2018 Nigerian Code of Corporate Governance: Sectorial Codes to Serve as Guidelines - FRC

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Wednesday, June 13, 2018 6.30PM / Proshare WebTV 

The Financial Reporting Council of Nigeria says under the proposed 2018 Nigerian Corporate Governance Code for the private sector, the existing sectoral codes across the country will serve as guidelines from the regulators. 

This was disclosed by the Executive Secretary and CEO of the FRC Mr Daniel Asapokhai at a press briefing on the Exposure Draft of the 2018 Nigerian Code of Corporate Governance in Lagos. 

Speaking further he said “All sectoral codes would become guidelines and a sectoral regulator could issue guidelines that set out corporate governance practices consistent with the principles in this code, and enforce compliance with such guidelines with appropriate sanctions as may be prescribed by them”. 

Mr Asapokhai shared that the 60-page document Code of Corporate Governance contains 28 principles and 230 practices guiding the operations of businesses in the country. 

According to him “It is our belief that this code will promote ease of doing business, attract local & foreign investments and enhance the integrity of the Nigerian market by entrenching a culture of disclosure, transparency and accountability”. 

On the essence of the code, the Executive Secretary/CEO of FRC Nigeria Mr Asapokhai asserted that it was designed to institutionalise the highest standards of corporate governance consistent with best practices, and with the aim of facilitating trade and investment, rebuilding public trust and confidence in the Nigerian economy. 

He stressed that the practices recommended in the code are flexible & scalable and can be applied by all organizations regardless of their size. The FRC CEO called on the companies governed by the code to take advantage of  its flexibility. 

In October 17, 2016 the Financial Reporting Council, in line with section 50 of the FRC Act, 2011, issued a two-in-one National Code of Corporate Governance for the Private Sector and Not-For-Profit organisations, and in October 28, 2016, the Private Sector and Not-for-Profit organisations codes were suspended by the Federal Government. 

A fifteen-man technical committee was constituted by the board of the FRC Nigeria on January 18, 2018 with Mr M.K. Ahmed as Chairman, comprising representatives from regulatory agencies, industry professionals and experienced individuals with corporate governance expertise. 

The committee was responsible for reviewing the suspended National Code of Corporate Governance of 2016 and came up with the proposed 2018 code. 

To achieve widespread acceptability of the exposure draft of the 2018 Corporate Governance Code, the FRC is planning a nationwide engagement with stakeholders across the six geopolitical zones of the nation.

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