga called for closer collaboration among regulators, operators, and professional bodies to strengthen governance frameworks. He referenced partnerships involving the Chartered Institute of Directors (CIoD), NGX Group, and other stakeholders as critical to advancing governance standards across corporate Nigeria.
This coordinated approach is expected to improve regulatory enforcement, enhance board oversight, and promote best practices in corporate leadership.
Capital Market Context and Performance
The call for stronger governance comes amid improved performance in Nigeria’s capital market. NGX Group reported strong financial results in 2025, including:
Core revenue growth of 36 percent to ₦22.9 billion
Operating profit increase of 44.4 percent to ₦11.8 billion
Profit before tax rising to ₦15.6 billion
Total assets reaching ₦71 billion
These gains reflect increased market activity and operational efficiency, but sustaining momentum will depend on maintaining high governance standards.
Implications for the Economy
Strengthening Financial Markets
Robust corporate governance enhances market transparency, reduces systemic risks, and supports efficient capital allocation.
Attracting Investment
Investors prioritise markets with strong governance frameworks. Improved standards can increase foreign portfolio inflows and deepen domestic participation.
Supporting Economic Growth
Well-governed institutions are better positioned to drive innovation, manage risk, and contribute to long-term economic development.
The call by the NGX Chairman underscores the central role of corporate governance in Nigeria’s economic trajectory. As the capital market continues to expand, embedding transparency, accountability, and strong oversight into corporate structures will be essential to sustaining investor confidence and institutional resilience.
For policymakers, regulators, and corporate leaders, strengthening governance frameworks remains a critical priority for building a more competitive and sustainable financial system.
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