Legal Appraisal of Gender Diversity in Nigerian Quoted Companies

Abstract

Gender diversity is a global issue as corporations agree that it is fundamental to sustainable business practices. Accordingly, there is a benchmark for international best practices which advocates for gender parity in the workplace. This has led several countries to voluntary interventionist methods as well as laws and codes of corporate governance across the globe in order to comply with the international benchmark. However, research had shown that Nigeria has not adopted this benchmark which has resulted to the lack of gender diversity. This study appraised corporate governance and gender diversity in Nigerian quoted companies. This study adopted a phenomenology research design. The population comprised of 1,297 directors of Nigerian quoted companies. Creswell’s recommendation was used in arriving at a sample size of 62. Random sampling and snowballing techniques were adopted in selecting the respondent, comprising of 47 men and 15 women. A validated interview discussion guide was used to collect the data. Reliability was evidenced by the stakeholder’s theory. The response rate of 100% was achieved. Data were content and thematically analyzed. Findings revealed that in Nigeria, there is no primary law on corporate governance and gender diversity. Rather, there are secondary laws particularly the national codes of Financial Reporting Council (FRC) and the Securities and Exchange Commission (SEC), which have weak implementation, poor enforcement mechanisms and uncertainty regarding legal status of the codes. Also, the underrepresentation of women’s ascension to top directorship positions is embedded in the African socio-cultural patriarchy.Furthermore, findings revealed that there is a different yardstick for measuring gender diversity in the Nigerian quoted companies which differs significantly from the international standard best practices. This study concluded that there is no adequate legal regulation on gender diversity and corporate governance in Nigeria. The study recommended deliberate policy endorsements for a mandatory legislative quota. The Nigerian Stock Exchange in line with SEC, Central Bank of Nigeria and FRC should effectively champion the cause of boardroom gender diversity and enhance its awareness and implementation in the Nigerian quoted companies.