The Financial Reporting Council of Nigeria (FRC) yesterday said the majority of government organisations and corporate organisations operating in Nigeria are not filing their financial statements as required by the Financial Reporting regulations.
The council has therefore vowed to sanction erring companies in line with its new policy direction to be firm with enforcement and ensure maximum compliance.
Executive Secretary/CEO of the Council, Dr. Rabiu Olowo stated this yesterday at a media/stakeholders’ roundtable with the theme, “FRC and the Renewed Hope Agenda for a Stronger Nigerian Economy.”
Olowo who unveiled his transformation agenda anchored on digitisation, operational excellence, stakeholder engagement and enforcement under the acronym of DOSE decried that many companies operating in Nigeria are flouting the regulations.
Some he noted are not using appropriate financial reporting framework, saying, “This has to be corrected as we are going to be very big on enforcement.”
Daily Trust reports that section 8(1d) of the FRC Act 2011 (as amended) mandates corporate entities to submit their financial statements.
The council, Olowo explained, would uphold the provisions and timelines for the submission of the reports, adding that it would not “Shy away from using its statutory powers to enforce the submission of financial statements under the Act.”
He said, “Section 33 of the FRC Act 2011 (as amended) has provided for the payment of annual dues by 23 individual professionals, firms and Public Interest Entities (PIEs) within 60 and 120 days respectively.
“The council will apply appropriate penalties for the failure of any individual, firm or PIE as laid down in the Act.
“In cases of non-compliance or irregularities, the council takes enforcement actions such as issuing warnings, or penalties, suspension and/or deregistration of professionals as well as serving a notice for the withdrawal and restatement of erring entities’ financial statements.”
He also disclosed that the council would unveil the code of corporate governance for public institutions and not for profit organisations in quarter one of 2024.
Some of the stakeholders including Mr. Ibironke Babajide, Dr. Emmanuel Otitoloye and the representative of the Securities and Exchange Commission (SEC) called for greater collaboration with other sectors to achieve maximum compliance.
Representative of SEC Director-General, Mr. Saad Abdulsalam tasked stakeholders to walk the talk in terms of collaboration. He also said efforts must be made to address inter-agency rivalry, deepen knowledge and information sharing and periodic engagement.
Former President of Association of Chartered Certified Accountants, Mr. Joseph Owolabi said a robust financial reporting system would boost investors’ confidence in Nigeria’s economy.
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