Annexing Artificial Intelligence to the Corporate Governance of Small and Medium-scale Enterprises (SMEs) in Nigeria
No Thumbnail Available
Date
2025
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Department of Business Law Obafemi Awolowo University
Abstract
A company’s success is often rooted in its adherence to the principles of corporate governance. The major drivers of this success are usually the company boards, managers, and shareholders. These actors play a crucial role, from making quality decisions to ensuring proper management. However, in the face of the increasing use of data-driven solutions, these human actors are limited in meeting their conventional responsibilities. This has occasioned the need for the infusion of other complementary actors that will support the intelligence of human actors. This article details the significance of Artificial Intelligence (AI) in relation to corporate governance. Upon the examination and analysis of literature, the article makes a case for why companies, especially those within the corridors of Small and Medium-scale Enterprises (SMEs) need to adopt AI in virtually every area of their operations. It argues that, notwithstanding supporting arguments on the benefits of the use of AI, it is accompanied by many problems that make it discouraging to prospective users. However, it is noted that the accompanying problems can be solved through the establishment of AI regulatory frameworks. Significantly, this article acknowledges that the use of AI-powered tools in corporate establishments is not recognised by Nigerian Company laws like the Companies and Allied Matters Act (CAMA) 2020 and other enabling corporate governance codes within the Nigerian Corporate legislative frameworks. It recommends that existing company laws, corporate governance codes, and rules be overhauled to not only accommodate AI use but also to infuse regulatory clauses where necessary.
Description
Keywords
Artificial Intelligence, SMES, Corporate Governance, Boardrrom, Nigeria
Citation
3. Ugowe, A. O. (2025). Annexing Artificial Intelligence to the Corporate Governance of Small and Medium-scale Enterprises (SMEs) in Nigeria. Ife Business Law Review, 7, 28-40, Published by Department of Business Law Obafemi Awolowo University