Corporate governance and socio-economic development in Nigeria: Tracing the nexus

Abstract

Countries need to be able to attract funding from investors in order to grow and expand its economies. Businesses need to be viable and strong so as to gain investor’s confidence. Good corporate governance is a sine qua non to attracting equity capital that can contribute to domestic sustainable growth in a country. The paper seeks to analyze the nexus between corporate governance, socio-economic factors and development through a consistent literature review. An overview of corporate governance guidelines and codes of practice as it affects the economy was looked at. The doctrinal method of legal research was adopted. The paper found that socio-economic factors are also a major determinant of corporate governance, while aggregated corporate governance is a major determinant of economic growth of a country. The paper concluded by making recommendations amongst others that, though sound corporate governance practices are not sufficient on its own to stimulate and sustain economic growth, they contribute majorly to building a sustainable socio-economic development. Thus, the social economic factors, political and legal system of a country should be blended in introduction and adaptation of corporate governance codes.