*Inaugurates technical working groups
*FRC boss: Codes to address corruption, conflicts of interest, appointment, composition of board of directors, others
James Emejo in Abuja
The Minister of Industry, Trade and Investment, Mr. Niyi Adebayo, yesterday said the development of the Nigerian Public Sector Governance Code (NPSGC) would among other things help to rebuild public trust and investor confidence in the Nigerian economy.
The minister said the regulation would also set higher standards of good governance and ethical practices in the public sector.
Speaking at the inauguration of the Technical Working Group (TWG) for the Development of the Nigerian Public Sector Governance Code (NPSGC), under the guidance of the Financial Reporting Council of Nigeria (FRC), Adebayo further pointed out that the code would further engender public accountability of government resources and ensure the sustainability of government-owned entities among others.
The minister also inaugurated the TWG for the development of the Nigerian Not-For-Profit Governance Code (NNFPGC), which he said would enhance the public accountability of interventions from donor and donor agencies as well as ensure the sustainability of not-for-profit entities.
The TWG for the development of the public sector governance code is chaired by former Head of Civil Service of the Federation, Mr. Danladi Kifasi, while former Director General, Bureau of Public Service Reforms (BPSR), Dr. Joe Abah heads the TWG on the drafting of the code for not-for profit.
Adebayo said the events represented a giant stride in the country’s quest to be a preferred investment destination.
He said, “As we promote and imbibe best practices in public governance, I am hopeful that very soon, given the influx of core professionals/practitioners and constant flow of talents from the corporate world to the political space and vis-versa, we will also be promoting and demonstrating higher standards of good governance practices in the political space over time.”
He said the code would enhance the fulfillment of the overall mandate of not-for-profit entities so they can achieve their intended outcomes for citizens and render better service to users as well as help them to operate in an effective, efficient, transparent, and ethical manner going forward.
The minister therefore urged members of the TWGs to employ their wealth of knowledge, expertise, experience, professionalism, and time in developing an acceptable code that will rebuild and reshape perspectives about the public sector, and in the short, medium, and long term, lead to national growth and development.
Speaking at the ceremony, the Executive Secretary, Financial Reporting Council (FRC), Mr. Shuaibu Ahmed, noted that the public sector remained critical for the success of the economy due to the strategic role it plays in the key functioning of the country.
He said as the regulator of businesses in the economy, it is imperative that the public sector is well governed itself, adding that it is in line with this belief that the FRC had always recognised the need for a code that will guide the public sector.
Ahmed further explained that the proposed public sector governance code was necessitated by the fact that the existing Nigerian Code of Corporate Governance 2018 though had enabled Nigeria to join leading countries around the globe with a national code of corporate governance that guides companies on corporate governance best practice – it does not cover Ministries, Departments, and Agencies of the Government (MDAs).
He said, “These institutions will now be covered by the code that will be developed by this esteemed audience, namely, the Nigerian Public Sector Governance Code.”
The FRC boss, among other things, said the proposed public sector governance code must critically address 10 key areas including corruption, diversity challenges, conflicts of interest, appointment and composition of the board of directors, protecting the board secretary, and protecting the internal auditors.
Other areas of focus include appointment and role of external auditors, risk management framework, institutionalising code of ethics and transparency as well as embedding and promoting sustainability frameworks.
On the other hand, he said developing a Code for the NFP sector governance was long overdue, adding that the sector remained critical for the success of the Nigerian economy due to the strategic role it plays.
Essentially, he noted that the non-profit sector had actively been engaged in charitable causes and philanthropy through their corporate social responsibility programmes, adding that charity has progressed from individual charitable acts of helping the poor to more organized philanthropy through the years.
Ahmed said Not-for-Profit Entities were increasingly being used by notable figures including celebrity individuals and families, religious leaders, and wealthy capitalists, primarily using foundations and other non-profit forms to contribute their resources in addressing social problems including alleviating poverty, provision of free education and healthcare, and philanthropic giving.
Therefore, he said NFP entities remained a significant tool for indirectly enhancing the growth and development of the economy through capital mobilisation and imbibing enduring leadership values in the citizenry.
However, he said the proposed Governance Code for Not-For-Profit organisations would be a set of principles and guidelines that would outline the standards of accountability, transparency, and effective governance for non-profit organisations.
The FRC boss said, “The purpose of the code is to ensure that non-profit organisations are well-managed, transparent, and accountable to the communities they serve, stakeholders, and the public.
“The code provides a framework for good governance practices in non-profit organisations, including areas such as board composition, board responsibilities, financial management, and stakeholder engagement. By following the provisions of the code, non-profit organisations can improve their operations and increase their accountability to the public.
“The benefits of the Code of Corporate Governance for Non-profit organisations are many. For one, it helps to enhance the public’s trust in non-profit organizations by promoting transparency, accountability, and ethical behaviour. The code also helps non-profit organizations to better understand their roles and responsibilities, and to develop effective governance practices that support their mission and goals.”
