Nigeria's Corporate Governance Rating System (CGRS) has announced that 25 companies successfully passed its rating test joining the eight firms that retained their rating from the CGRS pilot in 2014. This brought the total number of companies that reached the required pass mark of 70% to 33 while a further 87 companies were at various stages of completion of the rating process.

The CGRS was developed by the Nigerian Stock Exchange (NSE), in partnership with the Convention on Business Integrity (CBi). It 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 Nigerian Stock Exchange’s premium board. The rating system aims to improve the corporate governance standards of companies of Nigerian listed companies and enhance the international standing of its corporate sector.

The rating process comprised 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. CGRS announced that 435 directors had passed their certification test. Issues that companies were measured on, and directors needed to show awareness of, included ethics and anti-corruption; shareholder and stakeholder rights and board responsibilities.

Soji Apampa, chief executive of CBi said: “The success rate and increased participation in the CGRS initiative is a testament to the rising acclaim that corporate governance is receiving in corporate Nigeria. It is important to celebrate companies and directors who are leading the renewed charge whilst encouraging others to participate. We continue to celebrate companies where we notice that corporate governance is evolving nicely."

Meanwhile, an announcement on the Financial Reporting Council of Nigeria's website has confirmed last week's media reports that a technical committee has been set up to review the national codes of corporate governance which were suspended last year.

The committee was launched by the FRC's chairman, Adedotun Sulaiman, and will be chaired by Muhammad Ahmad.  Ahmad was formerly the director-general and chief executive of Nigeria's National Pension Commission. The FRC said that under his leadership the pension industry in Nigeria grew from nothing to an asset base of N4.7 trillion under Management.

Following its review of the code and public comment on it, the committee has been asked by the FRC to develop and recommend revisions.