CBN issues exposure draft on national code of corporate governance

Central Bank of Nigeria (CBN) has issued exposure draft on the national code of corporate governance by the Financial Reporting Council of Nigeria (FRCN).

Following the public hearing held on June 30, 2015, FRCN on December 29, 2015 released drafts on the national code of corporate governance for private, public sectors as well as not-for profit organisations to make inputs.

But the CBN said most of its inputs/observations submitted during the public hearing, which it considered critical to the smooth operations of the banking industry, were not considered in the released draft.

The CBN said it also observed that other significant contributions from a number of banks and other financial institutions on the private sector code were not also considered.

“We advise on the need to ensure that relevant inputs that would enhance the status of the codes as well as facilitate efficient and effective operation of the financial are factored in by FRCN before the codes are finalised,” Kevin Amugo, director, financial policy and regulation department, CBN, said in a circular.

“Accordingly, we invite you to forward your inputs and or concerns on national corporate governance codes to the director, financial policy and regulation department by March 29, 2016, to enable us articulate a common position for the banking industry and to engage with the FRCN in respect thereof,” the circular to all banks and development banks, noted.