The executive secretary of Financial Reporting Council, FRC, Daniel Asapokhai, has said that the new Nigerian Code of Corporate Governance that is being finalized by the council will ease access to capital by organizations.
Speaking at a public hearing on the exposure draft of the Nigerian Code of Corporate Governance 2018 for Federal Capital Territory in Abuja at the weekend, Asapokhai said organizations that practice good corporate governance are at better positions to attract lenders, who are looking for organizations that are properly governed.
The public hearing which commenced in Owerri a couple of weeks ago has been held previously in Port Harcourt and Gombe.
He said: “The Public hearings have really been impactful. It is our belief that this Code 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. In addition, this Code will raise public awareness of good corporate governance practices.”
Asapokhai revealed that the Nigerian Code of Corporate Governance has adopted the ‘Apply and Explain’ principle, which requires companies to apply the requirements of the Code and to explain how they did so.
He also said that 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 privatized companies, and regulated private companies.
In his presentation, he said the new code has 28 principles, 7 parts, and 230 practices.
The federal government suspended the former code of corporate governance and constituted a technical committee lead by Alhaji MK Ahmad to produce a revised national code. The committee has been working on the new code since January.
Speaking with COLOSSUS GISTS, Ahmad said the code is about flexibility as it contains a minimum standard for corporate governance regardless of the size of the organization.
Head, Directorate of Corporate Governance, Financial Reporting Council (FRC) of Nigeria, Mr. Nelson Anumaka said that with the national code, other codes will be within the ambit of minimum requirements enshrine in it.
In a chat with COLOSSUS GISTS at the event, Professor Uche Nwaleke of Nasarawa State University said the code unifies all the other codes and provides a benchmark. According to him, the code will enhance ease of doing business as investors are interested in organizations that have strong corporate governance.
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