The Corporate Governance Triangle is indeed a laudable initiative that marks another milestone in the extensive efforts amongst key stakeholders to enhance corporate governance and compliance best practice across industries in Nigeria. The Chief Executive Officer of NGX Regulation Limited, Ms. Tinuade Awe, stated this at the launch of Corporate Governance Triangle on Tuesday, 22 March, in Lagos.
In her remarks at the event, Ms Awe said, “at NGX Regulation, we have been at the forefront of promoting corporate governance in Nigeria. In 2014, the then Nigerian Stock Exchange (NSE), partnered with the Convention on Business Integrity (CBi) to create the first Corporate Governance Rating System for listed companies in Nigeria. This initiative, which started off with eight companies that participated in the pilot phase of the project, now has thirty-nine companies that are CGRS rated and over six hundred directors that have passed the Fiduciary Awareness Certification Test (FACT)”.
According to Ms. Awe, the CGRS serves to strengthen the corporate governance structures and ethical conducts of listed companies and enhances their ability to meet the compliance requirements of corporate governance code and sectoral guidelines where applicable. “From an investor’s perspective, this tool has provided vital information for investors and consumers, helping them to differentiate between companies on the basis of their compliance and integrity with minimum acceptable standards of Corporate Governance”.
Ms. Awe restated the commitment of NGX Regulation to promote corporate governance in Nigeria. “We will continue to build on our strong heritage from Nigerian Exchange Group Plc (NGX Group) to promote best practices in corporate governance across our ecosystem. As regulatory services provider to Nigerian Exchange Limited (NGX), we remain resolute in our mandate to monitor activities on NGX’s market to ensure that the market and its participants comply with all applicable laws and market regulations.
“We recognize the critical role of collaborations and technology in promoting transparency, which is critical to the effective functioning of the capital market and the financial industry as a whole, and we remain committed to supporting and fostering collaborations such as the Corporate Governance Triangle that promote best practices in corporate governance in Nigeria”, she added.
Ms. Awe congratulated the key parties in the Triangle, the Nigerian Bar Association Section on Business Law (“NBA-SBL”), Nigerian Exchange Limited (“NGX”) and the Institute of Directors, Nigeria (“IOD”), three highly reputable institutions that are committed to leveraging their positions to influence their respective ecosystems, share best practices and develop frameworks that will enhance corporate governance in Nigeria.