Olowo: SMEs’ Corporate Governance Code Will Aid Business Survival in Hostile Environment

*Says guidelines for non-for-profit, public entities underway, vows partnership with directors

James Emejo in Abuja

Executive Secretary/Chief Executive, Financial Reporting Council (FRC) of Nigeria, Dr. Rabiu Olowo, yesterday said the recently unveiled SMEs Corporate Governance Guidelines would help to preserve small businesses from collapsing amid a difficult economic operating environment.
Speaking when he received the leadership of the Chartered Institute of Directors Nigeria (CIoD Nigeria), led by its President/Chairman, Governing Council, Alhaji Tijjani Borodo, on a courtesy visit to the FRC in Abuja, Olowo said the SMEs’ sub-sector were not given enough support as they would “need to survive in this difficult economic environment”.

He said study had shown that small businesses have been sidelined even though they remained viable tools for economic development adding that the guidelines seek to correct identified lapses.
He said, “We believe the guidelines would provide the information that they need to keep them in business for a long time.”
The FRC boss also said the council was working on similar codes for the public sector and Non-for-Profit entities.

He said, “We are working currently to launch a similar code for public institutions. We believe that public institutions are pivotal to the way governance is run – it affects the quality of our laws and that these institutions underpin the society but sadly, there is no known code/framework that is nationally accepted as a way of transacting and doing business in that particularly sector.

“We are currently doing advocacy, approve of concept and presentations so that people would understand what we are doing – so this is a very important phase for you to join us to see that this becomes a success.
“Similarly, we are also trying to push for a new code of corporate governance for the non-for-profit sector. We thought that this is absolutely important as this sector has a lot of national and international dimension and they are absolute important in a way that we coordinate ourselves as a society.”

While assuing on partnership with the institute, he said, “FRC finds alignment between our core values and those of the institute especially in the areas of corporate governance, developmental frameworks, regulatory assurance, setting standards for directors and partnership and collaboration. There’s need for us to come together better than ever to meet our shared beliefs and mandates in this core areas.”
“Most of the businesses we run in the FRC has a lot to do with the values that you drive as an institute and so I call on even stronger collaboration FRC and your institute.

“And to go into the very reasons you are here today; I can tell you that in the true spirit of partnership and collaboration, we are looking for stronger partnerships in the institutions we currently work with such as yourself.”
Earlier, Borodo had requested that the FRC nominated a fit and proper representative to the institute.
However, Olowo, while welcoming the gesture for partnership had suggested membership status that won’t conflict with the council’s core functions and mandate.