Nigeria institutes new governance rating system


“From March last year, we have been working to create a corporate governance rating system. This system will give investors the ability to be able to rank stocks and inspect the quality of governance of companies that are listed on the Nigerian Stock Exchange,” Soji Apampa, Executive Director at the Convention for Business integrity told CNBC Africa.

The corporate integrity for listed companies is in partnership with the Convention on Business Integrity and Apampa believes that the system will boost investor confidence in Nigeria.

“This rating system will also give a level of confidence to people who are investing in the Nigerian market that you don’t need to tar all businesses with the same brush in Nigeria and that there is a way of separating between one and the other.”


According to Apampa, the ratings will be done on pilot companies that is between March and April this year and the results will be shared with everybody at the World Economic Forum Africa on May 7th and 9th in Abuja.

“Then, rest of the markets will now be rated based on the learning from the pilot process and then the companies that have market capitalisation, 1 billion dollars and over and also who meet some liquidity thresholds will then, be put together on the premium board which will be traded.”

“Secondly, the rest of the market, all of those how make the corporate market threshold will then be put into a common basket and a corporate index, trade able index will also be created,” he explained.

The model is completely Nigerian as finding something that would work for the context of Nigeria has been difficult, as the system within country is very different. Nonetheless, it has been inspired by various places around the world such as South Africa and Novo Mercado.

“It is totally Nigerian created because we have look at the systems that are elsewhere and the biggest problem has always been a problem of context,” he added.