Business
FRC Unveils New Initiative to Combat Audit Failures
The Financial Reporting Council of Nigeria (FRC) has reaffirmed its commitment to enhancing audit oversight and eradicating audit failures within the country’s financial reporting landscape. This was highlighted by Rabiu Olowo, the Executive Secretary and CEO of the FRC, at the recent Leadership Summit for Auditors and Other Assurance Providers in Lagos.
The FRC’s strategy revolves around a four-pronged approach called “DOSE”—Digitisation, Operational Excellence, Stakeholder Engagement, and Enforcement. This initiative aims to elevate regulatory standards and ensure stringent compliance among auditors and assurance providers across Nigeria.
Olowo emphasized the council’s focus on digitization to improve oversight capabilities, allowing for early detection of risks and audit deficiencies. He highlighted the severe consequences of past audit failures, referencing the collapse of AfriBank Plc and the Cadbury saga as significant examples of auditors failing to detect fraud, resulting in substantial financial losses and diminished investor confidence.
Olowo pointed out key contributors to audit failures, such as inadequate audit procedures, lack of industry-specific knowledge, and management’s ability to override internal controls. He stressed the FRC’s role as the “last line of defense” against such failures, underscoring the importance of their work in maintaining public trust in Nigeria’s financial systems.
Shaakaa Chira, the Auditor-General for the Federation, echoed these concerns in his keynote address, emphasizing the need for proactive regulation to prevent audit failures. He noted that Nigeria has suffered significant financial losses due to audit failures in the past and expressed the federation’s intent to overhaul the financial system to ensure greater financial probity.
Chira also provided updates on addressing audit backlogs, revealing that audits for 2020 and 2021 have been completed, with the 2022 report nearing completion. He called for close collaboration between industry practitioners and his office to ensure timely submission of financial reports.
As the FRC advances with its DOSE initiative, its efforts are expected to play a crucial role in restoring public confidence in Nigeria’s financial reporting sector, reinforcing the importance of transparency, accountability, and rigorous audit practices.
Former Kaduna Central Senator Shehu Sani has criticized the World Bank for worsening Nigeria’s economic difficulties. In a post shared on X, Sani accused the institution of projecting that Nigeria’s hardship would extend for another 15 years before the country could reach a better economic future. He questioned how many Nigerians would be left to enjoy that future, and how many African nations the World Bank has successfully helped to prosperity.
Sani’s remarks follow the World Bank’s latest *Africa’s Pulse* report, which forecasts that the Nigerian Naira will be among the worst-performing currencies in Sub-Saharan Africa by August 2024. The report placed the Naira’s decline alongside that of the Ethiopian Birr and South Sudanese Pound.
Heirs Insurance Group (HIG) recently announced impressive financial results for the 2023 fiscal year, marking significant growth across all key metrics. The Group’s Gross Written Premium (GWP) surged by 59.3%, from N19.9 billion in 2022 to N31.7 billion in 2023. This remarkable performance underscores HIG’s resilience and operational efficiency, further solidifying its position as one of Nigeria’s fastest-growing insurance firms.
Heirs General Insurance (HGI) saw a 77% increase in GWP, reaching N12 billion in 2023. HGI’s profit before tax (PBT) also rose by 203%, reflecting the company’s effective cost management. Similarly, Heirs Life Assurance (HLA) reported a 71% GWP increase and a staggering 395% rise in PBT. Both companies have demonstrated a strong commitment to customer satisfaction, disbursing billions in claims.
Beyond financial success, HIG actively engages in corporate social responsibility (CSR) projects, contributing over N100 million to education, community development, and financial literacy. With plans for future expansion and innovation, HIG is poised to remain a key player in Nigeria’s evolving insurance market.
Federal Capital Territory (FCT) Minister, Nyesom Wike, has called on Nigerians to fulfill their tax obligations, emphasizing that government revenue is essential for delivering social services. Wike made this appeal during the inaugural Abuja Business and Investment Summit, held in Abuja on Wednesday.
Speaking on the summit’s theme, “Optimising Investment Through Partnerships,” Wike stressed the importance of collaboration to generate investment opportunities. He dismissed the misconception that the government does not need revenue, explaining that taxes are crucial for funding public services.
Wike reiterated that both investors and the government must benefit from such partnerships, ensuring that both parties “go home smiling” through a fair exchange of services and taxes.
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