The Financial Reporting Council (FRC) has released an exposure draft of the code of corporate governance for the public sector.
A corporate governance code sets guidelines for how board members and directors should manage governance in their organizations.
On Monday, the FRC, in collaboration with the Ministry of Finance Incorporated (MOFI) and the Institute of Directors, Centre for Corporate Governance (IoDCCG), presented the draft at a press briefing for the upcoming national corporate governance summit.
Scheduled for later this month, the summit is themed “Institutionalising Corporate Governance for National Transformation: The Imperative for Public Private Sector Collaboration.”
The FRC stated that the summit will emphasize the importance of fostering partnerships between government entities and private businesses to drive sustainable development, improve service delivery, and promote economic growth.
Urum Eke, the summit’s convener and chairman of IoDCCG, stressed the crucial role of corporate governance in both public and private sectors as a catalyst for achieving a $1 trillion economy.
“We’re targeting a $1 trillion economy, and one of the key enablers is proper corporate governance,” Eke said. “Implementing the right corporate governance enhances shareholder value, as there is a proven link between good governance and corporate performance. Corporate failures often stem from poor governance, even when technical insolvency is a factor.”
Rabiu Olowo, FRC’s CEO, highlighted the summit’s relevance to the public sector.
“It is time to focus on corporate governance in the public sector,” Olowo said. “We’ve seen the success of corporate governance in the private sector, and this summit will showcase the Financial Reporting Council’s efforts to develop a code of corporate governance for public institutions. The summit will be a premier event for discussing changes, trends, challenges, and best practices in corporate governance in Nigeria, impacting national transformation. It will bring together practitioners, industry leaders, experts, and professionals to discuss critical issues shaping governance in public and private organizations, offering networking opportunities for knowledge exchange, brand recognition, and collaboration.”
Olowo also mentioned that the summit aims to integrate an ethical governance system in both private and public sectors of the Nigerian economy, establishing and enforcing standards for individuals and organizations.
