EXCLUSIVE: Senator Gbenga Daniel in Code of Conduct Breach Storm Over Private Company Chairmanship

ABUJA – A presidential commendation has inadvertently thrust Senator Gbenga Daniel into a legal and ethical maelstrom, exposing a potential violation of Nigeria’s Code of Conduct for Public Officers stemming from his dual role as a serving senator and Chairman of a private company.

The controversy erupted from a statement issued Thursday by President Bola Tinubu, congratulating Kresta Laurel Limited on its 35th anniversary. In the message, delivered by his Special Adviser on Information and Strategy, Bayo Onanuga, the President explicitly praised Senator Daniel, a former Ogun State Governor, for his “leadership role” and identified him as the “Chairman of the Board of Directors.”

This public acknowledgement has triggered immediate scrutiny, as it places Senator Daniel, who represents Ogun East, in direct conflict with constitutional provisions designed to prevent conflicts of interest and ensure the undivided attention of public officials.

The Legal Minefield

The Fifth Schedule, Part 1, Section 2(b) of the Nigerian Constitution is unequivocal: “A public officer shall not, except where he is not employed on a full-time basis, engage or participate in the management or running of any private business, profession or trade.”

The Code of Conduct Bureau and Tribunal Act contains an identical prohibition. Serving senators are unequivocally full-time public officers, barred from holding such positions in private enterprises.

Legal experts who spoke to this newspaper warn that the role of a Board Chairman, while strategic, falls squarely within the definition of “participating in the management” of a company.

“A board chairmanship can amount to participation even if it is not daily, because chairs normally exercise governance, policy and appointment powers,” asserted Evans Ufeli, a Lagos-based lawyer. “The defence can only hold if the senator can prove that the chairmanship is purely titular and that he exercises no management or decision-making influence.”

The potential consequences are severe. A breach confirmed by the Code of Conduct Tribunal (CCT) can result in removal from office, disqualification from holding any public office for up to ten years, and the forfeiture of assets acquired through abuse of office.

Daniel’s Camp Mounts a Defence

When confronted, Senator Daniel’s media aide, Steve Oliyide, forcefully denied any wrongdoing.

He argued that the Senator is not involved in the day-to-day management of Kresta Laurel, a company he founded, pointing to the presence of a Managing Director and a team of executive directors.

“A company that has a managing director… with several executive directors then what are their duties?” Oliyide questioned rhetorically. He noted that another individual had previously served as chairman for a decade, proving the company’s operations are not dependent on Daniel’s direct involvement.

Legal Opinions Divided

However, other legal minds counter that the law casts a wide net intended to eliminate any potential for conflict.

Lekan Oladapo, a former Nigerian Bar Association secretary, dismissed the defence, stating, “The intent of the law is to checkmate public officers from abusing their office and avoiding conflicts of interest. The fact that the MD handles daily operations does not insulate a chairman who performs oversight functions.”

He emphasised that the CCT’s sanctions are designed to be punitive and deterrent.

A contrasting view was offered by lawyer Olukoya Ogungbeje, who suggested that a board chairmanship alone may not constitute a breach unless a direct conflict of interest is proven.

“If the company where the senator sits as board chairman tenders for contracts with the Senate or benefits from public funds, that would clearly breach the Code,” Ogungbeje stated.

Notably, Nigeria’s appellate courts have yet to set a clear precedent on this specific issue, leaving a grey area that Senator Daniel’s situation may now force into the spotlight.

The presidential praise, intended to celebrate a business milestone, has now placed Senator Daniel’s corporate portfolio under an unforgiving legal microscope, raising critical questions about the boundaries between public service and private enterprise at the highest levels of government.

This report was first published by The Premium Times Newspaper