Companies, government institutions falling short of Financial Reporting Act, says FRC

Rabiu Olowo, executive secretary and chief executive officer of the Financial Reporting Council (FRC) says there is concerning evidence that numerous entities and government institutions are falling short of the FRC Nigeria Act 2011.

Olowo, who spoke during a stakeholder engagement and media roundtable on Wednesday, said the entities and government institutions are not meeting the high standards expected under the FRC Act.

He said FRC will be transformed into an independent and high-performing regulator to ensure maximum compliance with the FRC Act 2011, in order to give full credibility to any financial statements coming out of Nigeria in a way that investors can rely on the information provided.

“Our task therefore is to transform the FRC into a new, robust, independent, and high-performing regulator comparable globally,” he said.

“The bedrock of the transformation agenda of the Council going forward is to ensure maximum compliance with the FRC Act 2011 (as amended), and other statutory instruments released by the Council.

“FRC intends to give full credibility to any financial statements coming out of Nigeria in a way that investors can rely on the information in the statements.

“A new FRC that will be firm and fair in carrying out her mandate; that will hold corporates and individuals accountable; and that will restore confidence in corporate reports and governance in the Nigerian economy thereby enhance the renewed hope of President Bola Ahmed Tinubu, GCFR.”

Also, Olowo said the establishment of new corporate governance for public sector and not-for profit sector is almost done.

He said the public sector governance code will form a key part of his tenure as FRC chief.

“The public sector remains the catalyst of economic growth in not only Nigeria but emerging markets. Institutionalisation of corporate governance in the public sector of Nigerian economy is fundamental towards sound policies and economic growth,” Olowo said.

“This we plan to unveil in the first quarter of year 2024. Similarly, the Council seeing the need for proper guidance to Not-For-Profit Organisations, embarked on developing a Governance Code for Not-For-Profit Organisations.”

Olowo said the code is at an advanced stage and will be unveiled within the first quarter of 2024.