Vice President Yemi Osinbajo says the newly developed Nigerian Code of Corporate Governance will reposition the country as a preferred investment destination.
Osinbajo, who made this known while unveiling the Code in Abuja on Tuesday, said the decision by the Financial Reporting Council (FRC) to come up with the corporate governance practices will ensure rapid growth in the business environment.
“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.
“The implementation of Nigerian Code of Corporate Governance 2018 is worthwhile and will promote corporate success and economic growth, lower cost of capital and help to minimise wastage, corruption and mismanagement,” Osinbajo said.
Also speaking, the Executive Secretary of the Financial Reporting Council, Mr. Daniel Asapokhai, said the Code which is for public interest companies will ensure adherence to laid down standards in business activities.
He said the Code, which is the first to be developed and accepted nationally and across all the business sectors of the economy, will stimulate best practices as well as culminate in rapid economy development.
“The primary objective of this Code is the promotion of trade and investment and making business to thrive,” Asapokhai said, just as he called on businesses operating in the country to embrace and fully implement the standards prescribed in the Code.
On his part, the Minister of Industry, Trade and Investment, Dr Okechukwu Enelamah, said the development of the Code will minimise the mortality rate in some industrial sectors occasioned by lack of accepted laid down standards of operation.
The minister said: “The global financial crisis exposed significant shortcomings in the corporate governance of companies. We have seen monumental failures in risk management, a spate of accounting scandals and outright fraud.
“Corporate Governance defines the quality of our market; good governance instils investors’ confidence and instigates rapid growth in corporate markets.
“The investment decisions taken by local and international investors are stimulated are by corporate governance practices.
“As corporations compete to attract capital from international markets, investors assess the companies using numerous factors such as sustainable track records and use of corporate governance code.”
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