Nigeria Communication Commission (NCC) has activated the enforcement of Code for Corporate Governance of the telecommunications industry.
The Code of Corporate Governance document provides 15 years tenure limit for directors of public and private telecoms sanctions and ethical issues.
NCC had in 2012, released a voluntary Code of Corporate Governance for the telecommunications sector, but commenced a mandatory implementation phase of the code from November 1, 2016, and decided to engage the stakeholders in a sensitisation workshop in Lagos, where the stakeholders raised their concerns about some areas of the code.
Professor Umar Danbatta, the Executive Vice Chairman of NCC, on the provisions of the Code, said the centrality of telecommunication to all spheres of the nation’s life demanded that “we raise the standards of leadership and management in the sector to sustain the sector’s role as a driver of economic growth.”
The code, now in existence for four years, had earlier been presented to stakeholders in 2016 at an all-inclusive forum, as an instrument which provisions are mandatory.
“Therefore, today’s event marked the commencement of the enforcement of the Code, indicating that NCC has activated the processes for monitoring compliance by sectoral players,” he said.
One of the key items in the Code is that the offices of Chairman and that of the CEO shall not be occupied by one person concurrently in any telecom company in Nigeria. In addition, no one can serve as a director in any telecom company for more than 15 years.
“The significance of today’s event is evident in the presence and participation of the Chairman of NCC Board of Commissioners, Senator Olabiyi Durojaiye; the Executive Commissioner Stakeholder Management, Mr. Sunday Dare; other top management staff of NCC; representatives of Mobile Network Operators; and a broad spectrum of other telecom industry stakeholders,” he said.
Stakeholders were of different views on the 15 years tenure. While some didn’t support the tenure ideas saying the commission might be infringing in the right of private companies, others also that the 15 years tenure should be reduce to allow fair play in the industry that will allow fresh people to come in with new ideas to manage the telecom industry.
In sanctioning of companies that fail to adhere to Code of Corporate Governance document, most stakeholders agreed that the commission should give necessary sanction, some differ on the sanction idea saying,in the place of sanctions the stakeholders should be given proper sensitization.