A financial expert, Dr. Bala Mohammadu Abubakar, has identified lack of corporate governance and fiscal responsibility in both private and public sectors of Nigeria economy as the major factor militating against business activities in Nigeria.
Dr. Abubakar, Chairman and Chief Executive Officer (CEO), of Bamas royal consulting Ltd, Abuja, also identified conflict and poor relationship between Boards and company executives in most cases as a bottleneck towards smooth performance of most establishments.
He made these observations while making his contributions at the one day public hearing/sensitisation on Nigeria Code of Corporate Governance organized by the Financial Reporting Council of Nigeria (FRCN) for the North east zone held at Meidugu hotel in Gombe on Tuesday.
Dr. Abubakar who is also the financial consultant to the 19 northern states, expressed regrets that lack of effective tool guiding corporate governance in private and public businesses and institutions over the years has given rise to a situation where certain individuals in leadership positions have become powerful and even richer than the institutions they are heading.
The financial Don who said it will be difficult for any country to attract domestic and private investment without a regulatory document such as the code, said it is important for organizations in Nigeria to adopt the new code , because most companies around the world facing financial challenges suffered as a result of weak corporate governance regulations.
“The need for this code is long overdue, however it is better late than never, and there is the need for every Nigerian to embrace the code because we cannot develop our private and public enterprises, without complying with a standard code.”
Dr. Abubakar who noted that, Nigeria is good in designing excellent policies but without implementation, explained that for the the document to be effective and embrace by Nigerians, FRC most design effective mechanism towards compliance.
“I wish to draw the attention of FRC to go all out in mobilising, sensitising and educating relevant stakeholders to find the process, for the acceptance and adoption of the new code easier”.
In his suggestions he said, “it is very important for FRCN, to go beyond the regional hearing by visiting states for town hall meetings to better equip the private and public sectors on how to implement the content and provision of the code.”
He also suggested that the document be translated into the 3 major Nigeria languages of Yoruba, Hausa and Igbo for better assimilation.
Speaking earlier the Executive Secretary/Chief Executive Officer of FRC, expressed confidence that the code would 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.
“This has spurred various governments to carry out a review of their countries’ governance practices and adopt new legislation to regulate corporate conduct and behaviours.”
He said the Nigerian Code of Corporate Governance 2018 was developed based on comprehensive review of the suspended 2016 Corporate Governance Code, by a 15-man technical committee with the attendant consultative engagements with a wide range of stakeholders and regulators.