Experts from the Institute of Chartered Secretaries and Administration of Nigeria (ICSAN) say Corporate Governance Evaluation is a critical factor and a tool for sustainable development that will make or mar organisational growth
“Corporate Governance Evaluation will improve effectiveness and maximise strengths in organisations; and would promote growth in individual companies and the economy of the country,” says ICSAN.
Speaking at a business meeting, with the theme ‘NCCG2018-The requirement for Corporate Governance Evaluation’, held in Lagos recently, Nelson Anumaka, Deputy Director/Head of the Directorate of Corporate Governance, Financial Reporting Council of Nigeria (FRCN), said the objective is to ensure that the quality of governance is continuously improved upon and promoted.
He added that companies should engage in evaluation to discover areas of strength, weaknesses and make changes.
“The meeting is to indicate to practitioners and their clients what should be done to the improve practice of corporate governance and this will help organisations identify where they are making mistakes,” said Nosike Agokei, the Chairman, Planet Governance Advisory Limited and Past president ICSAN
However, the National Code of Corporate Governance 2018 which was issued by the Financial Reporting Council of Nigeria (FRC) has become effective from 15th January 2019 while the reporting in annual reports commences in 2020.
According to Francis Olawale, the Chairman, ICSAN, Lagos Chapter and Principal Partner Franks Nominees, National Code of Corporate Governance 2018 is out, noting that the FRC has introduced evaluation of procedures, practices and policies which is new in the code.
Olawale observed that ICSAN as a professional Institute among others had the greatest representation in the committee that drafted the new corporate governance code and chartered secretaries are best suited for Corporate Governance Evaluation.
“The new code has about 28 principles and one key aspect is corporate governance evaluation and we are the most qualified professionals to handle it.
“We thought to build the capacity of our members to handle such exercise effectively and as a chapter we would embark on further workshops so we can be well positioned to serve the economy,” he said.
However Agokei pointed that if Nigeria has a code of regulation that there is a need for sanctions to enhance compliance.
“Without sanctions, organisations may refuse to take action. The FRC has to do something to make some people comply,” he urged.
ANTHONIA OBOKOH
