‘To achieve $1trn economy’ — FRC, MOFI unveil code of corporate governance for public sector

The Financial Reporting Council (FRC) has unveiled the exposure draft of the code of corporate governance for the public sector.

A corporate governance code provides rules on how board members and directors should approach governance in their respective organisations.

The council, alongside the ministry of finance incorporated (MOFI) and the Institute of Directors, Centre for Corporate Governance (IoDCCG), unveiled the draft on Monday at a press briefing on the upcoming national corporate governance summit.

The summit, expected to be held later this month, is themed, ‘Institutionalising Corporate Governance for National Transformation: The Imperative for Public Private Sector Collaboration’.

The FRC said the summit would highlight the significance of fostering partnerships between government entities and private businesses to drive sustainable development, enhance service delivery and promote economic growth.

Urum Eke, the convener of the summit and chairman of IoDCCG, said the importance of imbibing corporate governance in both public and private institutions as a catalyst to achieving the $1 trillion economy cannot be overemphasised.

“For us, we are looking at an issue of $1 trillion and one of those things that will enable it is the right corporate governance,” Eke said.

“As we begin to entrench the right corporate governance, then we’re going to enhance shareholder value because it has been proven, that has a direct positive connotation, between corporate governance and corporate performance.

“If you look at corporate failures, whereas on account of technical insolvency, you have to put corporate governance at the centre to understand why the business crashed.”

On his part, Rabiu Olowo, FRC’s chief executive officer, said the theme of the summit is apt because of the importance of the public sector.

“It is high time that corporate governance also looks into the public space,” Olowo said.

“We have enjoyed the success of corporate governance in the private sector and that’s why the summit will expose to the public the work that the financial reporting council is doing to come up with a code of corporate governance for public institutions.

“The summit is designed to be a distinguished and impressive gathering of minds examining changes, trends, challenges and best practices in corporate governance in Nigeria with a focus on the impact on national transformation.

“It serves as a premier platform that assembles practitioners, industry leaders, experts, and professionals to discuss critical issues that shape the governance landscape in public and private organizations while offering unmatched networking opportunities that promote knowledge exchange, brand recognition and collaboration.”

Olowo also said the summit strives to incorporate an ethical-based governance system in both private and public sectors of the Nigerian economy, “to determine, set and enforce entry standards for people, indeed, in organisations and public institutions”.