FRC Holds Hearing on Code of Governance to Guide Private, Public Firms

By Ibrahim Shuaibu in Kano

The Financial Reporting Council (FRC) of Nigeria on Tuesday in Kano organised a public hearing on the Nigerian Code of Corporate Governance that would guide both public and private sectors on good cooperate governance which would ease and encourage investors and enhance the integrity of the Nigerian capital market, by entrenching a culture of disclosure, transparency and accountability.

Speaking on Tuesday during the public hearing/sensitisation on the Nigerian Code of Cooperate Governance, the Executive Secretary/Chief Executive Officer (FRC), Mr Daniel Asapokhai, said that the Nigerian Cooperate Governance has adopted the “Apply and Explain” principle which entitles companies to apply the requirements of the code and explain how they did so.

This, he explained, was adopted after a careful consideration of several factors such as the legal system, culture, history, government policies, economic and political climate of the country.

Asopokhai said: “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 cooperate governance practices.

“The Nigerian Code of Cooperate Governance 2018 was developed based on a comprehensive review of the suspended 2016 Code of Cooperate Governance by a 15-man technical committee and extensive consultative and collaborative engagement with a wide range of stakeholders and the regulators.

“The 2018 Code shall apply to all public companies whether listed or not, all private companies that are holding companies of public companies and other regulated entities, concession and privatised companies and regulated private companies.”

The executive secretary said that the public hearing would take place in all the geo-political zones of the country including the Federal Capital Territory (FCT) where it is expected to be successful and impactful for private and public organisations, “as this is the first time FRC is coming out with an accepted cooperate balanced code”.

The Financial Reporting Council of Nigeria is a federal government agency established by the Financial Reporting Council of Nigeria Act No. 6, 2011 under the supervision of the Federal Ministry of Industry, Trade and Investment.