Financial Reporting Council of Nigeria (FRC), the Securities and Exchange Commission (SEC), and other financial stakeholders have called for stronger ethical governance among company boards as the nation faces multiple economic and institutional disruptions.....KINDLY READ THE FULL STORY HERE▶

Speaking at the 55th Annual Accountants’ Conference organized by the Institute of Chartered Accountants of Nigeria (ICAN) in Abuja, the Executive Secretary of the FRC, Dr. Rabiu Olowo, said the country’s economic progress depends largely on the ethical conduct of leaders at the board level.

Olowo, who was represented by Mr. Titus Osawe, the council’s Coordinating Director of Corporate Governance, said weak ethical leadership has been one of the major causes of poor corporate performance and economic instability in Nigeria.

“Ethical leadership is the foundation of any strong economy,” he said. “When board members and executives fail to uphold integrity and transparency, the result is loss of investor confidence, weak institutions, and slow development.”

Call for Reforms

Olowo noted that the FRC, in collaboration with the SEC and other agencies, is working to review Nigeria’s corporate governance codes to strengthen accountability and transparency in both the public and private sectors.

He said the council is ready to sanction any company that violates existing corporate governance laws or manipulates financial reports. According to him, new codes will also be introduced for nonprofit organizations and public institutions to curb misuse of funds and promote responsible management.

The SEC added that stronger collaboration between boards and management is essential to improve trust and efficiency in the business environment. The agency said it is developing new training programs for directors and executives on ethics, financial disclosure, and regulatory compliance.

Stakeholders’ Reactions

Participants at the conference, including representatives from civil society organizations and the private sector, welcomed the push for reform but urged regulators to balance enforcement with support. Some business owners expressed concern that recent levies under the FRC Amendment Act 2023 could burden smaller firms.

The government recently suspended implementation of the annual dues to allow for stakeholder review after private sector groups raised objections. Officials say the review will help prevent overlap and ensure fairness.

Despite the concerns, experts insist that governance reform cannot be delayed. They say many Nigerian companies have suffered collapses due to poor oversight, weak internal controls, and unethical decisions at the top.

“Every corporate scandal starts with a decision made in the boardroom,” said Mrs. Yetunde Alabi, a governance consultant. “Ethical boards create strong institutions, and strong institutions create stable economies.”

Broader Economic Challenges

Nigeria continues to face multiple disruptions, including high inflation, foreign exchange volatility, and declining investor confidence. Analysts say these pressures have exposed deep weaknesses in corporate and public governance structures.

Olowo said addressing these issues requires honesty and discipline from those in leadership. He emphasized that adopting strong governance practices would not only improve financial reporting but also boost investor trust and attract foreign capital.

The FRC also plans to increase engagement with professional bodies like ICAN and the Chartered Institute of Bankers to promote self-regulation and peer accountability.

Path Forward

Regulators and industry leaders agree that stronger ethical standards can help Nigeria recover faster from economic shocks. The FRC urged boards to act responsibly, publish transparent financial statements, and strengthen oversight of management decisions.

“Our goal is to restore public confidence,” Olowo said. “Every director and every board member has a duty to protect shareholders and uphold the integrity of our economy.”

Experts believe that if Nigeria’s corporate sector embraces accountability and transparency, the nation could see better investor inflows, reduced corruption, and long-term economic stability.

For now, the message from regulators is clear: good governance is not optional — it is the key to Nigeria’s future.