11 November 2016
Introduction
The Financial Reporting Council (“FRCN”) of Nigeria on the 17th of October 2016 issued a three-in-one National Code of Corporate Governance (“NCCG”), which seeks to provide regulations on corporate governance as it relates to, public and private companies registered under Nigerian law as well as Nigerian public entities.
The three codes issued by the FRCN are namely;
(i). National Code of Corporate Governance for the Private Sector in Nigeria 2016 (“Private Sector Code”);
(ii). Public Sector Governance Code in Nigeria 2016 (“Public Sector Code”); and
(iii). Not-For-Profit Organisations Governance Code 2016 (“Not-For-Profit Code”).
Both the Private Sector and Not-For Profit Codes were stated to become effective immediately on the 17th of October 2016, whilst the Public Sector Code is scheduled to take effect after an executive directive from the Federal Government has been secured to that effect.
In this article, we have sought to briefly address the validity of the NCCG as well as opine on the salient provisions of the Private Sector Code and its implications on the operations of the companies that it seeks to regulate.
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