• Tuesday, March 19, 2024
businessday logo

BusinessDay

Need for regulatory oversight advocated, as IoD inducts new members

Stakeholders advocate collaborative regulatory environment for industrial development

The need for a market-led regulatory oversight to deepen good corporate governance practice in Nigeria has been advocated, as the Security and Exchange Commission (SEC) and Oando Plc financial infraction case continues to gather momentum in view of the corporate governance issues raised by the regulatory body against the company’s board.

“This situation unfortunately is further exacerbated by the lack of, absence and the perception that those empowered to exercise such oversights themselves have serious issues of corporate governance to contend with. So, where do we begin to reset our sovereign corporate governance issues? Which comes first?” Olufemi Awoyemi, founder/CEO Proshare Nigeria Limited, said at the June 2019 New Members’ Induction held in Lagos with the theme, ‘Governance: Who Guards the Guardians’?

According to him, the range of issues directors are liable for is justifiably lengthy, yet unexhausted especially when put side-by-side against a regulatory regime whose laws, rules and directives have a longer shelf life than business practice and evolving trends.

“Do we start with restructuring the regulatory architecture – laws, institutions and executive oversight principles or focus on the operators, directors and operating environment or simultaneously do both through proper and scalable reform management!

“While this debate struggles with traction, It is my considered view that, Directors are better served by immediately availing themselves with best practices; upgrade their knowledge, understanding and application of their roles and responsibilities to render unto themselves and society a risk-based discharge of their functions. Waiting for clarity brings with it unintended consequences,” Awoyemi stated.

He further opined that in a regulatory clime that assumes the role of accuser and judge (as the rules currently stand); it is no longer optional for directors to update their knowledge on the rules of engagement. “There is a huge premium on assuming things based on intent/ions, general practice or/and best practice,” he said.

However, he wants the IoD to retain a watching brief on regulatory developments especially on the SEC/Oando case with a view to coming out with learning guidelines around the pain points of the case study when the dust finally settles.

Ahmed Rufai Mohammed, president and chairman of governing council, Institute of Directors (IoD) Nigeria said the institute prides itself as the national champion of good corporate governance in Nigeria. “Our pride is in our members who are dedicated and always manifest an uncommon ability to direct and lead their organisations in accordance with the principles of good corporate governance and sound business ethics,” Mohammed said.

According to him, the advocacy role of the IoD in the entrenchment of best practice in how directors lead their organisations starts through the ‘Company Direction Course I’ capacity development program of the institute for new members.

However, in his charge to the newly inducted members, Mohammed said, “…your admission into the Institute today is both a call and admission into the global network of responsible group of leaders that have committed themselves to be change agents in their business and private lives and have pledged to champion positive changes in their organisations and the economy at large”.

 

SEYI JOHN SALAU