Regulators, Others Urged to Adhere to Corporate Governance Practices

Regulators, shareholders, policymakers and members of the public have been advised to pay more attention to corporate governance practices in other to stimulate the growth of the Nigerian economy and also to encourage foreign direct investments.

Speaking at an executive breakfast meeting in Lagos that was organised by the Society for Corporate Governance Nigeria (SCGN), the Managing Director/ Chief Executive Officer, Nigeria Deposit Insurance Corporation (NDIC), Alhaji Umaru Ibrahim and the Chief Executive Officer, Economic Associates, Dr. Ayo Teriba, who were the speakers, emphasised good corporate governance practices as top priority in the agenda of regulatory authorities in using robust and stable financial systems to drive national development.

While giving his presentation on “Corporate Governance in Banking: Lessons of Experience,” Ibrahim, cited examples of the global financial crisis of 2007 to 2009.

He pointed out that the failure of good corporate governance practice was the major cause of the distressed banks.

He added that following the crisis in 2007, comprehensive reforms had been embarked on by the regulatory authorities – SEC, CBN, NDIC, NSE to enhance quality of banks, establish financial stability, enable healthy financial sector evolution and ensure the financial sector contributes to the real economy.

He added that there were clear indications that the Nigerian banking system was much stronger than it was before the reforms as shown by the various performance indicators.

Furthermore, Ibrahim explained that successful corporate governance entails operational independence, accountability, transparency of disclosure and integrity. He commended efforts of the SCGN in promoting good corporate governance practices in Nigeria and also urged the society to pay attention to the issue of shareholders’ education and activism.

Also, Teriba, who spoke on “Nigeria’s Post-election Economic Realities,” reiterated that the key concerns for ‘Change’ was having a clear sense of priority.

“Nigeria presently has only six giant sectors out of over 40 sectors and a clear sense of priority is needed on which sectors should be tackled. These sectors, are known as ‘Sectors Enablers’, such as the rail transportation, fuel or energy, electricity and oil refining. The growth of these enablers will help boost the remaining sectors,” he said.

Teriba added that “in trying to address the quest for change, what we need to see is the capacity for renewal across the three tiers of government (executive, legislature and judiciary) and the simple aspects of our economy. One other expectation through change, is the reduction in the financial autonomy within government parastatals.”

He, however, urged that monopoly in some sectors of the Nigerian economy should be checked and the government should encourage privatisation in varying or applicable degrees that will enable and boost certain sectors.