Understanding Financial Reporting Council of Nigeria’s Role in Enhancing

Nigerian Economy

Donatus Eleko        

The Financial Reporting Council (FRC) of Nigeria has served as a cornerstone in Nigeria’s economic landscape and continues to champion transparency, accountability, and good corporate governance. As the regulatory body responsible for overseeing financial reporting and corporate governance standards, the Council plays a pivotal role in fostering investor confidence, promoting economic stability, and driving sustainable growth.

The Financial Reporting Council of Nigeria was established to develop, enforce, and promote compliance with financial reporting (accounting, auditing, valuation & actuarial), corporate governance, and sustainability reporting standards in Nigeria. Its functions, as outlined in the FRCN Act 2011 (as amended), are designed to ensure that public interest entities (PIEs) adhere to international best practices, thereby safeguarding the interests of investors, stakeholders, as well as the general public.

By publishing globally aligned standards and enforcing their compliance, it directly provides a foundation upon which good governance, both in public and private organisations, can be attained. By promoting transparency and accountability, the Council has significantly contributed to Nigeria’s economic development through the quality of financial statements that come out of Nigeria while also protecting the interest of local and foreign investors.

The Council’s activities are not merely regulatory; they are transformative. By promoting transparency and accountability, the Council has significantly contributed to Nigeria’s economic development in several ways. For one, transparent and reliable financial statements make Nigeria an attractive destination for international investors, increasing capital inflows into the country. High-quality financial reporting and robust corporate governance standards also enhance Nigeria’s reputation in the global market, driving economic growth and creating jobs. By enforcing compliance with financial reporting standards, FRC mitigates the risk of financial malpractices, ensuring a stable and predictable business environment. Additionally, the Council’s focus on good corporate governance encourages businesses to adopt sustainable practices, contributing to long-term economic and social development.

These efforts not only boost the confidence of investors but also position Nigeria as a more attractive investment destination on the global stage. As a regulatory body, FRC is mandated to implement the provisions of the law as passed by the legislature. Under the leadership of Dr. Rabiu Olowo, the Executive Secretary/CEO of FRC, the Council is poised to take its true form as an independent regulator that serves the greater public interest. Dr. Olowo’s commitment to enhancing the Council’s capacity to monitor and enforce compliance with financial reporting and corporate governance standards reflects his determination to build on the Council’s legacy.

The Financial Reporting Council of Nigeria remains steadfast in its commitment to enhancing the Nigerian economy through transparency, accountability, and good governance. As Nigeria continues to navigate its economic journey, FRC Nigeria will remain a key player in building a prosperous future for all.

QUOTE

“The Council’s activities are not merely regulatory; they are transformative. By promoting transparency and accountability, the Council has significantly contributed to Nigeria’s economic development in several ways. For one, transparent and reliable financial statements make Nigeria an attractive destination for international investors, increasing capital inflows into the country. High-quality financial reporting and robust corporate governance standards also enhance Nigeria’s reputation in the global market, driving economic growth and creating jobs. By enforcing compliance with financial reporting standards, FRC mitigates the risk of financial malpractices, ensuring a stable and predictable business environment. Additionally, the Council’s focus on good corporate governance encourages businesses to adopt sustainable practices, contributing to long-term economic and social development.”