Board independence is critical to ESG oversight. Independent directors bring objectivity, enhance transparency, and challenge executive decisions—especially on sustainability risk and ethical conduct. In Nigeria, ESG pressures are prompting boards to diversify expertise, establish sustainability committees, and adopt long-term value perspectives. However, challenges remain around tokenism and political influence in board appointments.
Independence of the board members is very necessary and desirable for a hitch-free ESG governance in Nigerian Banks. One of the key roles played by the independent board members is that of oversight. They can do this by ensuring policy consistency; embarking on effective monitoring and evaluation exercise aimed at ensuring ESG compliance consistent with local and global best practices. The independent directors can also facilitate the process of bring on board, the requisite technical and financial expertise needed for a effective and efficient ESG governance in the Nigerian Banking sector. Most importantly, the independent directors in the board can play the role of ensuring proper stakeholders engagement and collaboration on ESG governance in the Nigerian Banking sector.
Dear Yusuf Ja'afar, I do agree with your positions. Oversight activities are critical to the compliance with ESG.
- Badges
- Science topic