The Institute of Directors (IoD) Nigeria has called on stakeholders in the Nigerian financial sector to deepen collaboration towards strengthening the country’s financial reporting architecture to reduce the inherent risks and present a better understanding of the economy to attract foreign direct investment (FDI) into the country. According to the Institute, “High-quality financial reporting promotes private sector growth and reduces volatility in the economy”.
Ije Jidenma, President and Chairman of Governing Council, Institute of Directors (IoD) Nigeria, stated this during the quarterly IoD Members’ Evening tagged, ‘Emerging Trends in Financial Reporting: The Role of Directors in Upholding Standards’. She posits that the theme underscores the importance of improving directors’ understanding of emerging trends in financial reporting and their role in upholding standards and compliance.
According to her, recent data from National Bureau of Statistics (NBS) revealed that Foreign Direct Investment (FDI) in Nigeria has been declining due to the global perception of investment risk in Nigeria, which in part, is attributable, to the limited financial reporting and disclosures made by reporting entities in Nigeria especially in the public sector. “This is so because potential investors, especially international investors, do not get adequate economic data that will enable them to understand the risk profiles of Nigerian entities for informed judgments and decisions,” said Jidenma.
She posits that the members’ evening is IoD’s value proposition to members. According to her, members’ evening creates a valuable platform for business owners to expand their knowledge, learn from the success of others, tap emerging opportunities, share new ideas and perspectives, access industry influencers, enhance their resourcefulness, grow their clientele or customer base, build social skills while striving to make their businesses more visible. “This is one of IoD’s Nigeria’s value propositions to its members. It is a powerful accelerator of success for us as individuals and as a group”.
According to Jidenma, IoD has continued to demonstrate greater concern and commitment to work with all stakeholders to engender a business-friendly environment for a robust economic growth. “We have continued to canvas for good corporate governance practices of all private and public sector organisations in the country and will continue to partner with all business and thought leaders from both the public and private sectors to push forward our innovative ideas for our collective benefits”.
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She stated further that the engagement with the FRC was part of the Institute’s efforts to ensure critical collaborations that support good governance, especially with regulatory organisations within the Nigerian business environment.
Shuaibu Adamu Ahmed, Executive Secretary/CEO, Financial Reporting Council of Nigeria and guest speaker at the IoD Members’ Evening, urged the directors to be up to speed with emerging trends in Financial Reporting. “It is equally important that directors keep abreast of changing regulatory landscape to ensure long term business viability and avoid heavy regulatory penalties”.
Speaking on the theme, ‘Emerging Trends in Financial Reporting: The Role of Directors in Upholding Standards’, Ahmed reminded the directors about the roles of the board and its committees, which he said are germane to the efficiency, effectiveness and ultimate sustainability of the company they represent.
“Members of the board should therefore endeavor to regularly update their knowledge, skills and more importantly exercise high level of self-discipline as to contribute to the achievement of the objectives of board as a whole,” said Ahmed, disclosing that the FRC is working on a portal that ensures all regulators access company’s financial reports/statement from a single source before the end of 2022.
