The Financial Reporting Council (FRC) has released a new draft of its code of corporate governance which it said it expected to enhance Nigeria’s competitiveness.
The new code, which has 28 principals of corporate governance and 230 practices on how companies should implement the principles, was announced wednesday at a media briefing in Lagos.
Speaking at the event, the Executive Secretary/ CEO FRC, Mr. Daniel Asapokhai said: “I think this is something that is here to enhance national competitiveness. It would represent a national standard of good corporate behaviour.
â€œIt would provide a flexible framework and it has 230 recommended practices of what it means to effectively govern an institution. It also provides a framework for other sector regulators to contribute.
â€œSo, we have a national code into which the other codes that currently exists to different sectors of the economy can align.”
He also declared the FRC’s plan to embark on a public hearing and awareness in all geopolitical zones of the country, including the Federal Capital Territory to elicit comments and reactions from key stakeholders, which will be taken into consideration in finalising the code.
He added: “It is our belief that this code will promote ease of doing business, attract local and foreign investments and enhance the integrity of the Nigerian market by entrenching a culture of disclosure, transparency and accountability.
â€œIn addition, this code will raise public awareness for essential corporate values, ethical practices and stakeholders’ confidence.”
Asapokhai further emphasised that the practices recommended in the code are flexible and scalable and can be applied by all organisations regardless of their size. He advised the companies that are governed by the code to take advantage of the flexibility provided by the code.