Stock Exchange to Start Corporate Governance Ranking

Photo L-R:  Otunba Olutola Senbore, Chairman, FCMB Plc; Oscar Onyema, NSE’s CEO; Ladi Balogun, GMD/CEO, FCMB Plc; and Olusegun Odubogun, Non-Executive Director at FCMB Plc at the Facts Behind the Listings of FCMB Group Plc at the Exchange recently.

The Nigerian Stock Exchange (NSE) at the weekend disclosed that it had entered into a partnership with the Convention on Business Integrity (CBi) to provide a steady flow of data which will be used to develop a Corporate Governance Rating/Ranking System (CGRS) for listed companies in the country.

The NSE also said it expected to develop a Corporate Governance Index that would be tradable.

Oscar Onyema, the Chief Executive Officer of the NSE, revealed this in a speech presented at the 1st Annual Christopher Kolade Lecture on Business Integrity, held in Lagos.

According to Mr. Onyema, in implementing the initiative, the NSE intended to start with 10 pilot companies expected to volunteer to be rated with the CGRS criteria. He explained that the companies would have “first movers’ advantages as they would be celebrated and showcased at every forum and road shows.” This he anticipated would be possible by the end of 2013, adding that by next year, all other companies listed on the NSE would be rated using the CGRS.

Onyema, whose speech was read by the General Manager/Head, Corporate Division, NSE, Mr. Bola Adeeko, explained that “the NSE believes that companies should not only strive to maintain their listing status by adhering and discharging their post-listing obligations to the NSE and investors, but also practice sound corporate governance ethics.”

Meanwhile, the management of the First City Monument Bank Plc (FCMB) recently presented its ‘Facts Behind the Listings of FCMB Group Plc’ at the Exchange.