LCCI Raises Alarm Over Partisan Activities of Company CEOs
The Lagos Chamber of Commerce and Industry (LCCI) has expressed worry over the involvement of chief executive officers (CEOs) of companies in the country and their chairmen in partisan politics, saying that it portends grave danger for shareholders and depositors especially in the case of banks.
LCCI said that recent investigations show that a number of company CEOs and chairmen are neck-deep in partisan politics as evident in the huge amount of company funds which are wasted on political activities for personal aggrandizement to the detriment of the companies and shareholders.
Chief Femi Deru, president of the chamber, said the involvement of managers of publicly quoted companies in partisan politics does not augur well for the society as it does not harmonise with corporate governance.
Deru said the current electoral process had thrown up corporate governance issues in the private sector. “The Securities and Exchange Commission (Sec) and the Central Bank of Nigeria (CBN) should redefine the limits of political partisanships for chairmen and CEOs of companies that are publicly quoted”, he advised. He said that good corporate governance involves rules and regulations for ensuring that management of companies act in the interest of investors and of the firms. “Anything contrary is unacceptable,” he said.
Deru is also not happy with the current revenue formular. He said the current revenue allocation of 52.8 per cent to the federal government, 48.2 per cent to state and local governments is not equitable and does not reflect the demands for development, adding that the states and local governments have a lot more to do in the provision of schools, health services and roads than the federal government.
LCCI said that recent investigations show that a number of company CEOs and chairmen are neck-deep in partisan politics as evident in the huge amount of company funds which are wasted on political activities for personal aggrandizement to the detriment of the companies and shareholders.
Chief Femi Deru, president of the chamber, said the involvement of managers of publicly quoted companies in partisan politics does not augur well for the society as it does not harmonise with corporate governance.
Deru said the current electoral process had thrown up corporate governance issues in the private sector. “The Securities and Exchange Commission (Sec) and the Central Bank of Nigeria (CBN) should redefine the limits of political partisanships for chairmen and CEOs of companies that are publicly quoted”, he advised. He said that good corporate governance involves rules and regulations for ensuring that management of companies act in the interest of investors and of the firms. “Anything contrary is unacceptable,” he said.
Deru is also not happy with the current revenue formular. He said the current revenue allocation of 52.8 per cent to the federal government, 48.2 per cent to state and local governments is not equitable and does not reflect the demands for development, adding that the states and local governments have a lot more to do in the provision of schools, health services and roads than the federal government.
