Corporate governance policy essential for market growth - NSE

Operation oflisted companies on the Nigerian Stock Exchange (NSE) based on a sound corporate governance policy is essential for the growth and development of the stock market in the face of the challenging times in the market, the NSE has said.The NSE said the bid to shore up investors confidence on the capital market has further affirmed its management resolve to ensure that quoted companies employ the international best practice in their daily activities in the equities market.The Chief Executive officer of the NSE, Mr. Oscar Onyema made this declaration recently during a courtesy call by the Institute of Directors (IoD) Nigeria to the exchange, stating that situation in the market now necessitate sustainable growth of the nation's capital market.The issue of dearth of corporate governance policy led to the crash of the stock market in 2008 even as the banking sector went comatose due to the rise in the non performing loans whose figure was put at over N2.1 trillion.Onyema assured the institute that the Exchange identified with the vision of the institute and would collaborate with it on mutually beneficial areas of interest to both institutions.The President/Chairman of Council of the institute, Architect Thomas Awagu, who led representatives of IoD Nigeria Governing Council on the courtesy visit promised to partner with the Exchange in the campaign for corporate governance and best practices in workplace for all quoted companies.Awagu noted that it was imperative that stakeholders in Nigerian companies fully embrace corporate governance with particular focus on integrity, accountability, transparency, self-regulation and effective internal control systems.'We salute you and identify with your commitment to grow and develop The Exchange to enviable heights,' Awagu said, promising that the institute would be there to assist him to achieve his vision for The Exchange,' he said.SEC had said recently that, having a functioning corporate governance policy in an economy would positively help drive investment even as investors confidence would be galvanised in the stock market.Also the commission said that with a sound corporate governance as a working tool among going concern, the much needed foreign direct investment will be flowing freely into the country.The Director General of the commission, Ms Arunma Oteh said there was need for the efficient allocation of the huge fund in the capital market, noting that without viable corporate governance in place to regulate businesses, the economy and especially the equities market would be worst for it.
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