The Role of the Financial Reporting Council of Nigeria in Enhancing Corporate Governance Practices

This study assesses the role of the Financial Reporting Council of Nigeria in promoting and enforcing corporate governance standards among Nigerian companies. Established under the Financial Reporting Council of Nigeria Act 2011, the FRCN has responsibility for developing and enforcing financial reporting standards, corporate governance codes, and audit quality standards. Despite its broad mandate, questions persist about the FRCN's capacity, independence, and enforcement effectiveness, particularly following high-profile governance failures in the Nigerian corporate landscape. This study uses a descriptive survey design and collects data from 103 company secretaries, audit committee chairpersons, external auditors, and corporate governance consultants. The questionnaire assessed awareness of FRCN regulations, compliance levels, enforcement experiences, and perceptions of FRCN effectiveness. Regression and descriptive analysis are applied. Results reveal that FRCN regulatory awareness is high among listed company professionals but lower among non-listed entities. Compliance with FRCN corporate governance codes showed a positive correlation with improved board transparency and stakeholder engagement. However, enforcement actions were perceived as inconsistent and lacking deterrent effect for large corporations. The study concludes that the FRCN has made a meaningful but incomplete contribution to Nigerian corporate governance improvement. It recommends that the FRCN be granted greater institutional independence, expanded enforcement powers, and increased budgetary allocation to enable more rigorous oversight of corporate governance compliance across all regulated entities.

Keywords: Financial Reporting Council, corporate governance, FRCN, listed companies, regulatory compliance.