The Financial Reporting Council (FRC), the Ministry of Finance Incorporated (MOFI), and the Institute of Directors Center for Corporate Governance (IDCCG) have issued new Code of Corporate Governance guidelines for the public sector in Nigeria.
At a press briefing in Abuja, they said the move is part of efforts to achieve a $1 trillion economy for Nigeria.
The Executive Secretary of the FRC, Dr. Rabiu Olowo, and the Chief Executive of MOFI, Dr. Armstrong Takang, also hinted at the upcoming National Corporate Governance Summit.
MOFI and FRC explained that the summit will be held later this month with the theme, “Institutionalizing Corporate Governance for National Transformation: The Imperative for Public-Private Sector Collaboration.”
They said discussions will focus on the significance of fostering partnerships between government entities and private businesses to drive sustainable development, enhance service delivery, and promote economic growth.
Also speaking at the press briefing, U.K Eke, the convener of the summit from the Institute of Directors Center for Corporate Governance, noted that the importance of incorporating corporate governance in both public and private institutions as a catalyst to achieving a $1 trillion economy cannot be overemphasized.
“For us, we are looking at the issue of a $1 trillion economy, and one of the things that will enable it is the right corporate governance.
As we begin to entrench the right corporate governance, we will enhance shareholder value because it has been proven that there is a direct positive correlation between corporate governance and corporate performance.
“If you look at corporate failures, while technical insolvency is a factor, corporate governance is often central to understanding why a business failed,” he stated.
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Speaking further on the summit, the FRC Chief Executive, Dr. Rabiu Olowo, noted that the theme is apt due to the importance of the public sector.
According to him, “It is high time that corporate governance also looks into the public space. We have enjoyed the success of corporate governance in the private sector, and that’s why the summit will expose the public to the work that the Financial Reporting Council is doing to develop a code of corporate governance for public institutions.
“The National Corporate Governance Summit is designed to be a distinguished and impressive gathering of minds examining changes, trends, challenges, and best practices in corporate governance in Nigeria, with a focus on the impact on national transformation.
“It serves as a premier platform that assembles practitioners, industry leaders, experts, and professionals to discuss critical issues that shape the governance landscape in public and private organizations while offering unmatched networking opportunities that promote knowledge exchange, brand recognition, and collaboration.
“The major outcomes of the 2022 summit included the need to improve and deepen corporate governance principles and practices in every organization in Nigeria, whether public or private.
I believe that this particular outcome is not unconnected to the fact that today the FRC has released the code of corporate governance for the corporate sector and also for public institutions. This shows that the outcomes of the previous summit are being taken seriously.
“It also included the publication of a corporate governance compliance checklist by all Nigerian companies, detailing any gaps and timelines to comply,” he stated.