The Financial Reporting Council has said it is important for companies in the country to strengthen their corporate governance systems.
The Chairman, FRC, Hajia Maryam Ladi-Ibrahim, said this in Lagos on Thursday while presenting a keynote address at 11th annual corporate financial reporting summit.
According to her, the need to continually improve and reform corporate governance has been highlighted by recent examples of massive corporate collapses resulting from weak systems.
She said, “Corporate governance is one major area requiring regulatory and institutional reform. Globally, regulatory reforms and structures are regularly put in place to ensure that companies continually strengthen their corporate governance systems.”
In doing this, she explained that the companies were expected to focus on shareholder and stakeholder relations and accountability, improvements in the performance of boards of directors, auditors and the accounting function, and paying attention to the ways in which the companies were controlled and run.
“Similarly, institutional investors, accountants, auditors and the general public are increasingly aware of a continuing need to promote corporate governance reforms. Scandals such as Enron, Pamalat, etc, which are still fresh in most memories, have driven home this need for constant reform,” she added.
According to the FRC Chairman, the purpose of corporate governance is to facilitate effective entrepreneurial and prudent management that can deliver the long-term success of a company.
Ladi-Ibrahim, who said regulatory and institutional reforms were international benchmarks for enhancing productive capacities through Foreign Direct Investment, explained that the summit was also meant to prepare stakeholders for the wider implications of the soon to be released National Code of Corporate Governance for Nigeria.
Stressing that as the largest economy in Africa Nigeria could not afford to be left behind, she said, “The National Code of Corporate Governance is expected to ensure that Nigerian entities are directed in much more responsible and accountable ways, thereby resulting in meaningful contribution to our economy at large.”
She expressed the confidence that the proper implementation of the code would lead to further attraction of the FDI and the creation of more jobs for Nigerians.
In his welcome address at the summit, the Chief Executive Officer, FRC, Mr. Jim Obazee, said that in its 11 years of existence, the annual corporate financial reporting summit had supported the consultation of stakeholders in the financial reporting process in Nigeria.
“It is gratifying to note that a number of issues discussed at last year’s summit are now apparatus and pillars of current institutional reforms that are worthy of celebration because of their far-reaching impact on financial reporting in Nigeria,” he said.
He added the theme of this year’s edition of the summit, ‘National Code of Corporate Governance: A new regulatory benchmark for Nigeria’ was timely.
Like Ladi-Ibrahim he warned that the implications of corporate governance failures could no longer be ignored.
The Chairman, FRC, Hajia Maryam Ladi-Ibrahim, said this in Lagos on Thursday while presenting a keynote address at 11th annual corporate financial reporting summit.
According to her, the need to continually improve and reform corporate governance has been highlighted by recent examples of massive corporate collapses resulting from weak systems.
She said, “Corporate governance is one major area requiring regulatory and institutional reform. Globally, regulatory reforms and structures are regularly put in place to ensure that companies continually strengthen their corporate governance systems.”
In doing this, she explained that the companies were expected to focus on shareholder and stakeholder relations and accountability, improvements in the performance of boards of directors, auditors and the accounting function, and paying attention to the ways in which the companies were controlled and run.
“Similarly, institutional investors, accountants, auditors and the general public are increasingly aware of a continuing need to promote corporate governance reforms. Scandals such as Enron, Pamalat, etc, which are still fresh in most memories, have driven home this need for constant reform,” she added.
According to the FRC Chairman, the purpose of corporate governance is to facilitate effective entrepreneurial and prudent management that can deliver the long-term success of a company.
Ladi-Ibrahim, who said regulatory and institutional reforms were international benchmarks for enhancing productive capacities through Foreign Direct Investment, explained that the summit was also meant to prepare stakeholders for the wider implications of the soon to be released National Code of Corporate Governance for Nigeria.
Stressing that as the largest economy in Africa Nigeria could not afford to be left behind, she said, “The National Code of Corporate Governance is expected to ensure that Nigerian entities are directed in much more responsible and accountable ways, thereby resulting in meaningful contribution to our economy at large.”
She expressed the confidence that the proper implementation of the code would lead to further attraction of the FDI and the creation of more jobs for Nigerians.
In his welcome address at the summit, the Chief Executive Officer, FRC, Mr. Jim Obazee, said that in its 11 years of existence, the annual corporate financial reporting summit had supported the consultation of stakeholders in the financial reporting process in Nigeria.
“It is gratifying to note that a number of issues discussed at last year’s summit are now apparatus and pillars of current institutional reforms that are worthy of celebration because of their far-reaching impact on financial reporting in Nigeria,” he said.
He added the theme of this year’s edition of the summit, ‘National Code of Corporate Governance: A new regulatory benchmark for Nigeria’ was timely.
Like Ladi-Ibrahim he warned that the implications of corporate governance failures could no longer be ignored.
PUNCH.
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