The Federal Government on 15th January 2019 formally unveiled the Nigerian code of corporate governance 2018 (the “Code”). The Code which was put together by the Financial Reporting Council “FRC” and other stakeholders seeks to institutionalize corporate governance best practices in Nigerian companies.
Vice President Osinbajo, in commending the Governing Council of the Financial Reporting Council and all stakeholders that contributed to the Code, said: “As we promote and imbibe best practices in corporate governance, I am hopeful that given the constant flow of talents from the corporate world to the political space and vice-versa, we will also be promoting and demonstrating higher standards of governance practices in the political space over time so as to reduce the rate of defections of politicians.”
The Vice President also assured Nigerians that the full implementation of the Code would promote corporate success and economic growth, lower cost of capital and help minimize wastage and corruption in the country. The Code, which has been long awaited, is also expected to satisfy the desire of Nigerians for higher standards of corporate governance and ethical practices in the business environment and help to rebuild public trust and investor confidence in the Nigerian economy.
It is indeed a welcome development that Nigeria, like many other nations, can now boast of a Code which harmonizes different sectors of the economy. The Code comes on the heel of a suspended attempt by the FRC to issue a national code in 2016.
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