FRC to launch corporate governance code for public institutions and non-profit sector

The Financial Reporting Council of Nigeria (FRC) has revealed plans to introduce a new corporate governance code for public institutions and the non-profit sector.

Rabiu Olowo, Executive Secretary and Director General of the FRC, said the initiative is in line with the FRC’s ongoing commitment to raising governance standards across sectors in the country.

He disclosed this during a meeting with the management of the Institute of Directors (IoD) in Abuja on Thursday.

According to him, the development of a code for public institutions is of the utmost importance because it recognises their key role in the governance and quality of law on which society is based.

He said that despite the lack of a nationally accepted management system in the public sector, the FRC is determined to fill the gap. Olowo therefore called on the Institute of Directors to join the FRC in advocacy, proof of concept stages and presentations to ensure the success of the initiative.

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“We are currently working on introducing a similar code for public institutions. We believe that public institutions are the ones that are key to the way we manage. This affects the quality of our laws, and institutions in this sector are the ones that really support society.

“But unfortunately there is no known code or known framework that is accepted nationally as a way to transact and do business in this particular sector. We have called you, but we will call you again to join us, especially in the phase where we are doing advocacy, doing proof of concept, doing demos so that people can understand what we are doing. So this is a very, very important phase for you to join us to see this succeed.

The FRC chief added that the FRC is also working on a new corporate governance code for the non-profit sector. He said that the sector, with its significant national and international dimensions, plays a key role in social coordination.

“In a similar vein, we are also trying to push through a new corporate governance code for the nonprofit sector. We thought that was absolutely important. This sector has many national and international dimensions, and they are absolutely important in the way we coordinate as a society,” he said.

Olowo also highlighted recent initiatives by the FRC, including the launch of the Corporate Governance Guideline for Small and Medium-sized Enterprises (SMEs), which aims to support SMEs that often struggle in a difficult economic environment. He said the guidelines aim to provide essential information to help these businesses remain sustainable.

In his address, Tijjani Borodo, President and Chairman of the Governing Council of the Chartered Institute of Directors Nigeria, said the Institute is committed to the continuous professional development and improvement of the conceptual skills of directors, promoting the perpetuation of good corporate governance in workplaces and best practices in resource management in both the public and private sectors.