joseph o sanusi : embracing good corporate governance practices in nigeria keynote address by dr joseph o sanusi, governor of the central bank of nigeria, at the 19th annual directors ’ seminar organised by the financial institutions training centre ( fitc ), abuja, 17 - 19 june 2003. * * * the director general, financial institutions training centre ( fitc ), chairmen and members of board of financial institutions, chief executives of banks, captains of industry, distinguished ladies and gentlemen. i feel deeply honoured to be invited to this important seminar, as the special guest of honour and for the privilege to deliver this keynote address. i should also start by congratulating the financial institutions training centre ( fitc ), which has put this seminar together, for its impressive contribution to capacity building in the financial services sector. the theme for the 2003 annual directors ’ seminar : “ balancing stakeholders interests : issues and challenges ” is quite relevant and timely, given the havoc which poor governance has wreaked on the corporate existence of many institutions and the failure on the part of many banks to uphold the tenets of good corporate governance. moreover, when placed in its proper perspective, the theme of the seminar to my mind, calls for the enhancement of standards and adoption of sound corporate governance practices by banks and their corporate customers. in this context, i will like to congratulate the management of the fitc for coming up with this discourse, which i believe would enhance participants ’ awareness of the various challenges facing the board / management of institutions in the discharge of their statutory responsibilities to their various stakeholders. perhaps, i should observe at this juncture that the role of the fitc in providing quality human development and advisory services to its clientele has not gone unnoticed, which explains the high calibre of participation at this seminar. i will like to urge the management of the institution to sustain and, improve on that legacy that has been the hallmark of the centre so that it will continue to attract top management in its future programmes. judging from its antecedents, i have no doubt in my mind that the fitc have assembled a formidable team of experts to present the seminar papers that would explore the different dimensions of the seminar theme. distinguished participants, let me caution that there is no one single factor that contributes to institutional problems than the lack of effective governance. the issue of good governance is, therefore, an imperative for ensuring successful corporate performance. building good corporate governance is a shared responsibility among all stakeholders,

these achievements have to be strengthened and replicated across africa to further promote the inter - complementarity of goods, trade facilitation and free movements of the factor of production, amongst others. the process of integration would also assist in regional infrastructure development in critical areas like energy, transport, communication / ict systems, roads and rail transportation. this would reduce production costs and increase economic activities across the continent. in addition, it would also strengthen africa ’ s political voice, improve collective negotiations to achieve more favourable outcomes on the external front. other benefits would include enhanced access to international markets and fair price for resource exploitation as well as attracting investment flows to the continent. investment in human capital africa has a young population compared to the ageing societies across the world. skill acquisition is critical to turn this resource into wealth. for example, for the manufacturing sector to take off, the new development strategy must avoid the current fragmented approach to education which is not adapted to the developmental needs of the african economies, hence, emphasis should be placed on tailoring education to growth sectors. education and training in cutting edge technologies would enable countries to adjust more swiftly to the challenges of globalization as enterprises become more flexible and better able to absorb new technologies. as such an integrated approach to education would enhance human resources development and create sufficient skilled manpower desired for the enhancement of industrial production. in particular, acquisition of requisite skills is also crucial for the development of africa ’ s informal sector, which account for the lion share of employment. in the short - term, technical and vocational skills are critical for building agroallied industries using basic technology. utilization of natural resources for development aside human resources, the continent should leverage on the vast endowment of natural resources like land, water resources, solid minerals, oil and gas and renewal energy to launch itself into the next development phase. unproductive practices such as land tenure system must be discarded, while property rights, and rule of law must be enforced. agreements on mining rights must ensure fair pricing and sustainability of these natural resources. institution of good governance and zero tolerance for corruption institutional development and good governance anchored on the rule of law are paramount for sustainable development. strong political commitment on the part of the relevant authorities is also quintessential. enhancing the operation of public enterprises is essential to address corruption and improve efficiency. like china, african countries should encourage the adoption of a zero tolerance policy against corruption by instituting severe punishment to penalize and control / eliminate corruption. 7. 0 some