The Financial Reporting Council (FRC) of Nigeria has disclosed plans to launch a new code of corporate governance for public institutions and the not-for-profit sector.
Rabiu Olowo, executive secretary and chief executive officer of FRC said that the initiative aligns with the FRC’s ongoing commitment to enhancing governance standards across various sectors in the country.
He disclosed this during an engagement with the leadership of the Institute of Directors (IoD) on Thursday in Abuja.
According to him, developing a code for public institutions is paramount, recognizing their pivotal role in governance and the quality of laws that underpin society.
He said that despite the absence of a nationally accepted framework for governance in the public sector, the FRC is determined to fill this gap. Olowo therefore called on the Institute of Directors to join the FRC in advocacy efforts, proof of concept stages, and presentations to ensure the success of this initiative.
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“We are working currently to launch a similar code for public institutions. We believe that public institutions are the ones that are pivotal to the way governance is run. It affects the quality of our laws, and those institutions within that sector, are the ones that really underpin the society.
“But sadly, there’s no known code, or known framework that is nationally accepted as a way of transacting and doing business for that particular sector. We have called on you, but we’ll call on you again to join us, especially the phase where we’re doing advocacy, we are doing a proof of concept, we are doing presentations so that people can understand what we’re doing. So, this is a very, very important phase for you to join us to see that this becomes a success.
The FRC boss added that the FRC is also working on a new code of corporate governance for the non-profit sector. He said that the sector, with its significant national and international dimensions, plays a crucial role in societal coordination.
“In a similar vein, we are also trying to push a new code of corporate governance for the not-for-profit sector. We thought that this is absolutely important. This sector is a sector that has a lot of national and international dimensions, and they are absolutely important in the way that we coordinate ourselves as a society,” he said
Olowo further highlighted recent FRC initiatives including the launch of the Corporate Governance Guideline for Small and Medium-sized Enterprises (SMEs) which aims to support SMEs that often struggle in a challenging economic environment. He said the guideline is designed to provide essential information to help these businesses remain sustainable.
In his remarks, Tijjani Borodo, President and chairman of the governing council of the Chartered Institute of Directors Nigeria said that the Institute is committed to continued professional education and sharpening of conceptual skills of directors, promoting the entrenchment of good corporate governance in workplaces and best practices in the management of resources in both public and private sectors.
