The Executive Secretary/Chief Executive Officer, Financial Reporting Council (FRC), Mr. Obazee Jim Osayande, has disclosed that the federal government’s decision to adopt a National Code of Corporate Governance (NCCG) is aimed at raising the standard of running entities’ in Nigeria.
Speaking at the Council’s Final Public hearing on the NCCG, at the Airport Hotel, Ikeja, in Lagos at the weekend, Osayande, said that the National Code of Corporate Governance is targeted at ensuring change in financial reportage.
He explained that at the FRC, the understanding of the change Mr. President is talking about is change of epic proportions, change of consciousness as well as a change of behavior.
According to him, the premise of this requires an understanding of the fact that the pain to be endured from the change must be experienced as lesser pain to that of continuing the present course, adding that this is the journey Nigerians must undertake now in its consideration of this National Code of Corporate Governance.
Therefore, he explained that the Code referred to as the National Code of Corporate Governance for the Private Sector in Nigeria 2016 is the outcome of a directive given to the Steering Committee on the National Code of Corporate
“The sectoral corporate governance codes identifiable at the commencement of the Steering Committee’s work were the Code of Corporate Governance for Banks in Nigeria Post-Consolidation 2006, Code of Corporate Governance for Licensed Pensions Operators 2008, and Code of Corporate Governance for Insurance Industry in Nigeria 2009.”
On the other hand, he said the Public Sector Governance Code in Nigeria 2015 is also an outcome of the directive given by the same Honorable Minister of Trade and Investments to the Steering Committee on Corporate Governance on 17th January 2013 to extend Corporate Governance to the Public Sector. This he said, is a commendable attempt by the Federal Government to correct the perceived defect in the “bottom-up” strategy used in introducing the concept of corporate governance into Nigeria in 2003, which limited the concept to listed and unlisted public companies and the Anglo-Saxon variant of board structure.
According to him, he said the need for corporate governance in Not-for-Profit Organisations, NFPOs, is hinged on good governance and orderly succession in view of the volume of funding they attract.