is inadequate adherence to auditing standards and professional ethics. Furthermore, ethical codes for auditors in Nigeria are not consistent with international standards. Nigerian accounting firms are not precluded from providing auditing and consultancy services to the same client, thereby creating potential conflicts of interest. The mechanisms for enforcement and compliance at the Corporate Affairs Commission (CAC) are very weak, and penalties are often out of date. Most companies do not comply with the requirement to file a copy of their audited statements and directors’ reports. The CAC, however, rarely applies any sanctions. 3.44 The level of governance which exists today in Nigeria provides an inadequate check on boards of directors. Many Nigerian companies have failed in the areas of disclosure and transparency. Corporate governance abuses have seen insiders strip companies of their assets by various means. Directors have also sometimes failed to perform their fiduciary duties to protect the company’s assets and interests. There are instances of inaccurate, sometimes deliberately misleading, reports by companies. These understate profits in order to evade tax liabilities, and overstate the financial viability and liquidity of corporations in order to sustain investor confidence unjustifiably, even when the corporations are failing. There was general agreement among participants that the incidence of quacks – unqualified people who claim knowledge and other skills in their field – in some professions (in particular insurance brokering) may not be the exception. Quacks and violators tend to be protected by ‘godfathers’ and the prevailing culture of impunity. 3.45 Merit as a standard for appointing directors in the public sector is low compared to the private sector. Corporations in the public sector are influenced largely by current political trends, combined with geographical zoning. The managers of many listed companies do not establish organisation and support functions for monitoring and organising, or for briefing staff on, and notifying them of, corporate policies and procedures. Weaknesses in strategic management typify the situation in the Nigerian corporate sector. More women should also be promoted to leadership and strategic positions in corporations. 3.4 Socioeconomic development 14 3.46 Nigeria is a country of extreme paradoxes, with widespread and endemic poverty in the midst of plenty. The country is richly endowed with human and natural resources, particularly oil and gas. There are also many mineral deposits like coal, gold and sulphur. With a real GDP of US$58.4 billion and a population of about 140 million, Nigeria is one of the four largest economies in Africa and by far the continent’s most populous country. Despite this rich human and resource endowment, Nigeria’s per capita GDP is only about US$752. Poverty is widespread, with about 54 per cent of the population living on less than US$1 per day. 3.47 Despite a plethora level of economic disappointing. The production sector. of development policies and programmes, Nigeria’s development over the past four decades has been country’s economy is still dominated by the primary Agriculture, which is predominantly the domain of