Title: Corporate governance practices as a reflection of the socio-political environment in Nigeria

Authors: Owolabi M. Bakre

Addresses: School of Business and Management, Queen Mary, University of London, 327 Mile End Road, London E1 4NS, UK

Abstract: As a result of pressure from Western-controlled institutions (World Bank and IMF) and Western multinationals, Nigeria has adopted Western-dictated corporate governance guidelines. However, this paper develops sociological theories of corruption and globalisation to provide the evidence, which shows that corruption arguably embedded in Nigeria socio-political and cultural environment continues to rule political and corporate practices in Nigeria. The paper found that multinationals that participated in enforcing Western-dictated corporate governance guidelines on Nigeria have again been collaborating with the Nigerian political and economic elite to violate Western-dictated corporate governance guidelines imposed on Nigeria. Probably, being captured by corporate interests and due to ineffective regulatory framework, regulators have been conducting shoddy examinations. Moreover, due to ineffective Supreme Audit Institution (SAI), the auditors have also been preparing misleading financial statements, in order to give |legitimacy| to the unethical business practices. This paper is of the views that with elaborate National Integrity System (NIS) covering regulation and auditing in place, what Nigeria needs are socio-political and cultural re-orientation and will and commitment on the part of the government to implement and enforce corporate governance guidelines relevant to socio-political, economic and cultural environment of Nigeria.

Keywords: corporate governance; best practices; Western economic powers; multinational corporations; MNCs; private companies; public companies; corruption; investors; stakeholders; ruling elite; Nigeria; sociological theories; politics; globalisation; culture; auditing; misleading financial statements; unethical business practices; business ethics.

DOI: 10.1504/IJCA.2011.039749

International Journal of Critical Accounting, 2011 Vol.3 No.2/3, pp.133 - 170

Published online: 18 Apr 2011 *

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