The Nigerian Communications Commission (NCC) has unveiled a corporate governance code that will protect the over $25bn worth of assets in the telecommunications sector.
At the formal unveiling in Lagos on Thursday, the NCC noted that the code was a product of consultations among stakeholders, dating back to April 2012.
The commission said stakeholders had agreed that the absence of a common code binding on all telecommunications operators was hindering the growth of the sector.
It, therefore, noted that the code would put something new in the sector and would contribute to the nation’s rebased Gross Domestic Product.
The Executive Vice Chairman, NCC, Dr. Eugene Juwah, said the telecommunications sector was of strategic and high impact significance to the economy at a macro level, and had considerable reach at the micro level.
This, Juwah pointed out, was made up of a wide range of operators with diversity in size, scope of operations, asymmetry qualifications, legal and regulatory requirements, capital market activities as well as local and cross-border relationships.
“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, makes it imperative that operators in this critical sector must uphold a code of corporate governance, which is specific to their industry,” he added.
The NCC boss explained that the corporate governance principles of accountability, responsibility, transparency, integrity and ethical conduct, among others, were important for all types of companies operating in the telecommunications industry.
The requirement for good corporate governance, according to him, does not wane because of the size or type of business affiliations.
“Shareholders and other stakeholders are now placing higher demand on companies to demonstrate these principles. Thus, the NCC is determined to promote corporate governance for the telecommunications industry,” Juwah said.
The Minister of Communications Technology, Mrs. Omobola Johnson, said that the main challenge for corporate governance was to create a system that would hold decision makers accountable, while according proper respect to their positions in the companies.
Represented by a director in the ministry, Mr. John Ayodele, the minister said the key considerations for a successful corporate governance regime typically would consist elements of voluntary commitments and good business practices by the regulated entities.
