FRC to reintroduce corporate governance code for churches, mosques, NGOs

The Financial Reporting Council of Nigeria (FRC) says it will reintroduce the corporate governance code for not-for-profit organisations.

Speaking at a stakeholders and media roundtable meeting in Lagos on Wednesday, Rabiu Olowo, executive secretary of FRN, said the code will be unveiled in the first quarter of 2024.

He said that the council has also commenced the development of the public sector governance code, adding that the public sector is a catalyst for economic growth.

“We will establish and operationalise a new code for corporate governance for public institutions and not-for-profit sectors,” he said.

“The council commenced the development of the public sector governance code, which is very close to completion, and it will be my mandate that this is completed in the next three months.

“The public sector remains the catalyst of economic growth in Nigeria and other parts of the world. They have the institutions that underpin the fabric of society.

“That is why we believe that as much as we are driving the private sector to behave in a particular manner, we should also encourage and mandate the public institutions to do the same as well.

“Similarly, the council, seeing the need for proper guidance for not-for-profit organizations, embarked on developing a governance code for the not-for-profit sector.

“The code is at an advanced stage. We hope to unveil that in the next three months. We will have the honour to have President Bola Ahmed Tinubu to unveil the code of corporate governance for public institutions and the not-for-profit sector in Q1 2024.”

Speaking further, Olowo said the transformation agenda of the council will be based on four areas tagged “DOSE”, which are digitisation, operational excellence, stakeholder engagement, and enforcement.

PREVIOUS CONTROVERSY 

In 2016, the FRC, under the leadership of Jim Obazee, former CEO of the council, initiated a new corporate governance code for not-for-profit organisations.

The code was meant for religious, charitable, educational, professional and scientific, and social and recreational organisations.

The code stipulated a term of 20 years for heads of not-for-profit organisations, including churches and mosques.

The new code elicited angry reactions as some Nigerians claimed that the legal framework was targeted at leaders of major churches in the country.

The code forced Enoch Adeboye to step down as the overseer of the Redeemed Christian Church of God (RCCG).

Following the controversy, the code was suspended by the federal government.