Financial reporting council to unveil corporate governance code for private sector

As part of efforts to improve Nigeria’s business and investment terrain, the Financial Reporting Council of Nigeria, FRC, on Tuesday, said that two moderating codes of corporate governance for the organised private sector, and Not- for-Profit organisation, would be operational in the first quarter of 2016.

Jim Obazee, Executive Secretary and Chief Executive Officer of FRC, said the introduction of the codes would be after harmonisation of the existing scattered operational industry codes of corporate governance.

Mr. Obazee said at the 12th annual corporate financial reporting summit, in Lagos, that the code for public sector would be delayed because of the need for the code to exhaustively pass through the Federal Government Executive Council.

The harmonisation of the existing code of corporate governance, he said, followed the need for it to serve as a catalyst for enhanced and credible economic activities in Nigeria.

He explained that the FRC’s commitment towards a national code of corporate governance followed the code’s potency in stimulating sound financial systems of internal control and protection of investments and asset.

Mr. Obazee also said that their drive towards having a national code of corporate governance revolves around mitigating corporate failures.

The FRC executive secretary said the beauty of an emerging national code of corporate governance is the migration of the code from persuasive to enforcement and regulation.

“For us in FRC we believe that only enforcement and regulation of the national code of corporate governance will lead to financial stability and sustained wealth creation.

“We also can attest that the persuasive nature of existing codes of corporate governance accounted for the obstacles in implementing sustainable good corporate governance,” Mr. Obazee said.

Before the FRC’s current effort to establish a national code of corporate governance, numerous industry specific codes were issued by regulators.

The regulators with subsisting code of corporate governance include the Central Bank of Nigeria, Securities and Exchange Commission, National Pension Commission, Nigerian Deposit Insurance Commission, National Insurance Commission and Nigerian Communication Commission.