Following series of consultations with stakeholders in the telecommunications industry by the Nigerian Communications Commission, NCC, between 2012 and 2013 on corporate governance for the industry the NCC has launched the Corporate Governance Code for telecommunications service providers operating in the country.
Speaking at the official launch/unveiling of the code in Lagos, the Executive Vice chairman of the NCC, Dr Eugene Juwah, said this became necessary following the increasing significance of corporate governance beyond the capital markets, where according to him there is enforcement through listing rules and compliance with best practices.
Juwah however emphasised the commission’s determination to promoting good corporate governance for the industry since shareholders and stakeholders are placing higher demand on companies to demonstrate these principles.
He said that the recognized corporate governance principles of accountancy, responsibility, transparency, integrity and ethical conduct, independence, etc., are important for all types of companies whether large or small, operating within the telecommunications milieu since good corporate governance is not determined by the size or type of business affiliation.
This he added further makes it imperative for operators to align and uphold a code of corporate governance which is specific to their industry because of the “combined factors of the strategic importance of telecommunications and the unprecedented growth of the sector (Over 130 million mobile subscribers) with extensive reach across all social and demographic groups in the Nigerian economy”.
Giving her ministerial address on the topic Corporate Governance as a system of promoting transparency and accountability at the event, the minister of communications technology, Dr (Mrs) Omobola Johnson “The objective of the system is to ensure fairness, transparency and accountability and also to ensure that corporate decisions are made with the best interest of the company and its stakeholders in mind”.
The minister who was represented by Director, Telecoms Postal services of the ministry, Engr. John Ayodele, said that by working with the stakeholders with key interests by putting in place a framework that adequately contains minimum best practices. There however should be periodic reviews and consultations.
She added further that the task before the NCC will be to develop an effective monitoring team with allocated responsibilities for supervision, implementation and enforcement among different operators in a clearly defined way and that at the stipulated time questions will be asked.
She therefore commended the commission for instituting the code as a way to improving corporate behaviour in the telecommunications industry especially now that the industry is undergoing restructuring, since Good Corporate governance will promote better investment and better investment climate towards achieving government policies of broadband deployment.