By Ajibola Olaide, JKNewsMedia Reporter
THE NIGERIAN Electricity Regulatory Commission has barred individuals from holding directorships in more than two companies within the country’s electricity industry, citing risks of conflict of interest and impaired performance.
This directive was issued in the Commission’s newly released Code of Corporate Governance, dated 30 May.
The regulation, which targets what it calls “multiple directorships,” warns that simultaneous appointments on various boards can compromise a director’s ability to execute responsibilities objectively and without bias.
It further calls on electricity firms and their shareholders to critically assess all board nominees for suitability, particularly in light of their existing obligations.
Before any appointment is made, nominees must disclose all current board memberships.
The Commission stressed that it is the board’s responsibility to evaluate a nominee’s capacity to contribute effectively, weighing any other commitments that may affect their performance.
Serving directors are also required to notify their board, via the chairman, of any prospective external appointments.
Directors currently serving on more than two boards in the Nigerian Electricity Supply Industry must formally disclose these roles.
The Commission’s directive also aims to fortify governance structures by eliminating potential conflicts and reinforcing transparency.
The code also places strong emphasis on ethical conduct.
Directors are expected to steer clear of conflicts of interest, whether arising directly or indirectly from affiliations with other organisations.
This applies not only to present positions but also to any proposed engagements that may compromise impartiality.
