Which corporate governance mechanisms are significant with the Nigerian SEC Compliance Score?

Corporate governance mechanisms, encompassing board composition, oversight committees, ownership structures, executive incentives, transparency practices, shareholder rights, auditing frameworks, and accountability systems, are pivotal to ensuring organizational integrity, mitigating risks, and fostering sustainable value creation. This study investigates how these mechanisms interact with the Nigerian Stock Exchange (NSE) Compliance Score (Nigerian Securities Commission, 2023), a composite metric evaluating adherence to regulatory standards. By analyzing 148 Nigerian firms (2019–2025) across diverse sectors, the research employs panel regression models to assess the impact of control variables such as firm size, leverage, liquidity, asset tangibility, sales growth, business diversification, natural risk management, industry, risk exposure, GDP growth, inflation, foreign exchange exposure, political connections, and regulatory stringency. Findings reveal that larger firms exhibit lower compliance scores due to complex governance challenges, while firms in high-risk industries (e.g., oil, mining) face heightened scrutiny. However, robust transparency and shareholder rights correlate positively with compliance, underscoring the importance of institutional safeguards. These insights offer actionable guidance for policymakers and corporate leaders to enhance governance resilience in Nigeria’s evolving market.