Corporate governance for NGOs not for tax purposes, says FRC

The Financial Reporting Council (FRC) of Nigeria has affirmed that the inclusion of not-for-profit Non Governmental Organisations(NGOs) in the National Code of Corporate Governance (NCCG) in the country is not for taxation purposes.

Speaking at the public hearing in Lagos on the NCCG for NGOs over the weekend, the Chairman of FRC, Hajiya Maryam Ladi Ibrahim said their inclusion was to ensure better management and stronger corporate governance structures.

Ibrahim explained that it had become imperative for Nigeria to join the league of nations to adopt the code of corporate governance, considering that majority of entities with financial difficulties across the world suffer from weak corporate governance structures.

She stressed that the adoption of the NCCG by Nigeria has become more compelling given the stand of the present administration against all forms of financial recklessness and lack of accountability.

According to her, the concept of corporate governance was essential to the well-being of organizations and their stakeholders, adding that effective corporate governance requires proactive and focused state of mind on the part everyone charged with responsibility as well as other stakeholders who must be committed business success through maintenance of highest standard of responsibility and ethics.

Her words: “The inclusion of not-for-profit organisations in the unified National Code of Corporate Governance is to ensure that ultimate power resides with the beneficiaries or general assembly or members’, pointing out that the code sets out vivid governance structure and directs how to deal with founders and elders to enable the organization move on.

“The adoption of NCCG by not-for-profit organizations has become important because of the need to distinguish and identify ownership of assets, the need to recognize all governance structures, functions, offices and their limitations, and to ensure perpetual succession as envisaged by original founders.”

The Chief Executive Officer of FRC, Jim Obazee said the essence of the public hearing was to hear from the stakeholders, so as to have an all embracing code of corporate governance in Nigeria , and in the end, the stakeholders as well as the country would be celebrated.

He further stated that the NCCG would bring Nigeria in conformity with other parts of the world, while noting that countries like India and China are attracting investments because of excellent corporate governance structure put in place.