SMEs’ corporate governance code will preserve small business – FRC

Executive Secretary/Chief Executive, Financial Reporting Council (FRC) of Nigeria, Dr. Rabiu Olowo, yesterday said the recently unveiled SMEs Corporate Governance Guidelines would help to preserve small businesses from collapsing amid a difficult economic operating environment.

Speaking when he received the leadership of the Chartered Institute of Directors Nigeria (CIoD Nigeria), led by its President/Chairman, Governing Council, Alhaji Tijjani Borodo, on a courtesy visit to the FRC in Abuja, Olowo said the SMEs’ sub-sector were not given enough support as they would “need to survive in this difficult economic environment”.

He said study had shown that small businesses have been sidelined even though they remained viable tools for economic development adding that the guidelines seek to correct identified lapses.

He said, “We believe the guidelines would provide the information that they need to keep them in business for a long time.”

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The FRC boss also said the council was working on similar codes for the public sector and Non-for-Profit entities.

He said: “We are currently doing advocacy, approval of concept and presentations so that people would understand what we are doing – so this is a very important phase for you to join us to see that this becomes a success.

“Similarly, we are also trying to push for a new code of corporate governance for the non-for-profit sector. We thought that this is absolutely important as this sector has a lot of national and international dimensions and they are absolutely important in a way that we coordinate ourselves as a society.”

While assuring on partnership with the institute, he said, “FRC finds alignment between our core values and those of the institute especially in the areas of corporate governance, developmental frameworks, regulatory assurance, setting standards for directors and partnership and collaboration. There’s a need for us to come together better than ever to meet our shared beliefs and mandates in these core areas.”

Earlier, Borodo had requested that the FRC nominate a fit and proper representative to the institute.

However, Olowo, while welcoming the gesture for partnership had suggested membership status that won’t conflict with the council’s core functions and mandate.