$1trn Economy: Public Sector Firms Get Corporate Governance Code

As part of efforts to achieve the $1 trillion economy for Nigeria, the Financial Reporting Council (FRC), the Ministry of Finance Incorporated (MOFI) and the Institute of Directors Center for Corporate Governance has issued the exposure draft of the code of corporate governance guidelines for the public sector.

This was stated by the executive secretary, and chief executive of the FRC, Dr Rabiu Olowo and the chief executive of MOFI, Dr Armstrong Takang, at a press briefing on the upcoming National Corporate Governance Summit.

The summit to be held later this month and themed “Institutionalising Corporate Governance for National Transformation: The Imperative for Public Private Sector Collaboration” will discuss the significance of fostering partnerships between government entities and private businesses to drive sustainable development, enhance service delivery and promote economic growth.

Speaking at the press briefing, the convener of the summit, Institute of Directors Center for Corporate Governance, U.K Eke, noted that 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.

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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.

The FRC chief executive, Dr Rabiu Olowo commenting on the theme of the summit said it is apt because of the importance of the public sector. “It is high time that corporate governance also looks into  the public space.  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 National Corporate Governance 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 the focus on the impact on national transformation.

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

“The major outcomes of the 2022 summit include the need to improve and deepen corporate governance principles and practices in every  organisation in Nigeria be it public or private  and practices in every organisation in Nigeria. I believe that this particular outcome is not unconnected to the fact that today the FRC has exposed the code of corporate governance for the not for corporate sector and also for public institutions. So it means that the outcomes of the previous summit are being taken seriously.

“It also included under publication of a corporate governance compliance checklist by all Nigerian companies detailing any gaps and timelines to comply. It also 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.”