Lagos, Nigeria. November 17, 2016
– IFC, a member of World Bank Group, and the Securities and Exchange Commission
of Nigeria, are helping to strengthen market integrity with a standardized
Corporate Governance scorecard for public companies. The scorecard will
identify strong performers through enhanced disclosure, strengthen investor
confidence and encourage foreign investments in the country.
In 2014 IFC and SEC partnered to develop
the Nigerian Corporate Governance Scorecard which was launched in November
2015. Following the launch, both institutions have jointly trained various
stakeholders to prepare for implementation. These stakeholders include
Chief Finance Officers, Company Secretaries Audit Committee and Board Chairpersons.
The training sessions generated awareness for the new disclosure requirements
of SEC. These disclosures will be used annually to assess corporate governance
practices of listed companies in the country.
Corporate governance scorecards are quantitative
tools used to measure the level of observance of a code or standard of
corporate governance. The scorecard was developed using indicators from
the SEC code of corporate governance and will assess individual, sectorial
and market-wide level of compliance with standards of best practices.
Munir Gwarzo, Director General, Securities
and Exchange Commission, said, “A key focus of the SEC is to provide regulatory
oversight to ensure public companies comply with best practices in corporate
governance and boost their performance. Having built considerable market
awareness for the scorecard with IFC’s support, we hope that as companies
comply, they will improve their performance and contribute to growth in
the nation’s economy.”
Eme Essien Lore, IFC Country Manager for
Nigeria, said, “IFC works with firms to attract and retain investment
by promoting the adoption of good corporate governance practices and standards.
We have partnered with SEC over the last twoyears, developing the CG Scorecard
and sensitizing stakeholders. We hope that as implementation begins in
January 2017, the trained officials would translate progress made into
ongoing processes that boost performance, attract investments and help
the economy grow.”
Corporate governance refers to the structures
and processes by which companies are directed and controlled. Companies
become more accountable and transparent to investors, which encourages
new investments, boosts economic growth, and provides employment opportunities.
IFC’s Africa Corporate Governance program
is funded by the State Secretariat for Economic Affairs (SECO), Switzerland
. IFC is the implementing partner for the program.
IFC, a member of the World Bank Group, is
the largest global development institution focused on the private sector
in emerging markets. Working with 2,000 businesses worldwide, IFC uses
its six decades of experience to create opportunity where it is needed
most. In financial year 2016, long-term investments in developing countries
rose to nearly US$19 billion, leveraging its capital, expertise and influence
to help the private sector end extreme poverty and boost shared prosperity.
For more information, visit www.ifc.org
SECO is Switzerland’s competence center
for all core issues relating to economic policy. SECO’s economic development
cooperation strives to achieve sustainable growth. Such growth is sustainable
if it creates jobs, helps to increase productivity, to reduce poverty,
inequalities and global risks. For more information, visit www.seco-cooperation.ch.
The Securities and Exchange Commission (SEC),
Nigeria is the apex regulatory institution of the Nigerian capital market
supervised by the Federal Ministry of Finance. The Commission has
evolved over time having started with the establishment of the Capital
Issues Committee in 1962 by the government as an essential arm of the Central
Bank of Nigeria. The Investments & Securities Act (ISA) No. 45 of 1999
was repealed by the ISA No. 25 of 2007 which gives the Commission the powers
to achieve its objectives which include regulating the capital market with
a view to protecting investors and developing the capital market in order
to enhance its allocative efficiency, and pave the way for a private sector
The Act also empowers the Commission with
a board of nine (9) members including the Chairman, the Director General,
three Executive Commissioners, two Non-Executive Commissioners, representatives
of the Federal Ministry of Finance and Central Bank of Nigeria. For more
information, please visit www.sec.gov.ng