Given the global business environment dynamics, the boardroom has evolved from a space of ceremonial oversight to a crucible for dynamic leadership, ethical scrutiny, and strategic foresight. As technological advances, climate imperatives, geopolitical shifts, and evolving societal expectations intensify, board directors worldwide, particularly in emerging economies like Nigeria, must fundamentally rethink what actual competence entails.
As Africa’s largest economy with over 200 million people, it presents both a compelling opportunity and a uniquely complex operating environment. The nation’s youthful population, urban growth, and increasing digital adoption position it for significant economic advancement. However, persistent macroeconomic challenges such as inflation, currency volatility, energy crises, infrastructural deficits, and policy inconsistency require directors to move beyond traditional experience to embrace adaptability, resilience, and long-term vision.
Competence today must be rooted not in static knowledge but in a dynamic capacity to question assumptions, envision possibilities, and respond with agility and integrity. As leadership expert Linda Hill of Harvard Business School suggests, leadership is not about having all the answers but creating a context where others can think, innovate, and grow. This urgency is mirrored globally. According to PwC’s 27th Annual Global CEO Survey, 63% of CEOs in the Asia-Pacific region believe their companies will not survive the next ten years without a fundamental reinvention. This alarming statistic resounds loudly within Nigerian corporate circles, which son the fact that reliance on past success is no longer tenable. Directors must develop forward-looking capabilities that enable them to lead through uncertainty and innovation.
A redefined understanding of competence highlights several core capabilities that every director must cultivate. Among these is a deep literacy in Environmental, Social, and Governance (ESG) principles. Kristin Hull, CEO of Nia Impact Capital, reinforces this by stating that “what gets measured gets managed”. Although 100% of directors globally have discussed at least one sustainability topic in the past twelve months, fewer than 20% understand how climate goals impact capital allocation. This knowledge gap is particularly a concern in our nation, where issues such as environmental degradation, youth unemployment, and the energy transition are central to national discourse. Directors must learn to assess net-zero targets, scrutinise supply chain ethics, and align governance with the United Nations Sustainable Development Goals to ensure genuine and measurable impact.
Furthermore, technological fluency has become indispensable. According to Ruth Porat, CFO of Alphabet Inc., she opined that technology is no longer a support function; it is the business. With our business environment driven by a growing digital economy, the expansion of fintech, telecommunications, and a vibrant startup ecosystem, board members must understand concepts like cloud computing, cybersecurity, data governance, and AI ethics. Despite 75% of directors recognising the importance of generative AI and cybersecurity technologies, according to the PWC report cited earlier, few possess the expertise needed for effective oversight. As Mary Galligan, a former FBI Cyber Division executive, affirms, cybersecurity is not a technical issue but a board-level concern requiring informed governance.
Understanding global dynamics is another critical dimension of boardroom competence. Ian Bremmer, President of the Eurasia Group, emphasises that boards can no longer afford to react passively to geopolitical changes. For Nigerian directors, navigating regional instability, inflationary pressures, global trade dynamics, and currency depreciation requires an embedded culture of scenario planning, risk monitoring, and incorporation of international perspectives into boardroom decisions.
At the core of corporate governance lies ethical judgment and integrity. As noted by Mervyn King, the Chairman of the King Committee on Corporate Governance, postulated that “governance is about doing the right thing even when no one is watching”. This principle holds even greater weight in Nigeria, where public trust in institutions remains fragile. Directors must foster transparency, advocate for whistleblowing protections, and ensure inclusive stakeholder dialogue. Indra Nooyi, former CEO of PepsiCo, aptly observes that trust is the currency of the boardroom, highlighting that strategic competence means little without moral credibility.
However, strategic agility and a commitment to lifelong learning are becoming another defining feature of director effectiveness. As futurist Alvin Toffler warned, the illiterate of the 21st century will not be those who cannot read and write but those who cannot learn, unlearn, and relearn. According to a recent FTI Consulting survey, 76% of directors focus on growth through new markets in 2024, and the ability to continuously adapt strategy is paramount. Yet, 41% of directors identify strategy, not cybersecurity, as their most difficult oversight area. To address this, board members must engage in executive education, immerse themselves in evolving industries, and connect with younger innovators. Brian Moynihan, CEO of Bank of America, notes that a board that stops learning is a board that starts failing.
Diversity, though increasingly acknowledged, remains underutilised. According to PwC’s 2024 Annual Corporate Directors Survey, while 53% of directors recognise that diversity adds value through varied perspectives, only 25% believe it enhances performance. This reflects a widespread failure to translate representation into meaningful impact. In our nation, where gender, generational, and professional diversity are still evolving, boards must progress from tokenism to transformative inclusion. Vernā Myers, a famous diversity consultant and author, articulates this well by stating that diversity is being invited to the boardroom, inclusion is being asked for your opinion, and equity is when your input changes the outcome. Furthermore, courageous communication and stakeholder engagement serve as a vital competence skill for board directors. Insights from FTI Consulting’s 2024 report reveal that only 11% of directors currently prioritise shareholder activism, and 82% believe that C-suite leaders should avoid engaging in controversial public issues. However, today’s era of radical transparency demands proactive and authentic communication. With respect to Nigeria's complex political and cultural landscape, silence is often perceived as complicity. Boards must, therefore, develop communication strategies that reflect ethical clarity and strategic direction.
The Chartered Institute of Directors (CIoD) Nigeria encapsulates this evolution, asserts that tomorrow’s directors must blend ethical foresight with data mastery and that governance has become both human and digital. Boardroom competence now transcends the Intelligence Quotient (IQ) and Emotional Quotient (EQ) to encompass the Moral Quotient (MQ), which serves as the compass of modern leadership.
Redefining competence is not merely a theoretical exercise but a strategic necessity. The future hinges on resilient and responsive boardrooms, visionary and value-driven. It is time for directors to rise beyond tradition, embrace transformative leadership, and champion governance that delivers purpose alongside performance. To navigate the challenges of tomorrow, boardrooms must evolve beyond traditional skills. Embracing moral leadership is the key to building resilient, ethical, and forward-thinking organisations.
Research & Advocacy Department,
Chartered Institute of Directors (CIoD)
28, Olawale Edun Road (Formerly Cameron Road), Ikoyi, Lagos.