Corporate governance code: Oil marketers pledge compliance

MAJOR oil marketers have pledged compliance to the corporate governance code. The corporate governance code was designed to promote Health Safety Environment & Quality (HESQ).

Speaking at the 2019 CEOs strategy retreat, the Chief Executive Officer (CEO) of Major Oil Marketers Association of Nigeria (MOMAN), Mr Clement Isong, expressed the view that good corporate governance practices lie at the core of good business performance impacting all stakeholders including shareholders, employees, service providers, transporters, dealers and ultimately, the Nigerian customer.

He reminded participants that the image of the downstream sector of the oil & gas industry had, over the years, suffered considerable damage as a result of some underhand practices, particularly the penchant of some petrol station dealers for cheating at the pumps, as well as the unwillingness of some oil product transporters to present fit and proper vehicles and trained drivers for the movement of hazardous cargo such as petroleum products.

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He also informed participants of the CEOs’ desire for a serious and sustainable relaunch of corporate governance mechanisms so as to adequately tackle challenges in the industry and boost stakeholder returns.

Also speaking at the event, the chairman of Junios Consulting, Mr Osifo Segun Akpata, described the speedy adoption of better governance practices in the industry as an imperative for progress. He welcomed the launch of the new code and was of the opinion that if compliance with the code’s provisions by companies operating in Nigeria is rigorously enforced by the relevant authorities, the corporate space in the country will, in a few years, become very different.

Beyond improving productivity and reducing reputational risks, he believes well run organisations are an irresistible attraction for foreign and domestic capital.

Participants were exposed to the provisions of the new code and the practical measures to be taken by companies to ensure compliance. The consultant emphasized that any resources expended by an organisation in stepping up its corporate governance practices were an investment in the growth and profitability of the organisation.

Participants were of the unanimous view that good corporate governance practices should be fully embraced at the level of boards who would drive the message downwards in the organization.

At the close of the event, participants committed themselves to working for the entrenchment of the code’s principles in their respective companies. It was accepted that further training sessions would be held at company level to identify and close out gaps in compliance.