Corporate governance scandals have reduced in Nigeria, says ICSAN

The Institute of Chartered Secretaries and Administrators of Nigeria (ICSAN) yesterday said that the scandals hovering around corporate governance in Nigeria had reduced with the new Nigerian Code of Corporate Governance (NCCG) 2018.

It said that the new Corporate Governance Code published by the Financial Reporting Council of Nigeria (FRCN) indicates that scandals by organisations have gradually reduced.

The institute, which stated this yesterday during a courtesy visit to Rutam House, headquarters of The Guardian, noted that better days are ahead, especially with the new code, which seeks to institutionalise and encourage better corporate governance practices in Nigerian companies.

Chairman, Publicity and Advocacy Committee, ICSAN, Lynda Onefeli, spoke ahead of the institute’s 2020 Company Secretaries and Registrars’ Forum themed “Nigerian Code of Corporate Governance 2018: The Role of Company Secretaries and Capital Market Stakeholders.”

According to her, the institute sees corporate governance as an emerging issue and how it impacts on the immediate environment.

Also, a member of the committee, Fassy Yusuf, who spoke on the issue of succession planning and membership of boards, where some representations with shady backgrounds and people with criminal records are sitting on the boards, said: “Fundamentally, it is not possible. A criminal is somebody who has been convicted for fraud or any act that will bring shame or ridicule to an organisation. The person, according to CAMA, cannot be a director in a public company except if it is a private company where they can choose whoever they want as a member of aboard.

“In Nigeria, so many people have not been convicted. Some companies shy away, but if the person has the connection, he will go in there.

“As we don’t have the power not to ask them to incorporate, we will always meet them when we have the opportunity.

“Even as we have the perception of people, if the court has not made any pronouncement, the person cannot be pronounced criminal.”