Preamble Plans to harmonize the corporate governance legal framework in Nigeria began in January, 2013 when a Steering Committee on National Code of Corporate Governance was commissioned to harmonize and unify all existing sectoral codes in Nigeria. Consequently, in 2016, the Financial Reporting Council of Nigeria (FRCN) published a draft 3-part National Code of Corporate … More Nigerian Code of Corporate Governance 2018: necessity or superfluity?
The financial Reporting Council of Nigeria recently released a harmonized code of corporate governance applicable to three key sectors – public, private and non-profit sectors. The unified code is coming on the heels of the identified need to infuse and standardize healthy corporate governance practices for the various sectors and strengthen accountability and transparency in … More New Corporate Governance code limits tenure of founders and leaders of religious and other non-profit organizations in Nigeria.
A milestone has been achieved in Nigeria’s Corporate Governance landscape with the commencement of the much anticipated National Code of Corporate Governance from October 17, 2016. The commencement is coming almost three years later than the originally planned date – January, 2014. According to The Financial Reporting Council of Nigeria (FRC), the Code of Corporate … More Harmonised Code of Corporate Governance for Private Sector in Nigeria, 2016: Highlights and salient provisions
On Monday July 4, 2016, the Central Bank of Nigeria (CBN) released a Press Statement on Skye Bank to inform the public of its decision to effect key changes on the board and management of Skye Bank Plc because the bank had fallen short of minimum thresholds in critical prudential and adequacy ratios. The statement further … More Regulatory intervention in Skye Bank Plc: outcome of failure in Corporate Governance
Corporate Governance is about how organisations are managed and it encompasses a range of aspects with various roles for various participants or stakeholders in the organisational system of a company. A critical participant in this system is the Board of Directors. Universally, it is accepted that the Board is responsible for the performance of the … More Statistics of Board composition of 30 most capitalised companies on the Nigerian Stock Excahnge
The global architecture of corporate governance is certainly witnessing increased activism as corporations have begun to take drastic measures to check abuse of executive office more than ever before. In recent times, shareholder activism, board diversity and corporate governance enforcement are some themes that have received increased attention in the sphere of corporate governance. With … More Corporate Governance in action: The Afren Plc example
With effect from October 1, 2014, a new regime of corporate governance is expected to be in operation in the Nigerian banking industry. By a circular dated May 16, 2014, the Central Bank of Nigeria (CBN) forwarded the new code of corporate governance and guidelines for whistle blowing in the banking industry to the … More Sanction-backed corporate governance code for Banks and Discount Houses in Nigeria
It is now a well settled fact that good corporate governance is instrumental to the overall well-being and productivity of corporate organisations. The global financial crisis provided a classic case of the effect of weak corporate governance in corporate organisations. In Nigeria, some corporate failures exposed the gross deficiencies in the area of Corporate Governance … More Nigerian Stock Exchange to introduce Corporate Governance Index for listed companies
Photo credit: freedigitalphotos.net Introduction Independent directorship has gained considerable significance in modern corporate governance, especially in developed economies. A basic feature of corporate governance codes in most jurisdictions is the use of non-executive directors who are usually independent of management. The non-executive director is a member of the board who does not have any executive … More Is the independent director really independent?
Background The subject of corporate governance in Nigeria received greater attention after the global financial crisis in 2008-2009. Corporate failures, particularly in the banking industry during the period revealed huge lapses in corporate governance in the affected organisations. Since then, there have been assiduous attempts to enhance corporate governance structures and practices in the country. … More The future of corporate governance in Nigeria: an evolution from principles based to rules based approach.