Code of corporate governance 2018 supercedes CBN, SEC rules, says FRCN

CIBN, KACCIMA question draft copy

The Financial Reporting Council of Nigeria (FRCN) has declared that the new Corporate Governance Code 2018 would serve as the regulatory code in the country by January 1, 2020 when its full implementation commences.

Consequently, the existing code of governance under the laws establishing regulatory bodies like the Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC), among others, would serve as guidelines of operations for public and private businesses.

Executive Secretary of FRCN, Daniel Asapokhai, disclosed this in Kano during at a public hearing and sensitisation on the new draft copy of the code.However, the Chartered Institute of Bankers in Nigeria (CIBN) and Kano Chambers of Commerce, Mines, Industries and Agriculture (KACIMA) have questioned certain recommendations in the draft copy.

Asapokhai hinted that when it commences, the Corporate Governance Code would attract local and foreign investments and enhance the integrity of the Nigerian capital market, as well as entrench a culture of transparency and accountability.

He pointed out that the Federal Government recently set up a 15-member technical committee to review the 2016 Code of Corporate Governance due to some defects, which were against international best practices.

He explained that the new draft, which comprised seven parts, 28 principles and 231 recommendations, focuses basically on high financial reporting standards and corporate governance principles in trade and investments. According to Asapokhai, the committee approached the review of the code with ‘apply and explain principles,’ in order to reduce the cost of doing business in the country, as against the rule based principle in the 2016 code.

Presenting its position, Chairman, Kano/Jigawa chapter of CIBN, Aliyu Wada-Nas, suggested clear roles, protection of whistle-blowers and inclusion of young professionals among board members of companies.

An executive of KACCIMA, Aminu Dangana, said although codes were meant to adopt international best practices, he sought a reflection of cultural and level of business enrolments in the final code.

Chairman, Technical Committee, Muhammad K. Ahmad, argued that the code should apply to all public corporations; whether listed or not, holding companies of public firms and other regulated entities, concessioned and privatised companies, as well as all regulated private concerns.FRCN’s public hearing was part of nationwide awareness creation on the new national governance code.