NSE trains directors of dealing firms over corporate governance

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Nigeria Stock Exchange Chief Executive Officer Oscar Onyema.
Nigeria Stock Exchange Chief Executive Officer Oscar Onyema.

The Nigerian Stock Exchange has said it trained the directors of dealing member firms on corporate governance as part of its efforts to ensure that the nation’s capital market is more transparent.

According to the NSE, the training was aimed at enhancing the directors’ fiduciary duties, uprightness and utmost commitment in directing the affairs of dealing member firms.

In a statement by its Head, Corporate Communication, Nwando Ajene, the NSE said the decision was as a result of the realisation that the operations of organisations were better run where proper structures and processes were in place.

The Head, Legal and Regulation Division, NSE, Ms. Tinu Awe, was quoted as saying that the training was timely in view of the increasing demand on corporate boards to align their businesses or corporate performance with their corporate social responsibilities and increase investor confidence.

She said, “Global best practice has made it imperative for capital market operators to be adequately informed and educated about the importance of corporate governance to enable them to institute high ethical values for the benefit of investors, their stakeholders and the communities in which they operate.”

According to her, the training will, among other things, cover strategies and action plans for corporate governance all aimed at ensuring that dealing member firms are efficiently managed, as the Exchange strives to create a system of transparency and ethical conduct.

The Head, Broker Dealer Regulation, NSE, Mr. Olufemi Shobanjo, added that the training would put the boards of dealing member firms in a better position to make sound and strategic business plans; effectively manage risk and comply with international accounting standards, among other things.

The NSE explained in the statement that its decision to join the United Nations Sustainable Stock Exchanges Initiative last week was as a result of its commitment to creating sustainable value for its stakeholders.

Co-organised by UNCTAD, the United Nations Global Compact, the United Nations Environment Programme’s Finance Initiative and the UN-supported Principles for Responsible Investment, the NSE initiative explores how stock exchanges can work together with investors, regulators and companies to enhance corporate transparency and encourage long-term approaches to investment.