Ibukun Awosika, former chairman of First Bank of Nigeria, has called on entrepreneurs to establish corporate boards tailored to their businesses’ specific needs rather than relying on revenue size or employee count. Speaking at the Building Beyond You Conference on Friday, she argued that effective governance can mitigate founder dependency and enhance investor appeal. "When you start building something with substance, you realize the value of thinking beyond yourself," Awosika said, highlighting the role of boards in providing accountability and diverse expertise.
Awosika advised founders to begin by defining their board’s objectives and then selecting members with complementary skills. She rejected the notion of a universal revenue threshold for board formation, stating that timing depends on a company’s stage and nature. "There’s no one-size-fits-all approach," she emphasized, noting that even early-stage businesses could benefit from a formal board of three to seven members, depending on their requirements.
The former banking executive stressed that board effectiveness hinges on independent perspectives rather than numerical thresholds. "A board must challenge your decisions and protect the institution’s interests," she said, adding that founders must recognize their companies as separate legal entities. This structure, she argued, safeguards institutional integrity and strengthens investor confidence.
Awosika warned against filling boards with family, friends, or investors based on relationships rather than merit. "It’s your responsibility to prioritize the institution’s needs," she stated, advocating for a "board audit" process. This involves assessing a company’s skill gaps and recruiting directors to address them. She cited her experience chairing an international firm where financial expertise dominated, leaving critical areas underserved.
The former First Bank chairman also underscored the legal obligations of board members, noting that fiduciary duties carry significant consequences. "You can face jail time for neglecting these responsibilities," she said, encouraging entrepreneurs to engage with the Institute of Directors of Nigeria for governance training. "Governance isn’t a formality—it’s a tool to prevent costly mistakes," she added.
Tara Fela-Durotoye, founder of House of Tara and conference convener, echoed Awosika’s emphasis on structured leadership. She argued that succession planning must extend beyond top executives, urging leaders to empower teams to function independently. "Being irreplaceable is a leadership failure," Fela-Durotoye stated, aligning with Awosika’s vision of institutional resilience.
Awosika’s insights come amid broader discussions on corporate accountability in Nigeria, including efforts to address fiscal challenges. While the article also mentions unrelated developments—such as Abia State’s debt reduction and Lagos economic initiatives—the focus remains on governance as a cornerstone of sustainable growth.