The Financial Reporting Council of Nigeria (FRCN) has released the National Code of Corporate Governance. The exercise was done in accordance with Section 50 of the Financial Reporting Council of Nigeria Act, 2011.
The new code, among other things, requires the Directorate of Corporate Governance to develop the principles and practices of Corporate Governance applicable in Nigeria.
Details of code indicated that the Code of Corporate Governance for the private sector is mandatory while the Code of Governance for Not-for-Profit entities is “Comply or Justify non-compliance”. It also stipulated that the Code of Governance for the Public Sector will not be applicable immediately until an executive directive is secured from the Federal Government of Nigeria. This, it said, was given that the enabling laws that set up most government establishments already carry some form of governance structure that will require an umbrella legislation to unify the different provisions of those laws to synchronise with this Code. Read more