Since Fidelity Bank Plc is the top commercial bank, it swiftly complies with all full disclosure regulations and follows international best practices, which are norms of corporate governance.
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The Corporate Governance Rating System (CGRS), which rates quoted firms based on established best practices and standards, has given Fidelity Bank the highest rating of CG+. According to an analysis of the most recent compliance report, Fidelity Bank continues to hold its highest grade of CG+, and analysts and shareholders have praised the bank for maintaining excellent corporate standards.
The CGRS was created to strengthen listed companies’ governance structures and give astute investors a basis to distinguish between listed companies based on their adherence to respectable corporate governance standards, according to Mr. Godstime Iwenekhai, Head, Listings Regulation Department, NGX Regulation (NGXRegco).
“We believe that corporate governance fosters moral business conduct, openness, and equitable competition,” Iwenekhai stated. He emphasised that the unique character combination “CG+” signified adherence to the highest corporate governance standards and best practices, earning the graded firms exclusive rights on the stock market.
Corporate governance compliance in the stock market entails correct reporting of reports and accounts, full disclosure of all relevant and regulated information, and timely submission of detailed operational results from period to period as required by the market rules.
In order to maintain efficient price discovery, the company’s shares must not be encumbered in a way that restricts their free float or the quantity of shares available to the general public. Other requirements for compliance include adhering to all investor protection laws when communicating with shareholders and calling statutory meetings as needed.
The Nigerian Exchange (NGX) stated that listed companies must follow strict disclosure requirements, and that the compliance tracker’s goals are to safeguard investors and preserve market integrity. In reference to some of the standards for its corporate governance rating, NGX said, “Financial information, which is periodic disclosure and on-going material events disclosure, should be released to NGX in a timely manner to enable it efficiently perform its function of maintaining an orderly market.”
Shareholders and market professionals concurred that a key consideration when choosing whether or not to invest in a public company is corporate governance compliance.
Corporate governance compliance rating, according to Mr. Olatunde Amolegbe, Managing Director of Arthur Steven Asset Management, is “extremely important” since it tells the investing public how well a firm complies with listing standards. “As you are aware, the NGX has a minimum degree of disclosure required of quoted businesses, and stock prices are mostly determined by the information that is already available.
By providing this information, the public is better able to judge the quality of the firms they are considering investing in and their current state or performance. Amolegbe, a former president of the Chartered Institute of Stockbrokers (CIS), stated that these markers serve as the first indicators of whether or not the companies are fulfilling their regulatory duties, including transparency requirements.
The corporate governance rating, according to Mallam Garba Kurfi, Managing Director of APT Securities & Funds, “shows the extent companies are in compliance with corporate governance.” According to Kurfi, a prominent market operator and member of the Securities and Exchange Commission (SEC) board, “low rating discourages foreign investors from investing in such companies while high rating means very good in doing right thing timely.”
According to Mr. David Adonri, Managing Director of HighCap Securities, “CG+ means excellent corporate governance rating.” “The benefit to stakeholders is maximised when a company is organised and upholds good corporate governance,” Adonri stated.
One of the main reasons investors decided to participate in Fidelity Bank was the bank’s excellent corporate governance, according to investors. According to Dr. Faruk Umar, President of the Association for the Advancement of Rights of Nigerian Shareholders (AARNS), Fidelity Bank has an excellent corporate governance system that gives investors peace of mind about the security of their assets.
Although the bank has a solid succession plan in place, he claims that shareholders may be confident in the quality of board oversight because of the calibre of independent non-executive directors on the board. Good corporate governance, according to Mr. Moses Igbrude, National Coordinator of the Independent Shareholders Association of Nigeria (ISAN), has been the foundation of Fidelity Bank’s remarkable performance throughout the years. Igbrude urged the board to “keep imbibing good corporate governance in order to sustain this growth.”
According to Mrs. Bisi Bakare, National Coordinator of the Pragmatic Shareholders Association of Nigeria, Fidelity Bank has left a “very excellent impression” on shareholders. She claims that during the previous five years, the bank has consistently demonstrated excellent leadership and produced consistently outstanding outcomes, growing year after year.
“We have never regretted investing in Fidelity Bank; it is a very good bank, and shareholders are very happy with their investments,” Bakare remarked. According to Mr. Boniface Okezie, National Coordinator of the Progressive Shareholders Association of Nigeria, Fidelity Bank’s consistent growth and remarkable returns over the years can be attributed to its strong corporate governance.
“One of the greatest stocks that investors could consider buying for higher profits is still Fidelity Bank. Regarding the bank’s robust and healthy assets, I have high hopes. There is every reason to expect for a more bright future with its exceptional customer service and sound corporate governance, Okezie added.
In addition to applying a variety of monetary and non-monetary sanctions, such as fines ranging from N100,000 to N100 million, partial or complete trading suspension, tagging and shaming with a red alert tag, and mandatory delisting in extreme cases, the NGX flags defaulting companies for poor corporate governance.
