A Theoretical Framework for Business Diagnostics and Governance in Nigeria: Navigating Challenges and Prospects (2000–2026)

Persistent governance failures and diagnostic inadequacies have constrained sustainable enterprise development in Nigeria, necessitating a robust theoretical synthesis to address systemic challenges. This article constructs an integrated theoretical framework for business diagnostics and governance, aiming to delineate the core structural and behavioural components influencing organisational health and to model their interrelationships within the Nigerian context. The framework is developed through a critical synthesis of established theories from agency, stewardship, institutional, and behavioural finance literatures, contextualised through analysis of documented sectoral trends and governance pathologies. The framework posits that a dominant theme of short-termism, driven by weak institutional enforcement and socio-cultural norms, undermines diagnostic rigour; it specifically models how cognitive biases in ownership structures distort risk assessment. The proposed framework provides a coherent lens for analysing business failures and governance deficits, highlighting the interdependence of diagnostic processes and governance mechanisms in fostering resilience. Future research should apply the framework empirically to specific sectors, such as agribusiness or fintech, and policymakers should integrate its components into national corporate governance codes. theoretical framework, corporate governance, business diagnostics, behavioural finance, Nigeria This article's novel contribution is the integration of behavioural finance principles with traditional governance models to create a context-specific diagnostic system for analysing Nigerian business pathologies.