Nigerian public sector boards designed for failure, analysis argues

Many public sector boards in Nigeria are failing not due to chance, but because they were intentionally designed to underperform. This core principle, that "every institution is designed to achieve the result it does," applies universally, meaning a failing parastatal or a drifting development bank was structured and operated in a way that makes failure predictable. This is the fundamental concept of organization design, and it holds true for companies, government ministries, civil society bodies, and nations – and especially for boards.

The author contends that fixing Nigeria's public sector boards is a powerful reform lever that remains largely untapped. The argument deepens by stating that most public sector boards are underperforming by design. Their assembly, structure, briefing, and operational methods make underperformance the likely outcome. To achieve different results, a fundamental change in the design of these boards is necessary; there is no alternative.

To illustrate how performing boards function, the article outlines seven transformational disciplines, adapted from running government like a business: Purpose, Strategy, Structure, Roles, People, Culture, and Systems. These disciplines, when applied rigorously, can shift government focus from politics to performance. They are particularly critical at the board level, as the board is the highest decision-making body within any public institution.

Applying these disciplines to the boardroom, the first discipline, Purpose, is examined. A performing board clearly understands its reason for existence beyond legal mandates. It articulates its specific role in ensuring the institution delivers what the country needs. However, most Nigerian public sector boards struggle to define this purpose clearly, often defaulting to descriptions of the institution itself or vague notions of oversight. This lack of a clearly articulated board purpose leaves it without an anchor to measure its effectiveness.