Nigeria’s quest for attracting more foreign direct investments, FDIs and private capital into the economy, will be accelerated if there is high value for good governance in the public and private sector.
The Founding Partner of Kenna Partners, Professor Fabian Ajogwu, SAN said the above at the October edition of the Nigeria-British Chamber of Commerce breakfast meeting which discussed the theme “Enthroning a Culture of Good Governance”.
Professor Ajogwu who was the keynote speaker asserted that in the 21st century capital will only go to climes that are predictable and well organized. According to him environments that have poor regulations, lose the opportunity for attracting capital and this can affect various sectors of the economy.
Speaking further, he noted that FDIs go to countries that have predictability in policy, stating that capital is not emotional or patriotic. He acknowledged that Nigeria has witnessed an evolution of corporate governance codes, but harped on effective implementation to drive good governance.
Looking at Corporate Nigeria, Professor Ajogwu stressed that to build lasting entities good governance must be entrenched in all spheres.
The legal luminary and scholar, informed stakeholders that corporate governance gained significant recognition due to various financial scandals around the world and collapse of major corporate institutions in the United States and Europe.
“Nigeria’s corporate governance framework has evolved greatly and has gradually been entrenched as an essential element for the success and longevity of companies” Professor Fabian Ajogwu said.
He chronicled the evolution of corporate governance in Nigeria, to include;
- The Code of Corporate Governance for Public Companies, 2003 issued by the Securities and Exchange Commission (SEC)
- Code of Corporate Governance for Banks Post Consolidation, 2006 issued by the Central Bank of Nigeria
- Code of Corporate Governance for Licensed Pension Operators, 2008 issued by National Pension Commission (PENCOM)
- Code of Good Corporate Governance for Insurance Industry, 2009 issued by NAICOM(National Insurance Commission)
Professor Ajogwu also highlighted the following as the Importance of Corporate Governance To The 21st Century Business Climate;
- Risk Management
- Accountability and Transparency
- Improved Investor Confidence
- Stakeholder Assurance
- Benefits the National Economy