NCC Prepares Revised Corporate Governance Code, Emphasizes Sustainability Reporting

NCC Prepares Revised Corporate Governance Code, Emphasizes Sustainability Reporting

In a move aimed at aligning Nigeria’s telecommunications sector with global standards, the Nigerian Communications Commission (NCC) is set to introduce a revised corporate governance code.

The Nigerian Communications Commission (NCC) is taking significant strides to enhance corporate governance and promote sustainability within the telecommunications sector. The commission is preparing to introduce a revised corporate governance code that will mandate sustainability reporting for telecom operators.

This move aligns with global trends, as sustainability has become increasingly important for businesses across industries. By requiring telecom operators to disclose information about their environmental, social, and governance performance, the NCC aims to increase transparency and accountability within the sector.

According to the Executive Vice Chairman of the NCC, Dr. Aminu Maida, this initiative is part of the commission’s efforts to promote greater transparency and accountability within the industry.

Maida noted that sustainability reporting involves organizations disclosing information about their environmental, social, and governance (ESG) performance, providing stakeholders with insights into how telecom operators manage risks and opportunities related to sustainability.

During his address at the 2024 Annual Corporate Governance Conference in Lagos, Dr. Maida highlighted the importance of sustainability in corporate governance, noting that it is no longer optional but essential for long-term success. He presented findings from a comprehensive NCC analysis that revealed a strong correlation between effective governance and regulatory compliance, emphasizing that good governance is not just a regulatory obligation but a strategic necessity.

It is to be recall, last year the telecom operators in Nigeria rejected the Corporate Governance provision by the Nigerian Communications Commission (NCC) on the repatriation of funds.

The operators during a public inquiry on the draft guidelines voiced their displeasure on the provision that licensees must obtain written approval from the telecom regulator before they can repatriate funds.

According to IHS Nigeria, ATC Nigeria, and Airtel Nigeria, the provision would discourage investments even as it contradicts existing laws on the repatriation of funds by foreign companies operating in Nigeria.

The revised corporate governance code, according to NCC, will include several key components, including adaptability to the evolving digital landscape, robust data privacy and security measures, and a focus on ethical conduct and compliance. Dr. Maida warned that data breaches could have dire consequences for both individual companies and the sector as a whole, emphasizing the need for comprehensive policies and protocols to protect sensitive data.

Beyond the revised code, the NCC is also taking steps to address other challenges facing the telecommunications sector. Dr. Maida acknowledged the increasing problem of fraud in mobile financial transactions and announced the commission’s collaboration with the Central Bank of Nigeria (CBN) to develop a robust framework to combat this issue.

With the sector’s rapid growth and increasing reliance on mobile financial services, it is imperative to have strong measures in place to protect consumers and maintain the integrity of the industry, NCC Boss noted that these efforts will strengthen corporate governance and combat fraud are crucial steps towards ensuring the sustainable development and success of Nigeria’s telecommunications sector.