The new Code of Corporate Governance in Nigeria (CCNG) is expected to take effect on January 1, 2020, following the unveiling of the exposure draft of the new (FRC).
Executive Secretary/CEO, FRC, Mr. Daniel Asapokhai, stated this in Lagos yesterday at the Annual General Meeting (AGM) of the International Chambers of Commerce Nigeria (ICCN), with the theme, ‘Framework for New National Code of Corporate Governance’.
Asapokhai, who represented the FRC chairman, Mr. Adedotun Sulaiman, as guest speaker at the event, said that the philosophy of the new code is principle-based and less prescriptive than the old code.
According to him, the mission of FRC is to primarily promote trade and investment in Nigeria.
He stated: “We believe having a national code that a lot of our commercial enterprises adhere to, will increase national development.
The code aims to standardise the practice of good corporate governance and induce voluntary compliance with the highest ethical standards across the Nigerian market.
“Due to the fact that many companies that are expected to implement the code may not currently have adequate corporate governance structures, companies would be required to begin reporting on the application of the Code in their annual report, starting in financial years ending on or before January 1, 2020.”
The FRC helmsman said people have six weeks between now and end of July to study the draft code with a view to making necessary inputs before a new national code is finally unveiled.
In his opening remarks, Chairman, ICC Nigeria, Mr. Babatunde Savage, said one of the motives of inviting the FRC chairman as the guest speaker at the event is to examine how to adopt the highest standards of corporate governance to achieve long term value for all. He said ICC Nigeria has exposed key rules, codes and policies to the business environment.