The Securities and Exchange Commission said on Wednesday it would soon launch its corporate governance scorecard for quoted companies in the country.
The Acting Director General of the Commission, Mounir Gwarzo, who disclosed this when members of the governing board of the Performance, Earnings And Returns Leadership Awards Nigeria visited him in his office in Abuja, said that SEC would love to work with it on issues of corporate governance awards.
The collaboration between the Commission and the Pearl Awards, the DG noted, would encourage high performance among companies doing business in the country.
The DG, therefore, urged the organization to consider including good corporate governance as one of its criteria for reward to quoted companies in Nigeria.
He said it was in a bid to encourage companies operating in Nigeria’s capital market do well that SEC was planning to launch its corporate governance scorecard.
The scorecard, Mr. Gwarzo explained, would ensure compliance of these companies with the tenets of good corporate governance, which would in turn translate into better returns and better service delivery to the people, among other benefits.
“One issue that is very critical in this market is the issue of Corporate Governance,” the DG said. “I appeal that in your selection process, emphasis must be given to companies that are complying with the dictate of good corporate governance.”
SEC, he pointed out, was the only regulator that has developed its corporate governance scorecard, which has already been approved by the board and awaiting official launching soon.
The acting DG also enjoined the Pearl Awards team to look at issues of corporate social responsibility by quoted companies, which he said, was very important in business operations, so that communities would see companies giving back to the people in their areas of business.
The President of Pearl awards, Tayo Orekoya, had commended the SEC management for its efforts to return the market to the path of sustainable growth and development, noting the remarkable achievements of the new management within short period to stabilize the market.
Mr. Orekoya, who noted the high investors’ expectations, said many were earnestly looking forward to continuous pragmatic positive changes in the stock market under the new leadership of the Commission.
“We are convinced that with your experience and exposure, both as operator and regulator, the Nigerian capital market would be steadily stabilized and witness remarkable growth,” he said.
He explained that the Pearl Awards basically identifies and rewards actual performance of companies quoted on the stock exchange.
Besides, he said the awards process was based on verifiable facts and figures assessed utilizing credible and globally acceptable parameters for data evaluation.
The President disclosed that since inception, over 75 quoted companies have been rewarded in various categories of the awards.