33 Companies, 435 Directors pass CGRS Rating
LAGOS, 22nd January 2018. The Steering Board of the Corporate Governance Rating System (CGRS) is pleased to announce that 25 companies have successfully passed its rating test having scored the required pass mark of 70% whilst there are 87 others are at various stages of completion of the process. These 25 successful companies join 8 companies that retained their rating from the CGRS pilot in 2014, bringing the total number of companies rated as of today to 33. The board also congratulates the 435 directors who have passed their certification test. Presentation of awards and certificates to Chairs of companies and directors being celebrated will hold in February 2018 (event details to be announced later).
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 Nigerian Stock Exchange’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% and above will be accorded the CGRS certification mark celebrating the degree to which they have evolved the quality of their corporate governance.
According to the Chairman of the Steering Board and Executive Director, Regulation, NSE, Ms. Tinuade Awe, “the period between 2000 and 2010 were difficult years for business around the world, littered with major corporate failures due to corruption and poor corporate governance, as well as financial crises that shook many economies. Companies have since then been evolving their ability to improve board structure and responsibility; business ethics and anti-corruption; transparency and disclosure; internal and external audit and control; and, better protect stakeholder and shareholder rights. Nigerian companies have not been left out of this evolution where better business leadership and performance is expected to lead to improvements and growth in the Nigerian economy as a whole.” Mr. Soji Apampa, Chief Executive Officer, The Convention on Business Integrity (CBi) that partnered with the NSE to design, pilot, roll-out and manage the initiative, adds, “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.”
According to Mr. Oscar Onyema, OON, CEO of the Nigerian Stock Exchange, “As we make surefooted steps to globalise our market, the CGRS rating will bolster the confidence to invest in our market 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.”
The members of the CGRS Steering Board are Ms. Tinuade Awe of the NSE, Ms. Olubukanla Rufai representing the Securities & Exchange Commission, SEC, Mr. Wole Famurewa of CNBC Africa, Ms. Vivien Shobo of Agusto & Co., Mr Soji Apampa, of The Convention on Business Integrity and Ms. Cynthia Akpomudiare, Project Director, CGRS.
Please visit https://www.cgrsng.com/ratings-process-methodology/ratings-results/ for the list of successful companies and directors.
You can obtain a copy of the CGRS methodology here https://www.cgrsng.com/ratings-process-methodology/methodology/the-cgrs-methodology/
The Convention on Business Integrity (CBi), a company limited by guarantee, was established in 1997 with the aim of promoting ethical business practices, transparency and fair competition in the private and public sectors. Its mission is to empower people, their transactions, systems and institutions against corruption by intervening to minimize risk of deviance from acceptable benchmarks, through the wide publication of ratings and rankings performed on such entities, enabling more transparent, consistent and predictable transactions that people can observe, affect and benefit from.
About The NSE
The Nigerian Stock Exchange, a company limited by guarantee, services the largest economy in Africa and is championing the development of Africa’s financial markets. The Exchange offers listing and trading services, licensing services, market data solutions, ancillary technology services, and more. The Nigerian Stock Exchange continues to evolve to meet the needs of its valued customers, and to achieve the highest level of competitiveness. It is an open, professional and vibrant exchange, and the Entrepreneurial Growth hub of Africa. The Nigerian Stock Exchange aspires to be Africa’s foremost securities exchange, connecting Nigeria, with the rest of Africa and the world.
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