By Dipo Olowookere
A total of 33 companies listed on the Nigerian Stock Exchange (NSE) have passed the Corporate Governance Rating System (CGRS) rating test.
At a news conference on Monday, Chairman of the Steering Board and Executive Director in charge of Regulation at the NSE, Ms Tinuade Awe, told journalists that 25 firms recently passed the test to join eight companies, which retained their rating from the CGRS pilot in 2014.
Ms Awe disclosed that the 25 companies scored the required pass mark of 70 percent from the rating test conducted.
She noted that about 435 directors have passed their certification test and that by next month, awards and certificates would be presented to the firms and directors.
According to the Executive Director, 87 other firms are now at various stages of completion of the process.
The CGRS was introduced into the Nigerian capital market in 2012 and launched in 2014 after it was successfully piloted with a number of volunteer companies, including those now listed on the NSE’s Premium Board.
The process comprises three segments: an independently verified, self-assessment by the company; a certification of director awareness of their fiduciary duties; and, a corporate integrity assessment where perceptions of actual company behaviour are sought from internal and external stakeholders. Combinations of the three segments with attendant weighted scores are collated and companies with a score of 70 percent and above will be accorded the CGRS certification mark celebrating the degree to which they have evolved the quality of their corporate governance.
Also speaking at the briefing, Chief Executive Officer of the Convention on Business Integrity (CBi), Mr Soji Apampa, stated that his company partnered with the NSE to design, pilot, roll-out and manage the initiative, commended the initiative’s success rate.
“It is important to celebrate companies and directors who are leading the renewed charge while encouraging others to participate.
“We continue to celebrate companies where we notice that corporate governance is evolving nicely,” he said.
On his part, chief executive of NSE, Mr Oscar Onyema, explained that the CGRS rating would bolster the confidence to invest in the nation, especially from international investors.
“Increasingly, our listed companies are meeting their compliance and requirements and we will continue to protect investors in our market through a robust regulatory regime,” Mr Onyema said.
