Guidelines

The Financial Reporting Council of Nigeria issued the Nigerian Code of Corporate Governance (NCCG) in 2018, replacing all existing sectorial Codes of Corporate Governance in Nigeria. This code mandates that public companies comply with the provisions of the NCCG and the SEC Corporate Governance Guidelines (SCGG).

• Comprehensive Standards: The NCCG establishes a robust framework covering various aspects of corporate governance. It sets stringent standards for transparency, accountability, and ethics.
• Compliance: Public companies are legally required to adhere to the NCCG. Non-compliance can result in fines and other sanctions.
• Reporting Template (FORM 01): Download the reporting template (FORM 01) here to ensure your company reports compliance accurately.

To address challenges such as pollution, climate change, and poverty in the Nigerian Capital Market, the Securities and Exchange Commission has adopted sustainable finance principles.

• Environmental Stewardship: These principles aim to achieve economic growth while protecting the environment. They encourage entities to embed Environmental, Social, and Governance (ESG) considerations into their operations.
• Social Development: Sustainable finance promotes social development by financing priority sectors and promoting human rights and financial inclusion.
• Gender Equality: Emphasis is placed on gender equality and transparency in reporting.
• SEC Guidelines on Sustainability: Regulated entities must also adopt SEC guidelines on sustainability.

We are committed to fostering a transparent, sustainable, and responsible financial ecosystem in Nigeria. If you have any questions or need further assistance regarding these guidelines, please don't hesitate to contact us.

This document provides essential guidance on adhering to Sections 60 to 63 of the Investments and Securities Act 2007. These sections outline specific obligations for public companies regarding the reporting and auditing of their internal control systems.

Key Points:

• Certification in Annual Reports: Public companies must include a certification related to their internal control systems in their annual or periodic reports.
• Directors' Duties: The document elaborates on the responsibilities of directors concerning internal controls within public companies.
• Management's Assessment: It outlines the requirement for management to annually assess and report on the company's internal control over financial reporting.
• Auditor Responsibilities: The document clarifies the duty of auditors in reporting on the internal controls of public companies, including considerations of auditor independence.
• Material Weaknesses: Procedures for identifying and reporting material weaknesses in internal control over financial reporting are detailed.
• Evaluation Methods: The document may provide guidance on methods used for evaluating internal controls.
• Report Location: It specifies where the internal control report should be placed within the annual financial statements.
• Auditor Registration: This section likely addresses the registration requirements for auditors of public companies.

In summary, this document serves as a comprehensive guide for public companies to ensure compliance with Sections 60 to 63 of the Investments and Securities Act 2007, focusing on the reporting and auditing of internal control systems in accordance with regulatory requirements.