IoDCCD: $1 trillion economy achievable in 5 years as FRC begins sanctions

The Financial Reporting Council (FRC) has said it will impose sanctions on private and public entities that breach the country’s corporate governance code, the chairman of the Institute of Directors’ Centre for Corporate Governance said. Nigeria can achieve its $1 trillion economic growth target if institutions adhere to the right structures and code.

Speaking at the two-day National Corporate Governance Summit in Lagos, IOD CCG Chairman Dr UK Eke affirmed that Nigeria can become a one trillion naira economy if things are done right.

He stressed the need to involve both the private and public sectors in the corporate governance ecosystem, saying: “It is not just about the public or the private sector, but about making it all inclusive so that together we can focus on each of our corners and try to create the right governance structures that will really transform this economy.

“We strongly believe that we can get to the $1 trillion economy in about five years. All we have to do is build the right structure. The federal government, through the Ministry of Finance Incorporated, has assets under management of over $40 trillion, we were told. Imagine what that means.

“Now, this is without proper governance structures. Think of corporatizing the public entities. Think of corporatizing the railways, the airport, the seaports, the highways, and then creating the proper governance structure. Then we can easily surpass the benchmark of $1 trillion economy.”

On his part, the Chief Executive of the FRC, Dr Rabiu Olowo, noted that as a regulator, the council works to ensure that corporate governance is deepened in organisations. “When I came in August last year, the first company we sanctioned was a government entity, sending a message to the private sector that we are coming, because it is not happening.

“So we’re moving away from the hard issues of corporate governance, like whether you have a board. We’re moving towards the soft issues, like diversity on board, commitment to your value, executive pay, ESG. And that’s why we’re recruiting independent corporate governance reviewers. We’re looking for experts in both the public and private sectors to strengthen our monitoring and evaluation team, so that we can deepen the level and scope of what we do.”