October 28, 2013
By Nnamdi Duru
The National Insurance Commission (NAICOM) has said the major regulatory bodies in the Nigeria’s finance sector were considering amalgamating the Corporate Governance codes existing in the respective sub-sectors in the industry.
According to the commission, this process would be followed by the making of relevant laws to make compliance with the consolidated codes mandatory for boards and management of companies operating within the sector. [EXPAND Read more]
The Commissioner for Insurance, Mr. Fola Daniel, stated this while fielding questions from newsmen after the meeting of the newly-inaugurated Governing Board of NAICOM in Lagos recently. Codes of Good Corporate Governance for the insurance industry currently cover structures, practices and procedures put in place by the board and persons duly appointed by the owners to direct and manage the business of the company. It is also expected to ensure transparency, accountability and enhanced shareholders value.
According to him, implementation of corporate governance is the business of Board of Directors of companies even as they are said to be advisory and not mandatory for now.
He also confirmed that the major regulators in the finance sector including the Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC) and the NAICOM were trying to harmonise the codes they issued for operators under their supervision respectively.
After amalgamating these codes, the regulators are likely to give the document a legislative back up to make compliance with the codes compulsory and make it possible for the law to be enforced, he added.
“Corporate governance as advisory, I think, will soon become a thing of the past. There is an attempt to amalgamate all the codes as set by the pioneers of corporate governance. SEC is the pioneer of corporate governance even before the banks. The Central Bank followed suit and we were the last comer. I am happy that we did it when we did because if we didn’t pass our corporate governance codes then we would have been the old man out.
“So there is an attempt to amalgamate it and give it some legal backing as we have in the United Kingdom. In the United States of America it is comply or explain but American society is advanced. People will naturally even want to comply in order to advance their business interests but here we are trying to give it a bit of legislative push,” Daniel said. [/EXPAND]