FRC to unveil draft national governance code in March

The Financial Reporting Council (FRC) of Nigeria said it has received a mandate to unveil the first of three phases of the National Code of Corporate Governance by the end of the first quarter of 2018.

The National Code of Corporate Governance includes the large and formal corporates; the public sector; and Non Governmental Organisations/Not-For-Profit Organisations.

Recall that the said document, which was overseen by former Executive Secretary of FRC, Jim Obazee, was suspended, as the content turned controversial, leading to the sack of notable religious heads and threatening some chief executives.

But last week, a new technical committee, made up of eminent Nigerians was inaugurated, with the task of reducing to the barest minimum, but comprehensive, the assessed contradictions, through sustained engagements of stakeholders and ensure ease of doing business.

The Executive Secretary of FRC, Daniel Asakpokhai, said the inauguration of the committee kicks off the process of re-introducing of the document, assuring that the diversity of the new committee is a commitment to working with all stakeholders on the journey to a new national code.

“I am sure you would do a great job for our country and help us address the procedural and substantive concerns that culminated in the suspension of the earlier released code,” he said.

The Chairman of FRC, Adedotun Sulaiman, said the choice of starting from the large and formal corporates rather than the controversial issue that led to the suspension was economic and ease of doing business, as both cannot be compared in terms of contributions to the economy.

He said that the new committee would define in clear terms superiority among sectoral and national codes, as the process would reach out to experienced stakeholders, particularly, those that helped in drafting sectoral codes to harmonise issues.

Sulaiman explained that the new board has been working for the past few months on assumptions of duties, taking stock and developing new strategic directions and plan for FRC.

The plans being approved in December 2017, he said, clarifies and resets a new direction and operating style for FRC and articulates the areas of focus and priority for the council over the next three to five years.

“While the absence of a National Code of Corporate Governance provided the vacuum, which the industry regulators sought to fill within their respective spheres, we will use the introduction of a revised national code to harmonise and streamline the various sectoral codes that currently exist in the country.

The Chairman of the committee and former Managing Director of National Pension, Muhammed Ahmad, corporate organisations are built on the highest standard of accountability and transparency.

While assuring that the committee would be diligent as a response to confidence reposed on them, he affirmed that the controversies dogging the previous document would be resolved for the good of the economy.