Some financial experts yesterday attributed the rising unemployment rate in the country to poor corporate governance.

They agreed, in separate interviews with newsmen in Lagos, that sound corporate governance was a veritable tool for a stronger Nigeria.

The immediate past President, Association of National Accountants of Nigeria (ANAN), Dr Samuel Nzekwe, said that the 2008 banking crisis, which led to downsizing of staff strength in that sector, was a consequence of poor corporate governance.

He said that lack of corporate governance in Nigerian companies had resulted to wrong budgeting and planning.

“It is also responsible for statutory problems, inappropriate board membership, bad management of corporate resources and strategic issues, and lack of accountability.

“A company that fails the accountability test will surely fail in human resources management.

“The strength of a nation depends largely on the ability to raise quality of life of its citizens and create conducive environment,’’ Nzekwe said.

According to him, the central determinant of economic wellbeing is not just the Gross Domestic Product (GDP) or the size of the economy but the number of employment created.

The General Manager, Standard Alliance Insurance Ltd., Mr Olumide Adegoke, said that poor corporate governance had fuelled the unemployment crisis in the country.

He, therefore, urged the federal and state governments as well as private sector operators to take active part in achieving good corporate governance.

Adegoke also suggested that the corporate code should be a compulsory guideline for establishing companies in the country.

The general manager said that this would enhance sustainable growth in both the private and public sectors of the economy, adding that it would also reduce poverty.

“Good corporate governance should be a tool for a sustainable and stronger nation,” he said.