The Financial Reporting Council of Nigeria (FRCN) on Monday 17 October 2016 issued the Unified National Codes of Corporate Governance for private sector, not-for-profit organisations and the public sector. According to the FRCN, the Codes were introduced in accordance with Section 50 of the FRC Act, 2011, which requires the Directorate of Corporate Governance of the FRCN to develop principles and practices of Corporate Governance applicable in Nigeria.
Key areas that will be impacted by the Codes include the structure, composition and function of the board or equivalent body; risk management and audit; auditor rotation and joint audits. The Codes also require preparation of financial statements by not-for-profit entities including religious organisations.
The effective date of the Codes for private sector and not-for-profit organisations is 17 October 2016. For the public sector, the Codes will not be applicable until an Executive Directive has been secured from the Federal Government of Nigeria.
For the private sector, the Codes are mandatory and applicable to entities that render operational returns rather than just financial returns to designated regulators. In the case of not-for-profit organisations, they are required to 'comply or justify non compliance".
You can obtain copies of the Codes here
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.