Nigerian Economic Summit: Stakeholders explore ways to regulate Economy.

At the 30th Nigerian Economic Summit in Abuja, stakeholders from the public and private sectors convened to assess the current frameworks that manage public-private transitions and discussed mechanisms to build awareness, trust and confidence in the strong regulatory architecture that is in place. Stakeholders also discussed how to build on these strong foundations, and further enhance enforcement and implementation to deepen Nigeria’s leadership role in this space.

Opening the session, Lagos Business School Professor of Corporate Governance, Fabian Ajogwu, SAN said “Nigeria’s approach to regulating public-private transitions involves a combination of sector specific guidelines, industry codes and overarching governance guidelines such as the Nigeria Code of Corporate Governance. These regulations establish cooling off periods for individuals transitioning from regulatory roles to private sector positions. The code mandates a three-year cooling off period before such individuals can assume roles as Directors or senior managers in organisations that they once regulated.”

Stakeholders at the workshop recognised that Nigeria’s requirement for a three-year cooling off period exceeds current global best practice, with standards in Europe averaging two years or less. Participants comprising CEOs, Board Chairmen and Company Secretariats, were keen to emphasise the need for flexibility, preventing the universal application of a three-year period for all transitions, particularly in situations where the public sector transition is from a regulator not directly overseeing the private sector company or its sector.

In his role as the lead discussant, the Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama said: “Public-private transitions are not merely desirable; they are essential for promoting collaboration and innovation. The exchange of knowledge and expertise between these sectors can greatly enhance their respective capabilities, contributing to a dynamic and resilient economy. At the SEC, we are dedicated to fostering an environment where these transitions yield benefits for both public and private sectors while maintaining market trust and confidence. Transitions are not simply career moves, they are bridges connecting two vital sectors of the economy, when conducted transparently they can enrich public governance and invigorate private enterprise, driving innovation, efficiency and institutional trust.

Summarising the current context in Nigeria, Professor Ajogwu went on to say that “There seems to be a general lack of awareness regarding the existence of regulatory guidance on this issue. This undermines regulatory effectiveness by fostering misconceptions and non-compliance, eroding trust in market integrity. A critical assessment of the dynamics of these transitions is necessary, particularly in distinguishing between actual and perceived implications.”

Stakeholders aligned on the need to build public awareness and understanding of the existing regulatory frameworks and to continue to assess mechanisms to enhance enforcement and implementation to ensure that trust is developed and sustained.