The proposed National Code of Corporate Governance (NCCG) for the country would be operational by June 2016.
This was disclosed by the Chief Executive Officer, FRC, Mr. Jim Obazee while addressing the press at of the 12th annual corporate financial reporting summit held in Lagos.
The theme of the summit was “National Code of Corporate Governance for Nigeria: A New Dawn in Compliance.
He said that the private sector code as well as that for not-for-profit would be operational before the end of the first quarter of next year, saying that the public sector code would have to be approved by the Federal Executive Council (FEC).
Obazee said, “Once we conclude this summit, we would definitely progress with the NCCG. In the first quarter of 2016, the private sector code and the not-for-profit code would be operational. For the public sector code, we still intend to go to FEC because there are already corporate governance structures within legislations by different government bodies.
“So, we need the government to make a pronouncement wherein there would be like a general harmonisation such that irrespective of what you have, you are to comply with the National Code of Corporate Governance for Public Sector. But, within the first six months of next year, we would go through our Minister, to the FEC, to secure the nod of the government to implement that.”
Obazee noted that the two-day financial reporting summit would be like a second public hearing, adding that during the last public hearing on the NCCG, comments were received and would be discussed at the summit, saying that the aim is to have an all-embracing code that would be acceptable and useful to all.
He said though some amendments had been made on the proposed NCCG, the FRC still intends to retain the area of joint auditors.
“If your turnover is over N10 billion, you will definitely have joint auditors which will require you to have joint auditors. If you have an international firm, like one of the big four auditing you, you will still need a national firm because we want a situation where the international firms, in the course of working with the national firms, are able to develop them technically and build the capacity that is required for our environment. We want don’t just want to have the big four firms, we want a situation where the international firms, in the course of working with the national firms, are able to develop them technically and build the capacity that is required for our environment. We want don’t just want to have the big four firms, we want a situation where in Nigeria, we can have the big 12. That would lead to employment generation.
“Of course, another controversial area has to do with not-for-profit. The point that is required is that there is openness, accountability and objectivity, so that somebody can be held responsible at any point. All of the concerns at the public hearing have been reviewed,” he said.