Boards in Nigeria will face intensified scrutiny and challenges in their governance practices in 2025, as the interplay of global and local disruptions continues to reshape the corporate landscape.
The country’s macroeconomic environment, influenced by inflationary pressures, exchange rate volatility, and evolving fiscal policies, will place heightened demands on boards to provide strategic oversight and maintain robust governance structures. Moreover, the current focus on economic diversification, energy transition, and social inclusion will require companies to adapt swiftly to policy shifts.
To effectively navigate macroeconomic changes, Boards must prioritise talent, robust structures, and efficient processes. Central to achieving this is the governance committee, which plays a pivotal role in ensuring the Board possesses the right skills and maintains oversight that is both effective and comprehensive. To this end, governance committees should foster a Board culture that values adaptability, embraces continuous learning especially in artificial intelligence (AI) and remains responsive to evolving challenges.
Based on insights from discussions with directors and business leaders, we highlight six issues to keep in mind as governance committees consider and carry out their 2025 agendas:
Enhancing local talent and skills to strengthen succession planning
Boards must grapple with talent retention in the face of the “brain drain” phenomenon, ensuring that succession planning and skill development are prioritised to sustain business resilience. Succession planning has never been more critical for companies navigating a volatile macroeconomic environment characterized by fluctuating oil prices, rising inflation, increasing regulatory demands, and the expansion of non-oil sectors like technology and agriculture, companies must prepare for leadership transitions that align with their strategic goals.
In 2025, governance committees should work to ensure the company has a robust pipeline of leaders who can support its strategic objectives. This involves aligning board and leadership talent with evolving market dynamics, such as digitalization and the shift toward sustainable business models.
Governance committees should assess whether the board and senior management have the necessary skills to address challenges like economic restructuring, workforce wellbeing, sustainability and technology adoption.
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