A major step towards business best practices was taken in Lagos with the launch of the Corporate Governance Triangle (CGT).
The Nigerian Bar Association Section on Business Law (NBA-SBL), the Nigerian Exchange Limited (NGX) and the Institute of Directors (IoD) Nigeria signed a Memorandum of Understanding (MoU) to work towards improving the business environment.
NBA-SBL Chairman Ayuli Jemide said the CGT was unique as the participating institutions were all private-sector led, each institution bringing assets that complete the triangle.
He said: “The NGX seats on one angle of the triangle as an umbrella for shareholders of the major companies in Nigeria. The triangle, therefore, has the owners of these companies as major stakeholders.
“The IOD is seated at the second angle of the triangle as a warehouse for directors who play a key role in piloting the companies and representing the interest of the shareholders.
“The third edge of the triangle is NBA-SBL, which represents the community of business lawyers in Nigeria.
“We, business lawyers, are the gatekeepers who advise shareholders and directors on a routine basis on matters pertaining to corporate governance.
“It is my hope that on the back of the launch of the Corporate Governance Triangle, we should all be challenged to become leaders of thought in corporate governance, and our respective institutions should become bastions of corporate governance. “
Jemide said NBA-SBL would launch its Corporate Governance Charter in June.
NGX Chief Executive Officer, Mr Temi Popoola, noted that corporate governance was a key driver of corporate accountability and business prosperity.
According to him, good corporate governance ultimately brings about greater transparency and trust in the Nigerian capital market and positions the market on a strong pedestal as a leading capital market in the region.
He is optimistic that the CGT will further boost good business practices in Nigeria.
“NGX is delighted to collaborate with IoD Nigeria and NBA-SBL on the establishment of the CGT.
“We look forward to working closely with our colleagues in these highly-reputed organisations to formulate and implement initiatives that will further raise the bar on corporate governance standards and practice in Nigeria,” Popoola said.
IoD Nigeria President, Dr Ije Jidenma, described the partnership as strategic, saying the institutions would maximise value from the collaboration.
“We have a lot in common and the country will be better for it if we work together to advance the corporate governance cause. We are stronger working together and speaking with one voice,” she said.
Executive Secretary, Financial Reporting Council of Nigeria (FRC), Shuaibu Ahmed, described the CGT as “a step in the right direction”.
He said: “The FRC greatly welcomes the creation of this Corporate Governance Triangle and make bold to say that it’s a step in the right direction towards ensuring that Nigeria rises to become one of the most economically transformed nations due to healthy corporate governance best practices.”
According to him, a collaboration like this is greatly encouraged to ensure that seemingly complex corporate governance issues are addressed and feedback obtained and shared with relevant regulatory authorities and stakeholders for business-friendly policy reforms.
Ahmed said professionals must work together to fight for the entrenchment of sound corporate governance in both the private and public sectors.
He added: “Make no mistake about it, our voice as professionals is strong and could be very influential…
“The future of our country demands all professionals to ensure good governance through enhancing management and accountability and ultimately reduce corruption and thus implicitly address poverty.
“I, therefore, encourage that the three entities ensure that this agreement is sustained into the foreseeable future and I know this will set a pace for other stakeholders in birthing similar relationships.”
