Financial Crime World

Title: New Law Boosts Financial Compliance in Nigeria: The Financial Reporting Council of Nigeria (FRCN) Announces Passage of Amendment Act

The Financial Reporting Council of Nigeria (FRCN) has announced the signing into law of the Financial Reporting Council of Nigeria (Amendment) Act 2023 by former President Muhammadu Buhari on May 3, 2023. This legislative development marks a significant stride towards enhancing transparency, accountability, and good governance in Nigeria’s business sector.

Key Amendments to Financial Reporting Regulations

The Financial Reporting Council of Nigeria (Amendment) Act, 2023, brings about the following crucial amendments to the regulations and standards that govern financial reporting in Nigeria:

  1. Fortified enforcement powers: The new legislation strengthens the Council’s authority to ensure compliance with reporting standards and improves the efficiency of its regulatory function.
  2. Clear definition of Public Interest Entities (PIEs): The Amendment Act clarifies the ambiguity surrounding the definition of PIES, ensuring a more consistent application of regulations.
  3. National Financial Statements Repository: The Act mandates the establishment of a national repository for financial statements by PIES to enhance transparency in financial reporting.
  4. Revised Governing Board: The Act streamlines the membership of the FRCN Governing Board and strengthens its structure to effectively oversee financial reporting and corporate governance in Nigeria.

Benefits of the New Amendments

These modifications are expected to yield the following benefits for businesses and the Nigerian economy:

  • Improved financial reporting quality and reliability: Enhanced reporting standards will strengthen investor confidence in the Nigerian business environment.
  • Sustainable development: Stronger corporate governance frameworks will foster sustainable development in Nigeria.

Accessing the Financial Reporting Council Amendment Act, 2023

For those interested, the Financial Reporting Council Amendment Act, 2023, can be downloaded here.