The Nigerian government has suspended a controversial corporate governance code issued by the country’s Financial Reporting Council of Nigeria, FRC.
The Minister for Industry, Trade and Investment, Okechuckwu Enelamah, made the disclosure in a statement on Monday, after President Muhammadu Buhari’s sack of the Executive Secretary of FRC, Jim Obazee.
Mr. Obazee was fired a few days after Pastor Enoch Adeboye stepped down as the Nigerian overseer of Redeemed Christian Church of God in compliance with the suspended FRC governance code for not-for-profit organisations, including civil society and religious organisations.
Adeboye had on Saturday complained about the government’s interest in Church activities.
In the five paragraphs statement issued by the minister’s Strategic Communication Adviser, Constance Ikokwu, the minister said the code was suspended in order to carry out a detailed review of its application.
The review, according to the statement, would now involve extensive consultations with stakeholders upon the reconstitution of the board of the FRC.
The statement quoted the minister to have said that government remains committed to restoring and enhancing market confidence and improving the ease of doing business in the country.
The statement reads in part, “The Corporate Governance Code issued by the Financial Reporting Council of Nigeria has been suspended, pending a detailed review, extensive consultation with stakeholders and reconstitution of the board of the FRC.
“Government remains committed to restoring and enhancing market confidence and improving the Ease of Doing Business in Nigeria.
“Government is committed to strengthening FRC and enhancing its capacity to fulfill its core mandate.”
The FRC is one of the parastatals under the supervision of the Ministry of Industry, Trade and Investment and it is responsible for setting and promoting compliance with standards for accounting, financial reporting and auditing in Nigeria.
It also regulates the practices of professionals involved in financial reporting and promotes good practices in financial reporting and corporate governance in Nigeria.