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Oil marketers prepare to comply with corporate governance code

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Members of Major Oil Marketers Association of Nigeria, MOMAN, have adopted measures targeted at complying with the corporate governance of Nigeria’s oil and gas industry.

In a statement sent to Vanguard, MOMAN stated: “At the 2019 CEOs strategy retreat, MOMAN CEOs had agreed to target certain areas in order to improve industry reputation; Health Safety Environment & Quality (HSEQ), corporate governance, customer satisfaction at the station forecourts including accurate dispensing of product.

“On Friday, 11th October 2019, oil marketing majors at the instance of their umbrella body, MOMAN (Major Oil Marketers Association of Nigeria) held a one-day workshop for members on Corporate Governance, with emphasis on the new Nigerian Code of Corporate Governance (2018).

Oil
Cross section of officials during the meeting between the Federal Government and oil marketers at the State House Conference Centre, Abuja.

“Hosted at the premises of MOMAN in Victoria Island, Lagos, the intensive workshop was facilitated by JUNIOS Consulting, an indigenous management consulting firm.”

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

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He reminded participants that the image of the downstream sector of the oil & 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, as well as 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 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.

He welcomed the launch of the new code and was of the opinion that if the relevant authorities rigorously enforce compliance with the code’s provisions by companies operating in Nigeria, the corporate space in the country will, in a few years, become very different. Beyond improving productivity and reducing reputational risks, he believes well run organizations are an irresistible attraction for foreign and domestic capital.

The workshop was organized in two sessions; the morning session featured discussions regarding the history of corporate governance internationally, as well as an analysis of the reasons behind major corporate failures around the world from the turn of the century to recent years.

In the afternoon, the workshop focused on the Nigerian experience of corporate governance and examined the various statutory and sectoral codes until date.

Participants were exposed to the provisions of the new code and the practical measures to be taken by companies to ensure compliance.

The consultant emphasized that any resources expended by an organization in stepping up its corporate governance practices were an investment in the growth and profitability of the organization.

Participants were of the unanimous view that good corporate governance practices should be fully embraced at the level of boards who would drive the message downwards in the organization.

At the close of the event, participants committed themselves to working for the entrenchment of the code’s principles in their respective companies. It was accepted that further training sessions would be held at company level to identify and close out gaps in compliance.

 

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