THE Nigerian Stock Exchange (NSE) has identified weak corporate governance as the major factor responsible for many corporate failures in Africa. Speaking at the 19th yearly ASEA conference in Johannesburg Chief Executive Officer of NSE, Oscar Onyema Onyema stressed the need for securities exchanges to create strong platform through which the exchanges can influence and promote sustainable business practices.
He added that the securities exchanges must increase their contribution and participation in developing national codes of corporate governance, by setting strong listing and maintenance requirements, and ensuring adequate disclosure of listed companies’ corporate governance arrangements.
Onyema said:“Weak corporate governance is often found responsible for many of the corporate failures in Africa. However, as securities exchanges, we operate powerful platforms through which we can influence and promote sustainable business practices.
“Accordingly, we must increase our contribution and participation in developing our national codes of corporate governance, by setting strong listing and maintenance requirements, and ensuring adequate disclosure of listed companies’ corporate governance arrangements. Africa is becoming known as the continent that leapfrogs traditional stages of growth or development.
“We have seen this in the telecommunications industry where despite insurmountable challenges with communications infrastructure, the impact of mobile phone technology in Africa has been phenomenal, and is now revolutionizing many other sectors of our economy.”
