The Nigerian Communications Commission (NCC) has unveiled plans to issue a revised Corporate Governance Code with a view to updating the 2016 version with primary focus on the introduction of mandatory sustainability reporting for mobile network operators (MNOs) in the country.
The commission’s Executive Vice Chairman, Dr. Aminu Maida, who gave this hint during his address at the 2024 Annual Corporate Governance Conference in Lagos with the theme ‘Corporate Survival and Sustainability: The New Face of Governance’, said the initiative was 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.
According to him, the sustainability reporting involves organisations disclosing information about their ESG performance, and the 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.
The industry expert harped on the importance of sustainability in corporate governance, maintaining that “such practices are no longer optional but essential for the long-term success of telecom companies.”
Maida also presented findings from a comprehensive NCC analysis evaluating corporate governance among telecom operators, which key indicators examined included board composition, diversity, effectiveness, ethical conduct, compliance, risk management, and corporate social responsibility.
The analysis further reflected a strong correlation between effective governance and regulatory compliance, with companies not excelling in governance facing poor financial performance.
