Public-private sector career transitions crucial for innovation — SEC

Emomotimi Agama, the director-general of the Securities and Exchange Commission (SEC), has said that public-private sector career transitions are crucial for innovation and collaboration.

He stated this at the recently concluded 30th Nigerian Economic Summit in Abuja, where stakeholders from the public and private sectors convened to assess the current frameworks for managing public-private transitions.

“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,” he said.

Fabian Ajogwu, a Lagos Business School Professor of Corporate Governance, explained, “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.”

However, stakeholders at the discussion noted 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.

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They emphasised the need for flexibility in applying the three-year transition period, particularly when the public sector transition is from a regulator not directly overseeing the private sector company or its sector.

The stakeholders also noted the need to build public awareness and understanding of the existing regulatory frameworks and continue to assess mechanisms to enhance enforcement and implementation to ensure trust is developed and sustained.

“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,” stated Ajogwu.

“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,” Agama of SEC added.