The Financial Reporting Council of Nigeria (FRC) has expressed the hope that the Nigerian Code of Corporate Governance 2018 will promote ease of doing business; attract local and foreign investments into the country.
The council said the Code will also enhance the integrity of the Nigerian capital market, by entrenching a culture of disclosure, transparency and accountability.
Executive secretary, FRC, Daniel Asapokhai, spoke during the public hearing on exposure draft of the Nigerian Code of Corporate Governance 2018 for South-South geopolitical zone in Port Harcourt, the Rivers State capital.
He said: “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 capital market, by entrenching a culture of disclosure, transparency and accountability. In addition, this Code will raise public awareness of good corporate governance practices.”
He revealed that the Nigerian Code of Corporate Governance has adopted the ‘Apply and Explain’ principle, which requires companies to apply the requirements of the Code and to explain how they did so.
“The decision to adopt the ‘Apply and Explain’ approach was made after careful considerations of several factors including the Nigerian legal system, Nigerian culture and history, government policies, state of the Nigerian economy, global economic and political climate, and levels of capital inflow of investment coming into the country.
“The Nigerian Code of Corporate Governance 2018 shall apply to all public companies; whether listed or not, all private companies that are holding companies of public companies and other regulated entities, concessioned and privatised companies, and regulated private companies.
“The Nigerian Code of Corporate Governance 2018 was developed based on a comprehensive review of the suspended 2016 Code of Corporate Governance by a fifteen-man technical committee, and extensive consultative and collaborative engagement with a wide range of stakeholders and other regulators,” he said.