Corporate governance

The Financial Reporting Council (FRC) of Nigeria recently released the Nigerian Code of Corporate Governance (‘the Code") on January 15, 2019. The Code highlights key principles that seeks to institutionalise corporate governance best practices in Nigerian companies.

KPMG recognises that good corporate governance is a key driver in the establishment of sustainable enterprise. Alignment with leading corporate governance practices will guide companies in establishing a framework of processes and attitudes that increases their value, builds their reputation and ensures their long term prosperity.

Considering the developing awareness and relatively low institutionalisation of leading governance practices in Nigeria, the implementation of the Code may be challenging for those who have not previously had to comply with any corporate governance codes. Whereas, implementation of the principles should be relatively easier for companies that have previously been subject to the provisions of sectoral codes.

In this newsletter, we have provided an interpretative overview of the key provisions in the Code and the key implications for board and key stakeholders of the users of the Code. We have also made an attempt to identify key next steps for those to whom the Code applies and others who choose to adopt its principles.

Click to download and read more on the 2018 Nigerian Code of Corporate Governance.

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KPMG Nigeria Advisory professionals work with you to cut through the complexities of today’s rapidly changing marketplace. We leverage the knowledge and skills across our global network of firms to develop practical recommendations designed to help you work smarter, grow faster and compete stronger.

We are trusted advisors to the world’s organizations. They choose us because we are known for our talented people, technical expertise, deep industry insights and our ability to get the job done.

KPMG offers a full range of corporate governance services. Corporate governance is a cornerstone of sustainable business development and attracts growing attention from regulators and investors. By allowing companies to respond properly to external challenges, good corporate governance enhances the confidence of the market players and is a key factor for investment decisions, a fact confirmed by many independent studies.

Governance, Regulatory & Compliance

Governance, Regulatory and Compliance continues to be complex business challenge. As new laws and regulations are introduced, their requirements challenge boards to greater levels of transparency, objectivity and professionalism. Increased accountability and potential exposure to liability means directors need to ensure that corporate governance standards are adhered to and robust compliance management systems are in place.

KPMG member firms can assist directors and management to identify the applicable laws and regulations to better understand the regulatory environment. Our approach combines an analysis of the legal framework together with an assessment of the systems and processes which can help to ensure compliance and sound corporate governance.

Our approach is to support our member firms’ clients in meeting the Governance, Regulatory and Compliance challenge by offering the following services:

Board training, i.e. director responsibilities, obligations and ‘better practice’ governance requirements

Governance framework design

Board and Audit Committee assessments

Regulatory code impact diagnostic

Sarbanes-Oxley Advisory Services (for SEC registrants)

EU 8th Directive Advisory Services

• J-SOX’ Advisory Services.

Our firms’ multidisciplinary teams have advised clients on how best to meet the corporate governance, regulatory and compliance challenge. Our professionals have in-depth knowledge of corporate governance developments both locally and internationally. We combine the process and system benchmarking knowledge and experience with organizational knowledge.

There is a strong business case for corporate governance and regulatory compliance. Sound corporate governance practices can protect directors from potential personal liability and protect the company from reputational harm.

There are financial penalties for non-compliance with certain laws and regulations. Robust regulatory and compliance structures can help to ensure companies are not subject to potential penalties.

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