The Chairman, Steering Committee, National Code for Corporate Governance (NCCG), Victor Odiase has stressed that if strong corporate governance standards was instituted in Nigeria, it would provide access to capital and prudent management of resources thereby fast-tracking economic development.

Odiase, who spoke at a recent forum, organized by the Financial Reporting Councils (FRC) in Lagos, also explained that good corporate governance attracts investors by assuring that the business environment is fair and transparent

He maintained that Fairness to minorities and stakeholders is very critical within a significantly concentrated ownership environment like Nigeria, noting that it assures that corporations can be held accountable for their actions or inactions.

“It ensures that investments are protected and contracts are enforceable within an effective legal, regulatory and judicial frame works.”

Odiase pointed out that majority of companies with substantial financial difficulties across the globe suffered from weak corporate governance structures.

“Research indicates that countries with poor investor protection measured by both the character of legal rules and the quality of law enforcement tend to have narrower capital markets and smaller number of listed firms.

“Countries with poorer investor protection are associated with higher concentration of ownership while firms in countries with better minority shareholder protection have higher equity valuation, since such governance protection also extends to corporate resources and decisions.”

According to him, effective corporate governance requires a proactive, focused state of mind on the part of everyone charged with the responsibility as well as other stakeholders who must be committed to business success through maintenance of highest standards of responsibility and ethics.

Odiase, who lamented that neither the quality of law nor its enforcement is adequate in Nigeria presently, maintained that attracting investment requires investors’ protection.