Business

FRC to sanction firms over corporate governance code violation

L-R- Alhaji Tijjani Borodo, FCIoD President/Chairman of Governing Council, IoD, Mrs. Ifueko Omoigui Okauru, MFR, Founder/Managing Partner, Compliance Professionals Plc, Mr. UK Eke, MFR, Chairman, Board of Governors, IoDCCG, Dr. Rabiu Olowo, Co-Chair of the Summit and Executive Secretary/CEO, Financial Reporting Council of Nigeria, Mrs Funmilayo Ekundayo, FCIS, President, Institute of Chartered Secretaries and Administrators (ICSAN) and Dr Amstrong Takang, Co-Chair of the Summit and Chief Executive Officer, Ministry of Finance Incorporated (Mofi).

The Financial Reporting Council(FRC) has said it will commence sanctioning private and public entities that violate the code of corporate governance in the country.

Speaking in Lagos, the chief executive of the FRC, Dr Rabiu Olowo said the council as a regulator is working to ensure that corporate governance is deepened in organisations.

“When I came in last year August, the first company we sanctioned was a government entity, sending the signal to the private sector that we are coming because it doesn’t happen.

“So we are moving away from the hard issues when it comes to corporate governance such as do you have a board. We are going to the soft issues such as diversity on board, commitment to value executive compensation, ESG. And that is why we are recruiting independent corporate governance reviewers.

“We are looking for experts both in public and private to join our monitoring and evaluation team so that we can deepen the level and scope of what we do” he stated.

On his part, the chairman of the Institute of Directors Centre for Corporate Governance (IoDCCG), Dr. UK Eke said Nigeria can reach the $1 trillion economy target if institutions abide by the right structures and code.

He reaffirmed that building Nigeria into a N1 trillion economy is possible if things are done right, stressing the need to bring both the private and public sector into the corporate governance ecosystem.

“It is not just about the public sector, or the private sector, but making it all inclusive so that together we are focused on each in our own corner trying to create the right governance structures that will make this economy truly transformed.

“We believe very strongly that we can hit the $1 trillion economy in about five years. All we need is to build the right structure.

“The federal government, through the Ministry of Finance Incorporated have assets under management that is over $40 trillion we are told, Imagine what that means.

“Now, this is without the right governance structures. Think about corporatizing the public entities. Think about corporatising the railway, the airport, the seaports, the highways, and then creating the right governance structure. Then we can easily exceed the benchmark $1 trillion economy” Eke stated.