66% of Nigerian Directors Use AI Tools, CIoD Reports

A report by the Chartered Institute of Directors Nigeria (CIoD) reveals that 66% of directors in Nigeria are currently using artificial intelligence (AI) tools, while only 22% of organizations have established a formal AI governance framework. Dr.

Adeola Agbato, a representative from CIoD, emphasized the disparity in AI adoption and the necessity for organizations to develop governance structures to ensure responsible and ethical use of AI in boardroom decision-making. The report also pointed out broader corporate governance challenges, noting Nigeria's ranking of 142nd out of 182 countries on the Corruption Perception Index, with a score of 26%.

Regulatory compliance issues persist, as evidenced by 32 licensed firms sanctioned by the Nigerian Exchange (NGX), totaling regulatory penalties of N562.6 million during the review period. Mr.

Urum Ek, Chairman of the Institute of Directors, stressed the importance of improving board composition to address AI-related governance risks, particularly as many directors are not digitally native. The report calls for a commitment to promoting sound corporate governance and developing ethical competencies among directors.