By Ayomide Otitoju
Fidelity Bank Plc, a leading commercial bank in Nigeria, has reaffirmed its commitment to the highest corporate governance standards, consistently meeting full disclosure requirements and adhering to global best practices.
The bank was recently awarded the CG+ rating, the highest under the Corporate Governance Rating System (CGRS), which evaluates listed companies against established best practices. Fidelity Bank’s sustained top-tier rating has been widely praised by shareholders and market experts, highlighting the bank’s commitment to high corporate standards.
Mr. Godstime Iwenekhai, Head of the Listings Regulation Department at NGX Regulation (NGXRegco), emphasized that the CGRS aims to enhance the governance structures of listed companies, providing a clear benchmark for discerning investors. He noted that the CG+ rating indicates a company’s compliance with the highest corporate governance standards, which grants them special privileges in the stock market.
Corporate governance at the stock market involves timely submission of detailed operational results, full disclosure of material information, and adherence to investor protection safeguards. Companies must also ensure their shares remain unencumbered to facilitate efficient price discovery.
The Nigerian Exchange (NGX) underscored that its compliance tracker is designed to maintain market integrity and protect investors, with listed companies required to adhere to rigorous disclosure standards.
Market experts agree that corporate governance compliance is crucial for investor confidence. Mr. Olatunde Amolegbe, Managing Director of Arthur Steven Asset Management, stressed the importance of this rating, noting that it signals a company’s adherence to listing requirements. Similarly, Mallam Garba Kurfi, Managing Director of APT Securities & Funds, highlighted that a high rating indicates strong corporate governance, which is attractive to foreign investors.
Shareholders have also expressed their confidence in Fidelity Bank’s governance practices. Dr. Faruk Umar, President of the Association for the Advancement of Rights of Nigerian Shareholders (AARNS), praised the bank’s corporate governance structure, citing it as a key factor in investor confidence. Other shareholder groups echoed this sentiment, commending Fidelity Bank for its consistent growth and commitment to good governance.
The NGX enforces corporate governance through various sanctions on defaulting companies, including fines, trading suspensions, and in extreme cases, delisting. Fidelity Bank’s adherence to these standards has positioned it as a leading choice for investors seeking stability and growth.
