Nigeria: Oil Marketers Pledge Compliance to New Corporate Governance Code

22 October 2019

Marketers of petroleum products in the country have agreed to work towards improving industry reputation as captured in the new Nigerian Corporate Governance Code 2018.

Such areas include health, safety, environment & quality (HSEQ), corporate governance, customer satisfaction at the station forecourts including accurate dispensing of product.

The markets under the umbrella of Major Oil Marketers Association of Nigeria (MOMAN) stated this recently during their 2019 CEOs' strategic retreat/workshop facilitated by Junios Consulting, an indigenous management firm, with emphasis on the corporate governance code.

Speaking at the event, the Executive Secretary of MOMAN, Mr. Clement Isong, stated that good corporate governance practices was at the core of good business performance impacting all stakeholders including shareholders, employees, service providers, transporters, dealers and ultimately, the Nigerian customer.

Isong, reminded participants that the image of the downstream sector of the oil and gas industry had, over the years, suffered considerable damage as a result of some underhand practices, particularly the penchant of some petrol station dealers for cheating at the pumps.

He equally condemned the unwillingness of some oil product transporters to present fit and proper vehicles and trained drivers for the movement of hazardous cargo such as petroleum products.

He also informed participants of their CEOs' desire for a serious and sustainable relaunch of corporate governance mechanisms so as to adequately tackle challenges in the industry and boost stakeholder returns.

Also speaking at the event, the Chairman of Junios Consulting, Mr. Osifo Segun Akpata, described the speedy adoption of better governance practices in the industry as an imperative for progress.

Akpata, welcomed the launch of the new code, stressing that if compliance with the code's provisions by companies operating in Nigeria was rigorously enforced by the relevant authorities, the corporate space in the country would, in a few years, become very different.

According to him, beyond improving productivity and reducing reputational risks, well-run organisations are an irresistible attraction for foreign and domestic capital.

The consultant also emphasised that resources expended by an organisation in stepping up its corporate governance practices should be seen as an investment.

The participants who were exposed to the provisions of the new code and the practical measures to be taken by companies to ensure compliance, however, committed themselves to working for the entrenchment of the code's principles in their respective companies.

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