The Financial Reporting Council (FRC) of Nigeria is set to establish a new Not-for-Profit Governance Code (NNFPGC) aimed at enhancing transparency and accountability within the sector.
This announcement came during a hybrid stakeholder engagement and consultation event held in Lagos, where key figures in the industry gathered to discuss and review the draft code.
Rabiu Olowo, chief executive officer of the FRC, emphasised the importance of stakeholder involvement in shaping the code. “Your active dialogue and engagement at this critical stage of the code development are vital as we approach the final release of the Nigeria Not-for-Profit Governance Code this year. The success of this Code relies not only on its content but also on the collective wisdom and experiences of those it aims to guide,” Olowo stated.
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He further explained that the code’s implementation would foster transparency, accountability, and trust within organizations. “By participating in this process, you are helping ensure that the Code reflects the realities, challenges, and aspirations of the sector. Our goal is to create a practical and impactful framework that strengthens the sector and supports the valuable work done for our communities,” Olowo added.
The FRC’s initiative follows a successful precedent set by the Nigerian Code of Corporate Governance (NCCG) 2018, which was developed under the leadership of M.K. Ahmad. The success of the NCCG 2018 inspired the FRC to develop similar codes for the public and Not-for-Profit sectors. In February 2023, the Honourable Minister, as advised by the Council, established two Technical Working Groups (TWGs) to create the Nigerian Public Sector Governance Code (NPSGC) and the NNFPGC.
The NNFPGC is chaired by Joe Abah, former director-general of the Bureau for Public Sector Reform, and comprises 17 other distinguished members representing various sectors. Olowo expressed gratitude for their dedication and expertise, noting that their collective efforts have led to the development of a comprehensive and detailed draft code.
The new code aims to address key issues such as board composition, financial management, sustainability practices, stakeholder engagement, fundraising, and reserve management. These guidelines are intended to build trust with donors, beneficiaries, and the public. This is particularly crucial in Nigeria, where corruption and mismanagement have historically eroded public confidence in institutions.
According to the Transparency International Corruption Perception Index (CPI) 2022, Nigeria ranks 154 out of 180 countries, with a score of 24 out of 100. “The draft Code will help ensure that organizations operate with integrity and align with best practices, enhancing public trust and attracting more local and international funding,” Olowo remarked.
Looking ahead, Olowo expressed hope that the new governance code will significantly strengthen the not-for-profit sector, contributing to a more resilient and inclusive economy. “With the insights gathered from today’s engagement, we anticipate that the NNFPGC will drive sustainable growth and development across various sectors, ultimately benefiting all corners of society,” he said.
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Speaking further, he said, “the Financial Reporting Council of Nigeria as we have come to know, is the Federal Government Agency that is mandated by Law to carry out regulatory responsibilities on financial reporting (accounting, auditing, valuation & actuarial standards issues) and corporate governance in Nigeria, and these bear great significance on the Nigerian economy. Effective monitoring of adherence and compliance to extant frameworks on financial reporting which are embedded in the International Financial Reporting Standards, Local Standards and good corporate governance are key to ensuring transparency and rebuilding confidence of existing and potential investors, who are players in the diverse sectors of Nigeria’s economy.”
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