The Financial Reporting Council of Nigeria (FRC) is targeting the release of the Nigeria Not-For-Profit Governance Code (NNFPGC) within this year, according to Dr. Rabiu Olowo, Executive Secretary/Chief Executive Officer of the FRC. This announcement was made during a recent stakeholder engagement focused on the draft of the code.
Dr. Olowo highlighted the importance of stakeholder feedback at this stage, emphasizing that the code will provide guidelines on board composition, financial management, sustainability practices, stakeholder engagement, and more. These guidelines are designed to enhance trust and integrity in Nigeria’s non-profit sector, which has faced challenges related to corruption and mismanagement.
The Transparency International Index places Nigeria at 154 out of 180 countries with a score of 24/100, reflecting concerns about public confidence in institutions. The NNFPGC aims to address these issues by promoting transparency, accountability, and ethical conduct within the sector.
During the stakeholder engagement, concerns were raised about potential overregulation, a one-size-fits-all approach, and issues related to monitoring and evaluation, as well as the role of independent auditors. In response, Mr. Tolu Odukale from KPMG reassured that the code is designed to be flexible, with specific expectations tailored to different types of organizations to avoid a one-size-fits-all approach.
The FRC is committed to refining the code based on stakeholder input to ensure it meets the needs of Nigeria’s diverse non-profit sector while promoting higher standards of governance and accountability.
News Editor