Whistle-blowing as a corporate governance mechanism: South Africa and Nigeria in perspective

Abstract

ABSTRACTCorporate misconducts present challenges to the governance of modern corporations, not least because they undermine sound corporate culture and obstruct economic growth. One of the ways through which these misconducts can be exposed is through the mechanism of whistle-blowing. This article examines the role of whistleblowing in combating corporate frauds and misconducts. Using South Africa as the ‘foil’ to Nigeria, it describes the law and role of whistleblowing in a comparative context. It finds that while South Africa has taken steps to embed sound whistle-blowing practices within its jurisdiction, the concept is virtually non-existent in Nigeria. This is because there is no comprehensive legislation on whistle-blowing in the country, coupled with the dearth of strong institutions needed for the protection of whistle-blowers. The article, while making recommendations on how the concept can be strengthened, contends that with strong legal and institutional structures, whistle-blowing can amount to a powerful tool for the entrenchment of a robust and viable corporate governance mechanism in Nigeria.