Governance Briefing — May 28, 2024
Nigeria issued a dedicated corporate governance code for nonprofits, formalising board fiduciary duties, internal controls, and stakeholder reporting for charities and foundations.
Executive briefing: The Financial Reporting Council of Nigeria (FRC) released the Nigerian Code of Corporate Governance for Not-for-Profit Organisations (NCCG-NPO) on 28 May 2024. The code sets fiduciary requirements for trustees, prescribes internal control frameworks, and mandates transparent impact reporting for civil-society entities.
Key governance signals
- Board composition. NPOs should separate the roles of Board Chair and Chief Executive, institute staggered terms, and ensure independent oversight of fundraising.
- Internal control systems. Trustees must approve risk management policies covering financial stewardship, safeguarding of assets, and compliance with donor restrictions.
- Impact transparency. Annual reports should disclose programme outcomes, stakeholder engagement, and executive remuneration aligned with mission delivery.
Action checklist
- Conduct a governance gap assessment mapping existing policies to NCCG-NPO provisions on board roles, conflict management, and trustee succession.
- Document internal control frameworks covering procurement, grant management, and whistleblowing, with board approval and monitoring dashboards.
- Upgrade annual impact reporting to include metrics, beneficiary feedback, and independent assurance plans where funding mandates it.
Sources
- FRC Nigeria announcement of NCCG-NPO
- Nigerian Code of Corporate Governance for Not-for-Profit Organisations 2024
Zeph Tech equips African nonprofits with trustee governance toolkits, internal control templates, and impact reporting scorecards aligned to NCCG-NPO 2024.