Vice President Yemi Osinbajo said that the implementation of the Nigerian Code of Corporate Governance would promote corporate success and economic growth as well as lower cost of capital.
Osinbajo said this in Abuja on Tuesday during the unveiling of Nigerian Code of Corporate Governance 2018 and added that the implementation would also help to minimise wastage, corruption and mismanagement.
“The code has been long awaited and it is my hope that it will play a unique role in enthroning higher standards of corporate governance and ethical practices in our business environment.
“It will help to rebuild trust and investor confidence in the Nigerian economy,” he said.
Osinbajo said that the principle-based approach and other constructs in the code would be helpful and consistent with focus on Ease-of-Doing-Business.
He said that Nigeria was taking a big stride in the efforts to be the preferred investment destination.
Osinbajo said that the implementation of the code underscores the importance government attached to ensuring the sustainability of business operating in Nigeria.
Dr Okechukwu Enelamah, Minister of Industry, Trade and Investment, said that Nigerian companies needed to adhere to good corporate governance practices and standards, to gain competitive edge required to survive in competitive and dynamic markets.
Enelamah said that good governance was essential to ensure transparency of capital markets, protection of minority shareholder rights, attract and retain Foreign Direct Investment.
He said that good governance instill investor confidence and instigates rapid growth in corporate market.
“As corporations compete to attract capital from international market, investors assess the companies using numerous factors such as sustainable track records and use of good corporate governance principles,’’ he said.
Enelamah said that there would be need to revise the Nigerian Code of Corporate Governance 2018 from time to time.
He said that the issuance of the code would foster the achievement of government’s initiative of enhancing the ease of doing business and also pave way for new opportunities and growth of the capital market.
Mr Adedotun Sulaiman, Board Chairman, Financial Reporting Council of Nigeria (FRCN), said that the suspension of the first attempt in 2016 made the council to go back to the drawing board.
Sulaiman said that the council leveraged on the lessons learnt for the current effort and was reflected in the extensive consultation and engagement with stakeholders.
Mr Daniel Asapokhai, Executive Secretary, FRCN, said that the document would ensure high standards of financial reporting and promote good governance.
Asapokhai said that Nigeria needed to set standards for accountability, monitoring and to enforce compliance with financial reporting.
He said that it was the first time the country would have good standards to work with, adding that the code will be used to promote trade and investment.