Dr. Ernest Ndukwe, the former executive vice chairman, Nigeria Communications Commission has identified non adherence to the principles of Corporate Governance as the pest eating deep into the telecomm sector in the country, Nigeria CommunicationsWeek can report.
Speaking at a-day stakeholders’ management forum organized by NCC in Lagos recently, Ndukwe listed transparency, accountability to stakeholders, operating under the onus of the law, making informed disclosure, risk management and ensuring competitiveness as paramount principles of the corporate governance the operators must leave up to ease avoid suspicions among customers and dearth of companies in the industry.
He said that investigations have shown that dearth of telecomm companies was aggravated by the withdrawal of their major financiers like banks following the inability of the affected companies to marry technology advancement and institutional management.
“Sub-optimal corporate governance complicates the work of the regulator,” Ndukwe disclosed, stressing the need for the operators to, “openly admit to customers of shortcoming and stating measures being taken to correct same, which is critical for transparency and sustenance of corporate governance”.
According to the former EVC, investigations into corporate governance scandals proved that lack of transparency, deliberate accounting fraud, weak board oversight and failure of internal controls are significant shortcomings inherent among some companies in the industry.
Mrs. Omobola Johnson, minister of Communications Technology, who was represented by Engr. Ngozi Ogujiofor, the deputy director, Telecoms and Postal Services, in the ministry described the forum as a giant step to drive the sector to an enviable height.
She maintained adherence to the doctrine of corporate governance coupled with timely remittance of taxes will resonant confidence of investors in the sector, and assist the government in meeting up with the challenges that bedevil the industry.
According to the Minister, new researches revealed that $2.1 trillion investment will be recorded in the sector this year and expected to reach $2.7 trillion in 2017.
“Investors will continue to fuel opportunities in the sector, hence operators are operating under the corporate governance principles, not drifting from the laws and give respect to the customers,” she advised.
Earlier, Dr. Eugene Juwah, the executive vice chairman, NCC, represented by Chief Okechukwu Itanyi, executive commissioner, Stakeholders’ Management, NCC, noted that the forum was borne out of NCC’s desire to sustain growth, eliminate squabbles and dearth of companies in the sector.
He said that submissions made at the forum will assist NCC in formulating Corporate Governance Guide in the industry, adding that telecomm landscape has changed over the last decade.
“The information age is no longer futuristic, but here with us. In essence, NCC is seeking ways to shape the behavioural procedures on which companies in the sector ride on. Is going to be a structure aimed at sustaining growth,” Juwah said.
According to him, the industry plays need not only improve on their infrastructural baseline, however, skilled and motivated manpower is also key for effective growth.
