Vice President Professor Yemi Osinbajo has unveiled the Nigerian Code of Corporate Governance 2018 meant to enthrone higher standards of corporate governance and ethical practices in the private sector.
The code, which was previously ready for issuance in 2016, was suspended following outcry it generated with regards to not-for-profit organisations.
The Federal Government later set up a technical committee headed by Alhaji Muhammad Kabiru Ahmad to review the code and the work of the committee translated into the latest code unveiled by the vice president, yesterday, in Abuja.
The Nigerian Code of Corporate Governance 2018 excluded the public sector and not-for profit organisations but Ahmed said the code could be applied by all enterprises in the country. Professor Osinbajo said the implementation of the code would promote corporate success and economic growth, lower cost of capital and help to minimise wastage, corruption and mismanagement.
“With today’s event, Nigeria is taking a big stride in our efforts to be a preferred investment destination,” he said.
The Minister of Industry, Trade and Investment, Dr. Okechukwu Enelamah, said the global financial crisis exposed significant shortcomings in the corporate governance of companies and that led to failures in risk management, scandals and frauds.
“Corporate governance defines the quality of our markets. Good governance instills investor confidence and instigates rapid growth in corporate markets,” Enelamah said.
The Executive Secretary of Financial Reporting Council (FRC), Mr. Daniel Asapokhai, said the code outlined what good governance should be and compliance would be attached as one of the requirements for accessing some government services, including government procurements.