The Financial Reporting Council of Nigeria (FRC) says all companies in the country must adhere to the new version of the code of corporate governance.
Daniel Asapokhai, chief executive officer, FRC, made the disclosure at the first public hearing for the exposure draft of the Nigerian Code of Corporate Governance 2018 (NCCG 2018), in Owerri.
According to him, the NCCG 2018 has adopted an ‘apply and explain’ principle, which requires companies to apply the requirements of the code and to explain the process for doing so.
“The Nigerian Code of Corporate Governance 2018 shall apply to all public companies; whether listed or not, all private companies that are holding companies of public companies and other regulated entities, concessioned and privatised companies, and regulated private companies,” he said.
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“The decision to adopt the ‘Apply and Explain’ approach was made after careful considerations of several factors including the Nigerian legal system, Nigerian culture and history, government policies, state of the Nigerian economy, global economic and political climate, and levels of capital inflow of investment coming into the country.”
The FRC boss said the new code replaced the suspended 2016 Code of Corporate Governance, following its revision by a 15-man technical committee, extensive consultations and engagement with numerous stakeholders and regulators.
Asapokhai said if adhered to, the NCCG 2018 will “promote ease of doing business, attract local and foreign investments and enhance the integrity of the Nigerian capital market, by entrenching a culture of disclosure, transparency and accountability… and raise public awareness of good corporate governance practices”.
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The public hearing on the exposure draft of the NCCG 2018 will also hold in other cities including Port Harcourt, Jos, Gombe, FCT Abuja, Kano, and Lagos.
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