THE IMPACT OF CORPORATE GOVERNANCE PRINCIPLES ON THE SUSTAINABILITY OF COMPANIES IN NIGERIA: ISSUES, CHALLENGES AND LEGAL IMPLICATIONS

Corporate governance has emerged as a fundamental mechanism for promoting accountability, transparency, ethical business conduct, and long-term corporate sustainability. In recent decades, recurring incidents of corporate scandals, financial mismanagement, regulatory infractions, and corporate failures across various sectors have intensified global concern regarding the effectiveness of corporate governance frameworks. In Nigeria, despite the existence of extensive legal and institutional frameworks regulating corporate governance, many companies continue to face significant sustainability challenges arising from weak governance practices, regulatory inefficiencies, boardroom conflicts, corruption, inadequate disclosure mechanisms, and poor enforcement of corporate accountability standards. This article examines the impact of corporate governance principles on the sustainability of companies in Nigeria. It explores the conceptual foundations of corporate governance and corporate sustainability, analyses the positive contributions of effective corporate governance practices to organizational survival and growth, and evaluates the adverse consequences associated with governance failures. The article further investigates the major issues and challenges affecting the implementation of corporate governance principles within Nigeria’s corporate environment, including regulatory fragmentation, weak enforcement mechanisms, inadequate shareholder activism, board deficiencies, institutionalized corruption, poor disclosure practices, judicial delays, and political interference. Adopting a doctrinal research methodology, the study relies on statutes, judicial authorities, corporate governance codes, scholarly literature, and relevant policy documents. The article finds that effective corporate governance remains indispensable to the sustainability, competitiveness, credibility, and long-term viability of companies. It further finds that while Nigeria possesses a relatively comprehensive regulatory framework, deficiencies in implementation, enforcement, institutional coordination, and corporate culture continue to undermine the realization of corporate governance objectives. The article concludes that sustainable corporate growth cannot be achieved without a strong commitment to good corporate governance principles and recommends stronger enforcement mechanisms, enhanced board independence, improved shareholder participation, judicial efficiency, institutional reforms, and a renewed commitment to ethical corporate conduct as measures for strengthening corporate sustainability in Nigeria.