News / Africa

Nigeria Government Fighting Corporate Corruption

President of Nigeria, Goodluck Jonathan, June 8, 2011
President of Nigeria, Goodluck Jonathan, June 8, 2011
TEXT SIZE - +

Nigerian President Goodluck Jonathan says fighting corruption is one of the driving goals of his new administration.

President Jonathan says the fight against corruption "must enlist the overwhelming force of Nigeria's collective determination" to ensure that the country's limited resources are best used for the common good.

As the president assembles his new cabinet, Nigeria's Securities and Exchange Commission is working with business leaders to enforce a revised Code of Corporate Governance to curb corruption and make Nigerian firms more competitive.

The commission's director general, Arunma Otteh, says that will attract more outside investment. "We believe that it is important from the individual company point of view, from a competitiveness point of view to be able to attract investors both local and international. They will have comfort when they know that the company is abiding by the best practice in terms of corporate governance. We also feel that it is a competitive tool for Nigeria as a whole, as we seek as a nation to improve the competitiveness of our country, and ensuring the flagship companies, companies listed on our exchange, are abiding by best practice for us is key," he said.

The managing directors of eight Nigerian banks were last year charged with fraud over illegal loans that threatened to collapse the banking sector and necessitated a $4 billion bailout by the Central Bank.

Otteh says the revised code holds corporate leaders responsible for their conduct. "The companies also have to declare the extent of their compliance to the code and that means there are liabilities for directors for misrepresentations. So in a sense while it is voluntary, there is a mechanism for us to reinforce good corporate governance practice. So it is actually the best of both worlds," he said. "Because when people own an initiative, they tend to take responsibility for that."

Attorney Michael Ellah says the breadth of corruption in Nigeria limits outside investment.

"Because of in many areas of this economy there is a lot of corruption as we all know, so we need to find a way to block this from the corporate culture," Ellah noted.

Harm Ploeger is the finance director for the West Africa branch of the British engineering and construction firm Costain. He says the cost of doing business in a corrupt economy far outweighs what companies will spend to demonstrate their compliance with the new code of conduct.

"[You] can not make the profits sustainably, which means over a large number of years if you do not have any form of corporate governance, I think in the end corporate governance rather keeps you in business than you must see it as a cost," Ploeger stated.

The Nigerian Stock Exchange is also working to reform trading and listing practices after a 60 percent drop in the main stock index between 2008 and 2009. Foreign investment on the exchange last year nearly doubled to more than $2 billion.

You May Like

Algerians Vote in Presidential Election

There were few media reports of protests and clashes around the country, but so far no significant violence More

Sharks More Evolved than Previously Thought

The discovery could “profoundly affect our understanding of evolutionary history” More

Pakistan Military Asked to Protect Polio Workers

Request comes as authorities say a Taliban ban on vaccinations in 2012 and deadly attacks on anti-polio teams have prevented thousands of children from getting inoculated More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Google Buys Drone Companyi
|| 0:00:00
...
 
🔇
X
George Putic
April 15, 2014
In its latest purchase of high-tech companies, Google has acquired a manufacturer of solar-powered drones that can stay in the air almost indefinitely, relaying broadband Internet connection to remote areas. It is seen as yet another step in the U.S. based Web giant’s bid to bring Internet to the whole world. VOA’s George Putic reports.
Video

Video Google Buys Drone Company

In its latest purchase of high-tech companies, Google has acquired a manufacturer of solar-powered drones that can stay in the air almost indefinitely, relaying broadband Internet connection to remote areas. It is seen as yet another step in the U.S. based Web giant’s bid to bring Internet to the whole world. VOA’s George Putic reports.
Video

Video Ray Bonneville Sings the Blues and More on New CD

Singer/songwriter Ray Bonneville has released a new CD called “Easy Gone” with music that reflects his musical and personal journey from French-speaking Canada to his current home in Austin,Texas. The eclectic artist’s fan base extends from Texas to various parts of North America and Europe. VOA’s Greg Flakus reports from Austin.
Video

Video Millions Labor in Pakistan's Informal Economy

The World Bank says that in Pakistan, roughly 70 percent work in the so-called informal sector, a part of the economy that is unregulated and untaxed. VOA's Sharon Behn reports from Islamabad on how the informal sector impact's the Pakistani economy.
Video

Video Passover Celebrates Liberation from Bondage

Jewish people around the world are celebrating Passover, a commemoration of their liberation from slavery in Egypt more than 3,300 years ago. According to scripture, God helped the Jews, led by Moses, escape bondage in Egypt and cross the Red Sea into the desert. Zlatica Hoke reports that the story of the Jewish Exodus resonates with other people trying to escape slave-like conditions.
Video

Video Police Pursue Hate Crime Charges Against Kansas Shooting Suspect

Prosecutors are sifting through the evidence in the wake of Sunday’s shootings in a suburb of Kansas City, Missouri that left three people dead. A suspect in the shootings taken into custody is a white supremacist. As VOA’s Kane Farabaugh reports, he was well-known to law enforcement agencies and human rights groups alike.
Video

Video In Eastern Ukraine, Pro-unity Activists Emerge from Shadows

Amid the pro-Russian uprisings in eastern Ukraine, there is a large body of activists who support Ukrainian unity and reject Russian intervention. Their activities have remained largely underground, but they are preparing to take on their pro-Moscow opponents, as Henry Ridgwell reports from the eastern city of Donetsk.
Video

Video Basket Maker’s Skills Have World Reach

A prestigious craft show in the U.S. capital offers one-of-a-kind creations by more than 120 artists working in a variety of media. As VOA’s Julie Taboh reports from Washington, one artist lucky enough to be selected says sharing her skills with women overseas is just as significant.
Video

Video UN Report Urges Speedier Action to Avoid Climate Disaster

A new United Nations report says the world must switch from fossil fuels to cleaner energy sources to control the effects of climate change. The Intergovernmental Panel on Climate Change released the report (Sunday) following a meeting of scientists and government representatives in Berlin. The comprehensive review follows two recent IPCC reports that detail the certainty of climate change, its impacts and in this most recent report what to do about it. VOA’s Rosanne Skirble has the details.
AppleAndroid