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The Nigerian Communications Commission (NCC) has highlighted how governance frameworks will not only ensure compliance but also promote innovation, trust, and long-term value in the ecosystem.
Aminu Maida, Executive Vice-Chairman and Chief Executive Officer (EVC/CEO), in his address at the recent 2024 Annual Corporate Governance Conference, in Lagos made this assertion.
The conference was tagged: “Corporate Survival and Sustainability: The New Face of Governance.”
Maida, harped on the significance of corporate governance in organisations, affirming that the concept remains the foundation for success, sustainability of the telecoms industry in Nigeria.
He also disclosed the Commission is about to release its revised corporate governance code by updating the 2016 version with a key focus on the introduction of mandatory sustainability reporting for telecoms operators in the country.
The EVC explained that this initiative aims to align the sector with global Environmental, Social, and Governance (ESG) standards, promoting greater transparency and support sustainable development within Nigeria’s telecoms space.
Dr. Maida also highlighted how sustainability reporting involves organisations to disclose information about their ESG performance.
This practice provides stakeholders—including investors, customers, and regulators—with insights into how telecoms operators manage risks and opportunities related to sustainability.
Key components include reporting on carbon emissions, resource usage, labour practices, community engagement, and data privacy, stated Maida.
He further explained essence of sustainability in corporate governance, noting “such practices are no longer optional but essential for the long-term success of telecoms companies.”
He stated that in today’s fast-evolving world, corporate governance is not just a regulatory requirement—it’s the foundation of the telecom industry’s success and sustainability.
He declared: “As leaders, it’s our responsibility to ensure our governance frameworks are robust, adaptable, and in tune with the changing global landscape.”
Underscoring the significance of good governance in the telecoms sector of Nigeria’s economy, Maida as well presented findings from a comprehensive NCC analysis evaluating corporate governance among telecoms operators in Nigeria.
According to him, the major indicators examined in the survey included Board composition, diversity, effectiveness, ethical conduct, compliance, risk management, and corporate social responsibility.
The analysis, NCC Executive Vice-Chairman stated, indicated a strong correlation between effective governance and regulatory compliance, with companies not excelling in governance facing poor financial performance.
This observation demonstrates that “good governance is not merely a regulatory obligation but a strategic necessity for sustainable business success,” Maida asserted.
Key elements of future of corporate governance in telecoms industry
Besides expatiating on the correlation between effective governance and regulatory compliance in the industry, Dr. Maida further enumerated the essential components shaping the future of corporate governance in the telecoms sector.
According to him, these include
Adaptability. As digital transformation and emerging technologies redefine the landscape, governance frameworks must adapt while ensuring accountability, he noted.
Data Privacy and Security: With telecom operators handling vast amounts of sensitive data, robust data protection measures are imperative.
He also warned that “data breaches could have dire consequences for both individual companies and the sector as a whole.”
He equally stressed the need for “governance frameworks” that prioritise data security through comprehensive policies and compliance protocols in the ecosystem.
The EVC/CEO of the telecoms sector regulatory Commission averred: “Corporate governance is not just a regulatory organisation; it is the foundation for the success and sustainability of our industry.”
The Executive Vice-Chairman as well highlighted the impressive growth of Nigeria’s telecommunications industry since its liberalisation in 2001.
He said: “From just 305,000 active phone lines in 2001, we now boast over 150 million active telecoms subscribers.”
Maida restated the telecoms sector’s significant contributions to the West African country’s Gross Domestic Product (GDP) to include job creation, and economic empowerment for millions of Nigerians.