Corporate governance – KPMG NG

Corporate Governance: The 2018 Nigerian Code of Corporate Governance
On January 15, 2019, the Financial Reporting Council (FRC) of Nigeria introduced the Nigerian Code of Corporate Governance, aimed at fostering corporate governance best practices across Nigerian companies. The Code outlines a set of key principles designed to institutionalize transparency, accountability, and ethical business practices, essential for the sustainable growth of enterprises in Nigeria.
Corporate governance is a key driver of business sustainability, as recognized by KPMG. Companies that align with sound corporate governance practices are better positioned to establish a solid framework of processes and attitudes that enhance their value, protect their reputation, and ensure long-term success. This alignment also builds trust among investors, stakeholders, and regulators, promoting a stable and resilient business environment.
However, implementing the 2018 Nigerian Code of Corporate Governance comes with its challenges, especially for companies that have not previously been subject to corporate governance regulations. In Nigeria, corporate governance practices are still in the developmental phase, and many organizations may face difficulties in adapting to the new standards. This is particularly true for companies that have yet to establish robust governance structures or practices. For them, the transition may require significant changes to their operations, management structure, and reporting processes.
To assist companies in navigating these changes, KPMG has provided an interpretative overview of the Code’s key provisions. This guide explains the main requirements of the Code and outlines the next steps for companies to comply with these principles. Adopting the Code is a step toward fostering a more transparent and accountable business culture in Nigeria, ensuring that companies remain competitive and resilient in a rapidly evolving global market.