NCC Pushes Up Corporate Governance Practice in Telecom Sector

Nigeria Communication Commission (NCC) has expanded its tentacles in search of ways to improve corporate governance in the telecommunications sector in Nigeria.

Dr. Eugene Juwah, executive vice chairman (NCC) at a forum to set up with the regulatory framework noted that changes in the telecommunications landscape over the last decade necessitated the setting up of acceptable corporate governance template for the industry players.

He added that the NCC is doing all it can to ensure a level playing field is articulated for them.

According to him, although the code governing the practice world over take several dimensions, some are generic in scope while others are drawn up for specific groups of companies as a sector-specific driven or designed to address specific aspects of corporate governance. He listed highlighted that the platform shall address issues like board practice or transparency and disclosure standards.

Juwah said that  “Example could be seen in the banking, insurance and pension funds sub-sector of the financial services industry in Nigeria where they have adopted their respective Codes of corporate governance following their respective Codes following the banking sector consolidation in 2006.

“While national codes of corporate governance are typically focused on country-specific issues and are aimed at improving and guiding governance practices within a country’s specific legal environment and business context, sector-specific corporate governance codes on the other hand address the specific peculiarities of the affected sector, like the telecommunications that are typically dealt with under national or broadly-aimed codes,” he said.

Juwah represented at the occasion by Mr. Okechukwu Itanyi, a commissioner noted that sector-specific Codes have become increasingly more beneficial in those areas where private unlisted companies operate whether as a predominant majority or not.     

He added that NCC had adopted practical steps towards achieving the goal by setting up Telecommunications Sector Corporate Governance Working Group (CGWG), inaugurated on October 24, 2012, with members drawn from the stakeholders in the industry.

The NCC boss said that part of the group's terms of reference was to draft a code of corporate governance for the operators in the telecommunication industry.

In his remarks, Mr Fabian Ajogwu, chairman of the group, maintained that it was constituted to understudy the needs of the industry and come up with a code of corporate governance, stressing that the code of corporate governance would regulate and ensure best practices by the operators of the telecommunication industry.

On his part, Dr. Pascal Dozie, chairman, MTN Nigeria decried that tall important issues is being neglected in some companies, especially with more companies operating in informal sector in Nigeria. As a result, he said most companies are suffering for the negligence of leaders.

He made case for strict compliance of companies to the principles of Companies and Allied Matters (CAMA) Act which showcased corporate sovereignty under the Nigerian law.