FRC: Compliance with Nigerian Code of Corporate Governance Above Average

The Director and Head of Corporate Governance Directorate at the Financial Reporting Council, Nigeria (FRC), Mr. Titus Osawe, have reported a positive trend in compliance with the Nigerian Code of Corporate Governance 2018 (NCCG) among publicly quoted companies.

Mr. Osawe made this observation during a two-day training program themed “Governance, Risk, and Compliance (GRC),” conducted by the FRC in collaboration with Planet Governance Advisory Limited (PGAL) in Victoria Island, Lagos.

Mr. Osawe emphasized that corporate governance aims to ensure that organizations are structured to operate effectively, with a focus on longevity and sustainable practices, irrespective of changes in ownership.

He pointed out that general compliance with the Nigerian Code of Corporate Governance is currently above average.

While acknowledging that there are limitations to capturing all compliance aspects, especially in cases that aren’t easily quantifiable, he emphasized that publicly listed entities are demonstrating a strong commitment to compliance, notably due to its mandatory nature.

Osawe noted that during their monitoring and assessment, it became evident that, for some entities, compliance had been approached as a “box-ticking” exercise, wherein the objective was often just to meet the minimum requirements without a deeper commitment to the principles of corporate governance.

This positive trend in corporate governance compliance among publicly traded companies in Nigeria is an encouraging sign of the growing awareness and commitment to robust governance practices, which are essential for the long-term success and stability of businesses.

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