Vice President Yemi Osinbajo at the official launch of the Nigerian Code of Corporate governance 2018 says the Federal government is optimistic of a sustainable business environment with the launch of the code, stating that it will grow investor’s confidence in Nigeria’s business climate.
The Vice President, who said this at the unveiling ceremony in Abuja on Tuesday, said the implementation of the Nigerian Code of Corporate Governance 2018 was worthwhile and would promote corporate success and economic growth, lower cost of capital and help minimise wastage, corruption and mismanagement.
“The Code has been long awaited, and it is my hope that it will play a unique role in enthroning higher standards of corporate governance and ethical practices in our business environment, helping to rebuild public trust and investor confidence in the Nigerian economy,” he said.
In his remarks at the launch, Okechukwu Enelemah, minister of industry, trade and investment, said global financial crisis had exposed significant shortcomings in the corporate governance of companies, stating that strict adherence to the laid down regulatory procedures would ensure investors confidence was sustained in dealing with Nigerian businesses.
“We have seen monumental failures in risk management, a spate of accounting scandals and outright fraud,” he said.
Speaking further on the impact of good governance in instilling confidence on the investors, Enelemah said it would also instigate rapid growth in corporate markets, saying, “The investment decisions taken by the local and international investors are stimulated by good corporate governance practices.”
Giving further insight into the code issue, M.K Ahmad, chairman of the technical committee for the review, said, “Corporate governance is supposed to be a key driver in government’s accountability,” saying institutionalisation of corporate governance was key in addressing industry collapse and other key concerns.
“If we institutionalise corporate governance, the investors wherever they are will have established confidence in dealing with us, and the overall aim of improving trade and economy would be achieved,” he said.
He pointed out that the Federal Government had engaged in stakeholder engagement before comprising of professional institutes, associations, key sector regulators, key industry players, large size companies and medium size companies to ensure we come out with acceptable code of practice.
