Blair: Nigeria Not Achieving Full Potential Due to Corruption, Lax Corporate Governance

                                                

The Chairman and Founder of Omnia Strategy LLP, Mrs. Cherie Blair, Tuesday said the menace of corruption and lax corporate governance were currently hurting Nigerian companies and limiting the country's ability to achieve its full economic potential. She said a lot still needed to be done in terms of contract enforcement and strict adherence to the rules of business.

Speaking in Abuja at the 10th Henshaw Private Equity Seminar on Private Equity and Policy tagged: 'Enabling Policies and Corporate Governance: Twin Levers for International Investment', Blair said the present culture of impunity even where rules are applied, was not only unacceptable but a disincentive for global private-equity investors hoping to explore emerging opportunities in the country. She said the best way to go was for government and companies to enact enabling policies to sincerely implement good corporate governance and punish infringements.

Blair said it was not enough to merely investigate a wrongdoing without meting out appropriate sanctions to those who broke the rules regardless of who they are. She said although every country including the United Kingdom had had to fight corruption at various point in time, the approach in handling the menace was more critical. Omnia Strategy boss said the UK had to severally apply the full wrath of the law including outright confiscation of properties and imprisonment whenever there were infractions. While describing corruption as insidious, she said Nigeria had a commendable template for fighting the menace but implementation had often been a major concern. She said although widely regarded as Africa's powerhouse, where investors are looking forward to invest, the complication of cross-border business had necessitated the need for strict adherence to contracts with significant level of transparency. Blair also highlighted the imperativeness of creating incentives and reward system for good behaviour as well as transparency in handling issues. Her comments came on a day it was revealed that business executives now see the present insecurity as greatest challenge to doing business in the country more than the issue of corruption which had been in the front burner for decades.

The survey, which was conducted by the NOI Polls also indicated that almost all business executives had affirmed that they had paid bribes at one time or the other to public officials in the course of business transactions. Chief Executive Officer of NOI Polls, Oge Modie, said during an Enabling Policies Panel session which was chaired by THISDAY Newspapers’ Editor, Ijeoma Nwogwugwu, that apart from insecurity, businesses were more concerned about smuggling, power, finance, corruption - situations which tend to suggest that Nigerians might have become accustomed to corruption. Modie said a comprehensive report on the study was expected to be made public soon.

 Also speaking at the occasion Tuesday, Minister of State for Power, Mrs. Zainab Kuchi, said the federal government had done all that needed to be done to encourage local and foreign investment in the power sector, particularly the renewal energy which she said would offer much cheaper electricity to Nigerians.