Nigeria’s drive toward stronger financial accountability and institutional transparency took centre stage as the Financial Reporting Council of Nigeria (FRC) engaged civil society leaders and accountability stakeholders at the 2nd Edition of the Roundtable Engagement on Strengthening Nigeria’s Financial Integrity Framework.
The high-level forum, organised by the New Era for Sustainable Leadership and Accountability Initiative (NESLAI), brought together regulators, reform advocates, and civil society organisations in a strategic dialogue aimed at reinforcing trust, credibility, and ethical leadership within Nigeria’s financial system.
Speaking on behalf of the Executive Secretary and Chief Executive Officer of the FRC, Dr. Rabiu Olowo, Mr. Titus Osawe, Coordinating Director, Directorate of Corporate Governance and Directorate of Inspection and Monitoring, outlined the Council’s expanding regulatory mandate, recent achievements, and emerging challenges.
Mr. Osawe reaffirmed the FRC’s commitment to building a resilient economy anchored on credible financial reporting, sound corporate governance, and sustainability disclosures. He explained that the Council operates on two critical pillars: financial reporting standards, covering accounting, auditing, valuation, and actuarial practices; and non-financial reporting, which includes sustainability and corporate governance.
According to him, the development and enforcement of standards, codes, and regulations remain central to the FRC’s mandate, alongside ensuring strict compliance by regulated entities and professionals.
A major highlight of the engagement was the FRC’s evolving enforcement framework, particularly the implementation of FRC Rule 14 on Non-Compliance with Laws and Regulations (NOCLAR), scheduled to take effect from January 1, 2025. The rule expands the responsibilities of external auditors, requiring them to proactively identify, assess, and respond to both direct and indirect non-compliance issues that may materially affect financial statements.
The Council noted that the new rule closes long-standing regulatory gaps, strengthens investor protection, and enhances public confidence in audited financial reports. It further warned that financial statements signed with invalid FRC registration numbers or unresolved compliance issues would no longer be accepted, while auditors who fail to confirm compliance risk sanctions under the Council’s inspection and monitoring framework.
Mr. Osawe also disclosed that the FRC has fully operationalised its seven statutory directorates, including the Valuation Standards Directorate and the Actuarial Standards Directorate, which were recently activated. As part of this progress, the Council issued a Valuation Regulation and embarked on nationwide advocacy engagements across Lagos, Abuja, Owerri, and Kano, targeting estate valuers, engineers, quantity surveyors, and other valuation professionals to deepen understanding and compliance.
Addressing the Small and Medium Enterprises (SMEs) sector, Mr. Osawe described it as a critical pillar of Nigeria’s economy, noting that SMEs account for over 40 million entities, employ nearly 80 percent of the workforce, and contribute about 50 percent to GDP. He explained that the FRC introduced a Code of Corporate Governance for SMEs to address structural weaknesses that often limit business sustainability.
In addition, the Council rolled out free training programmes on International Financial Reporting Standards (IFRS) for SMEs, targeting both business owners and auditors. He stressed that all SME-focused engagements are provided at no cost, as part of the FRC’s developmental responsibility.
On sustainability reporting, the FRC highlighted Nigeria’s early and comprehensive adoption of the IFRS Sustainability Standards S1 and S2. Mr. Osawe disclosed that Nigeria’s sustained advocacy and sector-by-sector engagement earned the country international recognition from UNCTAD-ISAR, a United Nations body, for advancing sustainability reporting beyond regional benchmarks.
Welcoming participants, Comrade Edwin Olorunfemi, Executive Director of NESLAI, described the roundtable as a defining moment in Nigeria’s accountability journey, stressing that ethical financial systems are fundamental to sustainable development and global competitiveness.
“When financial systems fail, trust erodes, institutions collapse, and hope is weakened. But when financial integrity is protected, nations rise,” he stated, commending the FRC for its consistency in promoting ethical standards across both public and private sectors.
While acknowledging progress, the FRC also raised concerns over resistance from some regulated entities and limited public understanding of its mandate. Mr. Osawe called on civil society organisations to strengthen advocacy efforts, noting that credibility, transparency, and trust cannot be achieved by regulators alone.
In his closing remarks, Comrade Richard Otitoleke, Programme Coordinator of NESLAI, urged participants to translate dialogue into concrete action. He reaffirmed the commitment of NESLAI and allied civil society organisations to supporting the FRC in advancing accountability reforms and protecting Nigeria’s financial future.
As the roundtable concluded, stakeholders agreed that Nigeria cannot build a resilient economy without clean books, ethical leadership, and sustained collaboration between regulators and civil society, united in their resolve to place integrity at the centre of national development.
