Organisations need to prioritise effective board evaluation to achieve greater accountability

In today’s world of work, the absence of effective board evaluation can significantly undermine an organisation’s performance, trust, and sustainability. Akachukwu Okechukwu, a seasoned legal practitioner, management consultant and corporate governance expert, shares his assessment of board evaluation in Nigeria and the future opportunities of the practice in this interview with JOHN SALAU. He said that prioritising board evaluation is critical to driving stronger performance and rebuilding public confidence in Nigeria’s corporate institutions. Excerpts:

“ A serious culture of board evaluation shows that directors are not just sitting there for prestige. They’re actually testing themselves, asking the hard questions, and making improvements where necessary. That sends a strong signal to the market.”

What is your assessment of corporate governance compliance amongst organisations in Nigeria, and what can be done to improve it?

Compliance with corporate governance standards in Nigeria has improved over the past decade; however, it remains uneven amongst various sectors. In the highly regulated sectors such as banking, insurance, and capital markets, companies generally show stronger compliance, driven by strict oversight from the CBN, SEC, NAICOM, and the FRC. However, in some other sectors, governance is still seen more as a box-ticking exercise than a genuine tool for value creation.

Some common challenges include limited awareness of governance principles, especially in family-owned and small to medium enterprises, relatively weaker regulatory enforcement in some sectors, as well as resistance from the leadership of some companies who see governance as a burden rather than an enabler.

To improve compliance, several steps are necessary. These include stronger regulatory enforcement, capacity building for directors, company secretaries and the management team, regular, honest board evaluations as well as enhanced technology deployment of technology.

From a professional standpoint, why is board evaluation so important in today’s Nigerian corporate environment?

In recent years, corporate governance has taken centre stage in Nigeria’s business and financial landscape. At the heart of this evolution is the growing recognition that effective boards are critical to organisational performance, trust, and sustainability.

The Board provides guidance and leadership oversight for an organisation. It sets vision and strategic goals, ensures management executes the same effectively and safeguards the interests of the shareholders and other stakeholders. In other words, the effectiveness of any organisation largely depends on the effectiveness of its governance structure, especially the board.

Again, the success of an organisation depends on patronage, which in turn depends on the trust it has cultivated amongst its various stakeholders.

Thus, for greater accountability and optimised effectiveness, a periodic evaluation of the Board is required. This is to assess the Board’s performance, identify gaps (whether in composition, commitment, skills, independence, amongst other factors) and provide a basis for continuous improvement.

To put it simply, Board evaluation provides a foundation for stronger corporate performance and for rebuilding trust in Nigeria’s corporate sector.

How should board evaluation address issues of diversity and inclusion?

I think the first thing to say is that diversity isn’t just about ticking a box for gender, profession or age. It is about whether the board really has the mix of perspectives it needs to see the full picture. A good board evaluation should dig into this. It should ask: Do we have the right balance of skills? Do we have directors who bring different industry experiences, different ways of thinking? Because when everyone around the table looks and thinks the same way, you will most likely miss important blind spots.

Inclusion is just as important. It is one thing to have diversity on paper, but another to create an environment where people actually feel encouraged to speak and their contributions are respected. An evaluation should check whether the culture of the board allows every director, whether new, young, female, or independent, to be heard. Otherwise, diversity is wasted.

So for me, board evaluation should not just count numbers; it should look at how those differences are being used to make the board stronger, more dynamic, and more in touch with the world it operates in.

How can board evaluations strengthen investor confidence in Nigerian companies?

Investors, whether local or foreign, are always asking one basic question: Can I trust this company with my money? And the trust really starts with the board. A serious culture of board evaluation shows that directors are not just sitting there for prestige. They’re actually testing themselves, asking the hard questions, and making improvements where necessary. That sends a strong signal to the market.

When investors see that a board is willing to review its own performance, refresh its membership, or even invest in training after an evaluation, it tells them the company is committed to accountability and long-term value. In a market like Nigeria, where confidence has sometimes been shaken by governance lapses, that kind of transparency can make all the difference. It reassures investors that the board is awake, proactive, and aligned with their interests.

What are the challenges Nigerian boards face with evaluation?

Some boards may be reluctant to undertake an evaluation or optimise the process due to several reasons. Firstly, a board that views the process as a mere compliance requirement will certainly not get the best out of it. Again, some directors may view such an evaluation as a threat to their position and may be reluctant to undertake it or, where it does, to do so with sincerity and openness. Some boards may also nurse fears that sensitive feedback may leak. This discourages honest participation. Other boards may use a ‘one size fits all’ model rather than a model tailored for its specific industry, strategy and risks. Again, some boards are not even well enlightened on the importance of this process, and cost considerations may also discourage a board from an independent 3rd party facilitated evaluation.

Even when evaluations identify gaps, many boards often fail to implement action plans or track progress.

How would you advise a Company to approach its Board evaluation?

Globally, the best practice on board evaluation goes beyond a box-ticking compliance exercise. It is about creating a culture of continuous improvement at the board level. Thus, it must be done periodically and not a one-off exercise. It should also honestly and comprehensively assess the Board as a whole- its committees, and the contribution of individual directors. It should cover strategy oversight, risk management, diversity, culture, succession planning, and stakeholder engagement. The outcome should induce action and not merely end with a glossy report. Overall, the process should be honest, rigorous and forward-looking.

There are basically 3 layers of evaluation: The internal assessment, usually facilitated by the Chairman or Company Secretary, using a structured questionnaire. We have the Peer review assessment in which the Directors assess each other, and lastly, the independent 3rd party evaluation.

In Nigeria, CAMA 2020 and the NCCG 2018 both encourage structured, independent assessments at intervals. Board evaluation becomes most impactful with the combination of self-reflection and external validation.

In practice, does board evaluation actually translate to stronger corporate performance?

When done properly, yes. Doing it properly means the company treating board evaluation as not just a compliance requirement but rather a performance tool, and the evaluation process being undertaken with sincerity of purpose, especially from the board.

In this situation, board evaluation keeps the directors focused on the strategic goals, identifies areas of improvement and signifies accountability, which in turn boosts investor and public confidence.

Where there is follow-up action on the outcome, such as board renewal, training and strategy reviews, then the process is sure to guarantee visible improvement in corporate performance.

Getting the buy-in of stakeholders in Nigeria to adopt an important practice like board evaluation is a huge challenge. What would you say is the best approach to win over doubters?

The key is to shift the narrative from board evaluation being a regulatory burden to it being a business advantage. Many stakeholders resist because they see it as a cost, a threat, or simply a compliance ritual. To win them over, the tangible value of board evaluation needs to be demonstrated.

This clarion call is for regulators, company secretaries and other governance professionals. We need to create sufficient education and awareness on what board evaluation truly means: continuous improvement, stronger performance, and enhanced trust. Training sessions and workshops help demystify the process.

We also need to show how effective evaluations translate to better decision-making, improved risk oversight, higher investor confidence, and even access to cheaper capital. When stakeholders see the commercial benefit, they are more likely to support it.

The reluctance can be eased by starting with a Safe Process, such as internal assessments that create a comfortable, confidential space for feedback before moving to external evaluations. This reduces fear and suspicion.

Implementing some of the recommendations from early evaluations, such as board training, improved board composition and better risk management, can bring visible improvements, building credibility and trust in the process.

The impact of Regulatory and Peer Pressure cannot be overemphasised. When regulators persistently insist and companies also see competitors or industry leaders adopting the practice successfully, it creates positive pressure to follow suit.

What is your view on the future of board evaluation in Nigeria?

The future of board evaluation in Nigeria will be shaped by 3 major factors: increasing demand for compliance by regulators, growing shareholders’ clamour for accountability and rising level of awareness by companies of how the process assists in improving strategy, risk oversight, and governance culture.

With these driving forces in full gear, I see companies embracing the process, whether out of internal conviction or regulatory/shareholders’ compulsion. I see board evaluations progressing beyond a ritual.

I see an increased integration of evaluation with technology. I see greater transparency and governance disclosures. Future evaluations will not only assess financial oversight but also how boards handle environmental, social, and governance (ESG) responsibilities, a fast-rising global standard.

From your experience, what practical steps would you recommend for Nigerian companies?

I will start by urging companies to treat this as part of continuous improvement, not an annual compliance ritual. A combination of internal and external assessments should be used. A safe, confidential environment where directors can give candid feedback without fear of repercussion will encourage honest participation. There should be clarity on what the company intends to achieve through the process. The tools and questionnaires should also be customised to the company’s strategy, size, and industry risks, rather than using generic templates. Companies should also leverage technology, for instance, by using digital platforms for anonymous surveys and data analysis.

Other practical steps include following up on the outcome with action, reviewing and tracking progress on action, and linking evaluation outcomes to tenure renewals.