Corporate governance is the soul of modern business. It prescribes the rights, responsibilities and powers of all the stakeholders in a corporation. Where corporate governance is poor or lacking, it has adverse effects on any company, and where these adverse effects cut across a larger plane, the entire industry could suffer severely. The consequences of poor corporate governance are even more grevious where the affected industry is integral to economic advancement. Such was the case with the Nigerian banking sector before the Central Bank of Nigeria (CBN) issued the Code of Corporate Governance for Banks and Discount Houses in 2014.
A similar cry for help is currently being raised by stakeholders in the aviation industry. Mr. Ahmed Kuru, Managing Director of Asset Management Corporation of Nigeria (AMCON), has called for the adoption of a code of corporate governance for the aviation industry. He also urged the Nigerian Civil Aviation Authority (NCAA) to enforce sound corporate governance policies to ensure the sustainability of Nigerian carriers. He reported that the aviation industry is belabored with inactive board members, indiscipline amongst management staff and an absentee regulatory body unconcerned with the disorderly state of the industry. He stressed that the aviation industry requires more regulation than even the banking industry because aviation deals with the lives of travelers.
We are hopeful that the NCAA would heed Mr. Kuru’s call and we anticipate improved corporate governance systems in the aviation industry, as drastic as was seen in the banking industry.
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