NCC to Introduce Revised Governance Code for Sustainable Telecom Practices

Nigerian Communications Commission (NCC) is preparing to issue a revised corporate governance code, updating the 2016 version with a key focus on the introduction of mandatory sustainability reporting for telecom operators, according to Dr. Aminu Maida, executive vice chairman of the commission.

Maida said that the initiative is aimed at aligning the sector with global environmental, social, and governance (ESG) standards, promoting greater transparency and supporting sustainable development within Nigeria’s telecommunications landscape.

He, disclosed this during his address at the 2024 Annual Corporate Governance Conference in Lagos, State, themed “Corporate Survival and Sustainability: The New Face of Governance.”

The sustainability reporting involves organisations disclosing information about their ESG performance.

This practice provides stakeholders—including investors, customers, and regulators—with insights into how telecom operators manage risks and opportunities related to sustainability. Key components include reporting on carbon emissions, resource usage, labour practices, community engagement, and data privacy.

Maida emphasized the importance of sustainability in corporate governance, highlighting that “such practices are no longer optional but essential for the long-term success of telecom companies.”

He presented findings from a comprehensive NCC analysis evaluating corporate governance among telecom operators. Key indicators examined included board composition, diversity, effectiveness, ethical conduct, compliance, risk management, and corporate social responsibility.

The analysis revealed a strong correlation between effective governance and regulatory compliance, with companies not excelling in governance facing poor financial performance.