The Nigerian Communication Commission (NCC) has promised the protection of the over $25 billion investment in the telecoms sector under the telecoms corporate governance code for telecoms industry recently launched by the commission.
Speaking at the launch in Lagos, its Executive Vice Chairman (EVC), Dr. Eugene Juwah, said the unveiling of the industry-specific code of corporate governance would help the NCC to enthrone global best practices among the boards of telecoms players, whose actions and inactions have far-reaching effects on the entire telecoms industry.
“The code became necessary to reposition the sector to contribute more to the country’s rebased GDP,” he pointed out.
He said the corporate governance principles of accountability, responsibility, transparency, integrity and ethical conduct, independence among others are important for all types of companies operating in the telecommunications industry whether public or private, large or small.
According to him, “the requirement for good corporate governance does not wane on account of size or type of business affiliations. Shareholders and other stakeholders are now placing higher demand on companies to demonstrate these principles. Thus, NCC is determined to promote corporate governance for the telecommunications industry.”
He spoke on the genesis of the code, recounting that the commission organised the first consultation in April 2012 with the theme ‘corporate governance in the telecommunications industry: compliance with standards, processes and procedures` during which the absence of a common code to which all telecommunications operators should abide was highlighted. In June 2013, the commission organised the second consultation on corporate governance, with the theme ‘enhancing stakeholders’ responsibility’, he added.
Juwah said to address the gap, NCC inaugurated the Corporate Governance Working Group (CGWG) in October 2012, with members drawn from the operating companies, the commission and corporate governors.
“The telecommunications sector is of strategic and high impact significance to the economy at a macro level and has considerable reach at the micro level. He said this is 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,” he said.
The NCC helmsman maintained that 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 made it imperative that operators in this critical sector should uphold a code of corporate governance, which is specific to the industry.
Earlier in her remarks, the Minister of Communications Technology, Dr. Omobola Johnson, represented by the director of postal and telecoms services in the ministry, Mr. John Ayodele, said the main challenge for corporate governance was to create a system that would hold decision makers accountable while according proper respect to their position in the company.
He said that the key considerations for a successful corporate governance regime typically would consist of elements of voluntary commitments and good business practices by the regulated entities.
“The code should be backed up through effective monitoring and enforcement processes, and continuously assessing compliance with the basic principles of this code in line with the best international practices”, he added.
In his address, the chairman of the CGWG, Dr. Fabian Ajogwu said the code became necessary to consolidate on the gains of the telecoms sector.
Ajogwu said the code would help resolve challenges of weak internal controls in organisations, help passive shareholders, avoid conflict of interest, enable effective management information system among others.
In his remarks, the NCC’s executive commissioner, stakeholder management, Okechukwu Itanyi, said the commission was looking at every means to improve on the growth of the sector.
He said the code might become mandatory after two years of depending on the industry situation.
“The code of corporate governance for the telecommunications industry, a copy of which was obtained, aims to promote good corporate governance practices in the industry and would create a credible industry, which every stakeholder can have confidence in as well as foster the growth and development of the industry and larger national economy,” he added.
Leadership Newspaper
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