The Financial Reporting Council (FRC) of Nigeria recently released the Nigerian Code of Corporate Governance (‘the Code”) on January 15, 2019. The Code highlights key principles that seeks to institutionalise corporate governance best practices in Nigerian companies.
KPMG recognises that good corporate governance is a key driver in the establishment of sustainable enterprise. Alignment with leading corporate governance practices will guide companies in establishing a framework of processes and attitudes that increases their value, builds their reputation and ensures their long term prosperity.
Considering the developing awareness and relatively low institutionalisation of leading governance practices in Nigeria, the implementation of the Code may be challenging for those who have not previously had to comply with any corporate governance codes. Whereas, implementation of the principles should be relatively easier for companies that have previously been subject to the provisions of sectoral codes.
In this newsletter, we have provided an interpretative overview of the key provisions in the Code and the key implications for board and key stakeholders of the users of the Code. We have also made an attempt to identify key next steps for those to whom the Code applies and others who choose to adopt its principles.
to download and read more on the 2018 Nigerian Code of Corporate Governance.
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