The Nigerian ACCOUNTANT - The Institute of Chartered ...

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 

(Established by Act of Parliament No.15 of 1965) 

Vision 

Statement 

To be a leading global 

professional body. 

Mission 

Statement 

To produce 

world-class chartered 

accountants, regulate and 

continually enhance their 

ethical standards and 

technical competence in 

the public interest. 

ICAN LIAISON OFFICES 

Abuja Liaison Office: 

Akintola Williams House 

Plot 2048, Michael Okpara Way, 

Zone 7, Wuse District, 

Abuja. 

Tel: 09 – 8722302, 08022481992 

E-mail: aoluwayinka@yahoo.com 

Contact Person: 

Mr. Ayodele Oluwayinka 

Kaduna Liaison Office: 

3, Kanta Road, Ali Turaki House, 

Kaduna. 

Tel: 08036788275 

E-mail: adegoke_abiola@yahoo.com 


Mrs. A.A. Adegoke 

Kano Liaison Office: 

Murtala Mohammed Library Complex 

Ahmadu Bello Way, 

P.O. Box 11283, Kano. 

Tel: 08035900399 

Email: icankano@ican.org.ng, 

auhamman@yahoo.com 


Mr. A.H. Umaru 

Officers & Council Members 

2012-2013 

President 

Adedoyin Idowu OWOLABI, BSc, MILR, MNIM, FCA 

Vice President 

Kabir Alkali MOHAMMED (Alhaji), mni, FCIS, FCA 

1 st Deputy Vice President 

Chidi Onyeukwu AJAEGBU, ACS, MBF, FCA 

2 nd Deputy Vice President 

Samuel Olufemi DERU (Otunba), FCA 

Honorary Treasurer 

Titus Alao SOETAN (Deacon), FCA 

Members 

Solomon Oluwole ADELEKE (Deacon), FCA 

Afolabi Abiodun AJOMALE (Chief), FCA 

Davidson Chizuoke ALARIBE (Chief), MA, CFA, MIMC, MNIM, FCA 

Shakirat Adepeju BABATUNDE (Alhaja), BSc (Hons), MBA, MSc, FCA 

Sunday Abayomi BAMMEKE, BSc, FCA 

Adaku Chilaka CHIDUME-OKORO (HRH), BSc, MSc, FCA 

Uchenna Ifesinachi EROBU (Mrs.), MBA, FCA 

Comfort Olujumoke EYITAYO (Mrs.), mni, CFA, FCA 

Mustapha Bulu IBRAHIM (Alhaji), BSc, MBA, FCA 

Tijani Musa ISA (Mallam), BSc, FCA 

* 

Francis OJAIDE (Professor), OON, MSc, PhD, FCA (IPP) 

Razak JAIYEOLA (Alhaji), BSc, CRISC, FCA 

Monica Ngozi OKONKWO, MSc, ACIB, CFA, CFE, FCA 

Nnamdi Anthony OKWUADIGBO (Mazi), BSc, FCA 

Innocent OKWUOSA, MSc, ACIB, FCA 

Onome Joy OLAOLU (Mrs.), BSc, MSc, ACPIN, FCIB, FCA 

Olusola OYETAYO, BSc, FCA 

Tayo PHILLIPS, MBA, FCA 

Ganiyu Olufemi SANNI, BSc, Dip. (Law), MNIM, MPA, FCA 

Oladipo Aboaba SMITH, BSc, FCA 

Josephine Oluseyi WILLIAMS (Mrs.), BSc, FCA 

Haruna Nma YAHAYA (Alhaji), BSc, MBA, FCA 

Isma’ila Muhammadu ZAKARI (Mallam), mni, FCA 

Registrar/Chief Executive 

Olutoyin Adeagbo ADEPATE, BSc, MBA, FCA, OON 

Auditor 

Thomas AYORINDE & Co. (Chartered Accountants) 

Denotes Past President 

* 

THE NIGERIAN ACCOUNTANT 2 

July/September, 2012

From The 

EDITOR 

Editorial Board 

Members 

Mazi Nnamdi OKWUADIGBO 

Oladipo Aboaba SMITH 

Innocent Iweka OKWUOSA 

Dr. L.O. OBOKOH 

Yohanna Gyang JUGU 

Dr. C.A. OKAFOR 

Dr. (Mrs.) Olubunmi F. OSEMENE 

Dr. Joseph ACHUA 

Dr. Austin U. NWEZE 

Dr. David D. SOBANDE 

Dr. M.A. OLADOJA 

Frederick Iluyomade OGUNJUBOUN 

Editor 

Dayo AJIGBOTOSHO 

Assistant Editor 

Muyiwa DARE 

Staff Writer 

Sunkanmi OLOKETUYI 

Reporter 

Ruth IDUMUEKWU 

Adverts Manager 

Orhue GUOBADIA 

Correspondence should be 

addressed to:- 

The Corporate Affairs 

Department 

THE INSTITUTE OF CHARTERED 

ACCOUNTANTS OF NIGERIA 

Plot 16, Professional Centre Layout, 

Idowu Taylor Street, 

Victoria Island. 

P.O. Box 1580, Lagos. 

Tel: (01) 7642294, 7642295 

Fax: (01) 4627048 

E-mail: 

corporateaffairs@ican.org.ng 

ICAN Website: 

www.ican-ngr.org 

At his investiture on May 30, 2012, the 48 th President of the 

Institute of Chartered Accountants of Nigeria (ICAN), Mr. 

Adedoyin Idowu Owolabi, BSc (Econs.), MILR, MNIM, FCA, 

told his audience that the Institute would proactively deliver 

on its mandate as the conscience of the nation and one of the ways 

of doing so would be to prepare and present a Whistle-blower Bill to 

the National Assembly for consideration and passage as part of the 

ICAN contributions to the fight against corruption. 

From his inaugural speech and the interview he granted The Nigerian 

Accountant, the whistle-blower idea was clearly his ruling passion and 

ever since his investiture on May 30 at the Council Chamber of the 

ICAN Secretariat, he has gone everywhere canvassing support for it 

among various stakeholders of the Institute. His conviction about the 

possibility of dealing a death blow to corruption through this approach 

is one of the predominant issues of the cover interview. 

As far as he is concerned, if there is sure enough protection for 

those who have information that can help in tackling corruption, 

many Nigerians will be emboldened to make concerted contributions 

towards the eradication of that societal ill which is threatening the very 

foundation of the polity. 

For someone whose first love was Medicine, but who ended 

up becoming an Economist and Chartered Accountant, the new 

President’s passion for the economy and national development is 

remarkable. In the interview, he opened up on the state of the nation 

and the connection between corruption and the spate of disasters 

happening almost on daily basis and what the leadership must do to 

save the country from the brink of collapse. The interview entitled, 

Corruption: Whistle-Blower Approach Is the First Step, is a must 

read. 

Read also about the upcoming Annual Accountants’ Conference 

whose theme “Building Enduring Institutions for National 

Development” coheres with the theme of the Institute’s 2012/13 

Presidential year: Building a Solid Structure on a Solid Foundation. 

As we were getting ready to go to press, representatives of the 

Institute travelled to Abuja for a memorial service in honour of late 

Mrs. Lilian Las, a Senior Manager at the Abuja Office of ICAN, who 

lost her life in the ill-fated Dana air crash that occurred on Sunday, 

June 3, 2012 at Iju area of Lagos State. Apart from Mrs. Las who was 

actually on her way to Lagos to attend a Management meeting on the 

fateful day, nine members of the Institute also died in the crash. May 

their souls rest in peace. 

Your comments on the interview and articles in this edition are 

welcome. Please write to: 

corporateaffairs@ican.org.ng; or 

daajigbotosho@ican.org.ng 



Contents 

4 

FEATURES 

* 

July/September, 2012 Vol.45, No.3 

Evaluating and Improving Internal 

Control in Organisations 

49 

IFRS ADOPTION 

* 

Understanding IFRS: The First-Time 

Adopters 

The Nigerian 

ACCOUNTANT 

(ISSN: 0048 – 0371) is published 

quarterly for N400 by the 

INSTITUTE OF CHARTERED 

ACCOUNTANTS OF NIGERIA 

HEAD OFFICE: 

Plot 16, Idowu Taylor Street, 

Victoria Island, Lagos. 

P.O. Box 1580, Lagos. 

Telephone: (01) 7642294, 

7642295 

Fax: (01) 4627048 

E-mail: info.ican@ican.org.ng 

Website: www.ican-ngr.org 

ANNEXE OFFICE: 

82, Murtala Mohammed Way, 

Ebute Metta, Lagos. 

Telephone: (01) 7642297, 

7642298 

ICAN CENTRE: 

Plot 12, Kofo Kasumu Street, 

Amuwo Odofin, Lagos. 

* 

The views expressed by 

correspondents or contributors 

in this journal are not necessarily 

those of the Institute. 

* 

The Institute reserves the 

right to refuse, cancel, amend 

or suspend an advertisement 

or insertion and no liability can 

be accepted for loss arising 

from non-publication or late 

publication of any advertisement 

or insertion. All articles are 

subject to editing. 

* 

© No part of this publication 

may be reproduced without the 

prior written permission of the 

publishers. 

18 

EDUCATION 

* 

The Perception 

of Accountants in 

Institutions of Higher 

Learning on the 

Funding Situation of 

Nigerian Universities 

30 

EVENTS 

* 

2012 ICAN 

Conference: Building Enduring 

Institutions for Nigeria’s Development 

34 

CONFERENCE 

* 

Economic Transformation: ICAN 

Calls for Transparency in Financial 

Reporting 

* Communiqué of the 7th Eastern 

Zonal Districts Annual Accountants’ 

Conference 

36 

COVER INTERVIEW 

* 

CORRUPTION: Whistle-Blower 

Approach Is the First Step 

46 

TRAVELOGUE 

* 

The World Unites Against Fraud In 

Orlando, Florida, USA 

54 

INVESTITURE 

* 

ICAN Will Support Government with 

Policy Recommendation 

— Owolabi 

59 

PRESENTATION 

* 

Challenges to the Chartered 

Accountant In Economic 

Transformation 

2 From the Editor 

5 Legal Matters 

6 Election 

9 News 

32 From the Presidency 

52 Opinion 



News 

Olusanmi 

Onyeagocha 

Ibrahim 

Olugbenga 

Oloko 

Anosike 

Osunbade Okara Awani 

Las 

(Membership number: 25222); Mr. Komolafe Olugbenga 

(Membership number: 7388); Mrs. Ogechi Onyeagocha 

(Membership number: 6601); Mr. Peter Anosike (Membership 

number: 10880); Mr. Yusuf Ibrahim (Membership number: 4179); 

Mr. Adetunji Akintola Oloko (Membership number: 4789); Mr. 

Daniel Amajuoritse Awani (Membership number 5372), Mr. 

Anthony Okara (Membership number 33896); and Mr. Aderoju 

Osunbade (Membership number 16479). 

In a tribute read by the Registrar of ICAN, Mr. Olutoyin Adepate 

ICAN, Family, Hold Memorial 

Service for Late Lillian Las 

Tears flowed uncontrollably at the Redeemed Christian Church 

of God, Resurrection Parish, FHA Estate, Lugbe, Abuja on 

Saturday, July 14, 2012 as family members, representatives of 

the Institute of Chartered Accountants of Nigeria (ICAN), friends 

and well-wishers held a memorial service in honour of late Mrs. 

Lilian Las, a Senior Manager at the Abuja Office of ICAN. 

Mrs. Las and nine members of the Institute were involved in the 

ill-fated Dana air crash that occurred on Sunday, June 3, 2012 at 

Iju area of Lagos State. She was on her way to Lagos to attend a 

Management meeting scheduled for the following Monday before 

she met her untimely death. 

The nine ICAN members working in different organisations who 

also lost their lives in the crash were: Mr. Awodogan Olusanmi 

Lilian’s husband and her sister Mrs. Ghaji 



News 

(see box), the deceased was described as a rare gem who had 

a very healthy attitude to life. According to Mr. Adepate, “she had 

a very healthy attitude to life and was ready to accommodate 

everyone because of her friendly nature, disposition and 

readiness to assist and give a helping hand even beyond the 

call of duty 

In his own tribute, the widower, Engr. Isa Jephthah Las, 

described his late wife as a loving mother and a friend. “I have 

lost a loving mother and a friend who will be greatly missed. My 

wife was always standing by me in trying times and encouraging 

me to move on. She was indeed a perfect wife who ensured 

peace in our home,” he said. 

Delivering the short exhortation at the service, the presiding 

Pastor of the Church, Mr. Idowu Adeleye, noted that life is vanity 

and temporary. He advised that all men must always live and 

Chidi Ajaegbu, 1st Deputy Vice President ICAN (left); 

Comfort Eyitayo, Council member; and Olutoyin Adepate, 

Registrar/Chief Executive, ICAN at the memorial service 

be ready for departure as no one knew when, where and how 

God would make the home call through death. 

He continued, “Life does not consist of the material wealth 

we gather but essentially in the fulfillment of purpose and impact 

made in the life of others”. The congregation was encouraged 

to continually seek to please God in their disposition to life as 

well as strive to make positive impact at all times. 

Born on August 12, 1969, the eighth among nine children, 

Lilian Las who hailed from Mubi, L.G.A in Adamawa State, 

had a Masters in Business Administration (MBA) specialising 

in Finance. She was employed by ICAN as Manager at the 

Abuja Liaison Office in 2000. Prior to that time she had worked 

temporarily as Finance officer at the former Nigerian Agricultural 

and Cooperative Bank, Kaduna where she did her National 

Youth Service Corp programme. She also worked as Inventory 

Officer at Dangote Flower Mills. She was an alumnus of both 

Ahmadu Bello University, Zaria and University of Maiduguri. 

For her primary and secondary education, she attended St. 

Andrews Primary School, Yola, Adamawa State and Queen’s 

College, Yaba, Lagos. 

She was survived by her husband, Engr. Isa Jephthah Las 

and her siblings. 

Lilian Las, A Rare Gem 

All of a sudden, the bell has tolled for our 

dear Lilian Las at the prime of life. We 

still remember the enthusiasm on her 

face every time she attended to people and to 

her schedules with rare commitment and dedication to duty. We 

remember very vividly her conviviality during the investiture of Mr. 

Adedoyin Idowu Owolabi, BSc (Econs.), MILR, MNIM, FCA, as the 

48 th President of the Institute of Chartered Accountants of Nigeria 

(ICAN) on Wednesday, May 30, 2012, the last time we ever saw 

on this side of eternity. It is too hard a reality to accept, that such 

a warm and gentle soul has gone too soon – jostled to life beyond 

through an unfortunate crash that could have been avoided if those 

we entrusted with the destiny of our nation had not been 

sleeping the sleep of death while on duty. 

Before the brusque end to her vibrant life, Lilian, who had 

a Masters in Business Administration (MBA) specialising 

in Finance, was for many years the face of ICAN in Abuja. 

Since 2000, when she was employed as a Manager to take 

charge of our Abuja liaison office, she had warmed herself to 

the hearts of many of our stakeholders in the Federal Capital 

Territory and beyond. It was not surprising that she got along 

well with different kinds of people with their different kinds of 

temperaments and idiosyncrasies: she had a very healthy 

attitude to life and was ready to accommodate everyone 

because of her friendly nature, disposition and readiness to 

assist and give a helping hand even beyond the call of duty. 

Death has short-changed us, depriving us of one sincere 

and truly loving soul. Not many will forget Lilian in a hurry 

for a long time for being a veritable source of inspiration and 

encouragement in her service to our Institute and indeed to all 

of humanity. Lilian was too young and too precious to die at a 

time like this. But then, her death also means the cessation 

of life’s struggles especially in a country like Nigeria gasping 

for life in the vice-grip of corruption, insecurity and ineptitude 

and indeed in a world weary, sick and groaning from the debilitating 

assaults of too many disasters and calamities. 

O death, where is your sting O grave, where is your victory 

... But thanks be to God, who gives us the victory through our Lord 

Jesus Christ (1Co 15:55 – 57). Lilian, who until that fateful day, 

Senior Manager, ICAN Abuja Liaison office, has the victory already 

through Jesus Christ. 

Notwithstanding the fantastic possibilities of technology 

especially in this Information age, people are still the greatest 

assets of any organisation and, for our Institute, Lilian was a rare 

gem. We identify with Lilian’s husband, Las, who is another gentle 

and loving soul, and the rest of their family, colleagues and wellwishers 

at this moment of sorrow and we pray that you will all have 

the fortitude to bear the loss which is truly irreplaceable. We love 

Lilian but we know that the Lord Jesus Christ, whom she served 

while on earth, loves her best. 

Adieu, Lilian Naicha Las: Rest in the bosom of the Lord in peace. 

Olutoyin Adeagbo Adepate, BSc, MBA, FCA, OON 

Registrar/Chief Executive, 

The Institute of Chartered Accountants of Nigeria (ICAN) 

July 2012 



News 

had been resolved and the relationship between ICAN and the 

two bodies was now cordial. 

Also as part of his itinerary during the tour, the President 

visited Rivers State Polytechnic, Bori where he interacted with 

the Rector and Students of Accountancy. He told the Rector 

of the Polytechnic, Sir Nwolu-Elechi Obianko that his mission 

was to encourage the students to register for and pass ICAN’s 

professional examinations. He disclosed further that he was there 

to also maintain the cordial relationship between the school and 

ICAN, by getting first hand information about how ICAN members 

in the employ of the Institution were faring. 

Responding, the Rector praised ICAN for the thorough job it 

did before the Accountancy department of the Polytechnic could 

be accredited. While rating high the ICAN members working in 

the Polytechnic, the Rector implored ICAN President to make his 

visit to the institution a regular one. 

ICAN President, Doyin Owolabi presenting some ICAN publications 

to the Rector of Rivers State Polytechnic, Sir Nwolu-Elechi Obianko 

during ICAN’s visit to the School in Bori, Port Harcourt 

ICAN Members Must Market Our 

Products — Doyin Owolabi 

The 48 th President of the Institute, Mr Doyin Owolabi has 

appealed to all members of ICAN, irrespective of their positions 

and status, to assist the Institute in marketing its product, i.e. 

the Accounting Technician Scheme, West Africa (ATSWA) and 

Professional Examinations. 

Owolabi made the appeal in Port Harcourt, River State capital 

during his visit to Port Harcourt and District Society of ICAN. 

He told members of the district at an interactive forum that the 

springing up of various accounting bodies in the country had 

shown clearly that competition was rife, hence the need for 

aggressive marketing. 

He appealed further that all members should counsel their 

brothers, sisters, children and relatives to embrace accountancy 

as a career and register for ICAN examination either at the ATSWA 

or professional level to become a Chartered Accountant within 

the shortest period of time. 

Speaking on the relationship between the Association of 

National Accountants of Nigeria (ANAN) and Chartered Institute 

of Taxation of Nigeria (CITN), Owolabi said that the entire crisis 

Doyin Owolabi poses with some students of Accountancy 

ANAN Commiserates with ICAN 

Over Plane Crash victims 

ANAN 

Registrar, 

Chief Terkaa 

Gemade 

signing the 

condolence 

register 

at ICAN 

Secretariat 

during his 

condolence 

visit to the 

Institute 

The Association of National Accountants of Nigeria (ANAN) 

has commiserated with the Institute of Chartered Accountants 

of Nigeria (ICAN) over the ill-fated Dana air crash that claimed 

nine members of ICAN and a management staff of the Institute 

on Sunday, 3 rd June, 2012. 

The ANAN team comprised of its Registrar/Chief Executive, 

Chief Terkaa Gemade and its Legal Adviser, Mr. John Amah, 

visited ICAN on Friday, June 8, 2012. While delivering a 

condolence letter to the Registrar/Chief Executive of ICAN, Mr. 

Olutoyin Adepate, on behalf of the President and Council of ANAN, 

Chief Gemade stated that ANAN also lost two of its members to 

the air crash. 

The ANAN Chief executive also used the opportunity to 

congratulate Mr. Doyin Owolabi on his investiture as the 48 th 

President ICAN and tendered apology on behalf of the ANAN 

President for her inability to attend the ceremony. 

He also seized the opportunity of the visit to thank ICAN 

for recommending the Association for IFAC membership. He 

thereafter requested for further necessary support to enable ANAN 

attain full membership of the world accountancy body. 



News 

AWD Pledges Technical 

Support for ICAN 

The Chief Executive Officer of Akintola 

Williams Deloitte, Mr Adeniyi Obe 

has promised that the firm would give 

technical support to the Institute of Chartered 

Accountants of Nigeria (ICAN). He made this 

pledge while playing host to the 48 th President 

of the Institute, Mr. Adedoyin Owolabi and his 

team who paid a courtesy visit to the firm on 

Tuesday, June 3, 2012. 

He also stated that the firm which is one of 

the largest that produce trainees holds it as a 

duty to ensure that anyone who is carrying the 

stamp of the firm is well trained and updated 

technically. He said it is against this back 

drop that the firm maintains the willingness to share its wealth of 

knowledge with those who are willing to tap from it. 

“Keeping knowledge without sharing it translates to waste, 

therefore we are willing to give out technical support to the Institute 

and the profession at large”, he said. 

While addressing the Partners in the firm, Owolabi extolled 

them for their efforts in raising the accountancy profession 

high. He therefore requested for more assistance from the firm, 

ranging from lending technical support to the training of members, 

sponsoring of more of their staff to the Annual Accountants’ 

Conference, giving support in the area of Information Technology 

as well as supporting the ‘Whistle Blower’ Bill being proposed by 

the Institute to the National Assembly. 

The President, Mr. Owolabi, who was referred to as a ‘member 

of the AWD family’ having had his training at the firm before 

qualifying as a Chartered Accountant said he was happy to be at 

the firm as it was among the first firm he promised to visit after 

his investiture. 

International Financial Reporting 

Standards (IFRS). 

Adepate gave this advice 

during a lecture he delivered at a 

3-day Practical IFRS Training for 

lecturers held at NBTE-UNESCO 

Staff Development Training Centre, 

Federal Polytechnic, Ilaro on Tuesday, 

June 26, 2012. 

He noted that the adoption of 

IFRS in Nigeria since January 2012 

has made it extremely important to 

develop capacity in that direction 

because financial reports would be 

prepared using the International 

Financial Reporting Standards (IFRS). 

Furthermore, he said that though 

lecturers were not taught IFRS during 

their student days, they must equip themselves by studying and 

knowing the IFRS with a view to teaching the students so that they 

would be acquainted with the Standards before their graduation. 

The programme Coordinator, Mr. Adebayo Samson noted that 

at the end of the 3-Day practical training programme, participants 

are expected to continuously develop themselves through 

personal study and application of the IFRS. 

ICAN President presenting some ICAN 

publications to the Chief Executive Officer of 

Akintola Williams Delloite 

Fuel Pump Price Hike a Blessing 

in Disguise — Doyin Owolabi 

The 48 th President of ICAN, Mr. Doyin Owolabi has described 

the fuel pump price increase in January 2012 by the federal 

government as a blessing in disguise. Owolabi stated this at the 

2 nd Annual Public Lecture organised by the Chartered Accountants 

Old Accountants, Lecturers Must 

Take Up the Challenges of IFRS 

— Adepate 

The Registrar/Chief Executive of the Institute, Mr Olutoyin 

Adepate has advised the old chartered accountants in practice 

as well as lecturers to take up the challenges of studying the 

ICAN Registrar, Olutoyin Adepate (left); Deputy Rector, 

Federal Polytechnic, Ilaro, Mr F. Babalola; and Rector of the 

Polytechnic, Raheem Oloyo at the IFRS training 

Otunba Lateef Owoyemi, Past President, ICAN and Chairman of the 

occasion (left); Lagos State Commissioner for Finance, Adetokunbo 

Abiru; and ICAN President, Doyin Owolabi at the Annual Public Lecture 

in Lagos State Public Service on Thursday, June 14, 2012 at the 

Lagos Sheraton Hotel, Ikeja, Lagos. 

While delivering his address as the chief host of the occasion, 

he noted that; “the uproar that accompanied the Federal 

Government’s action as well as the probe that followed thereafter 

has revealed a lot of secret corrupt practices going on in the oil 

sector to the common man on the street”. 

The annual lecture with the theme “Accounting and 

Accountability in the Oil and Financial Sectors” was organised 

under the chairmanship of Otunba Lateef Owoyemi, an ICAN 



News 

past president. 

The invited special guest of honour, the Executive Governor of 

Lagos State, Mr. Babatunde Raji Fashola, was represented by Mr. 

Lateef Abari, Permanent Secretary in the office of Head of Service. 

The Ogun State governor, Senator Ibikunle Amosun who was the 

guest speaker, was also represented by the Commissioner for 

Budget and Planning in Ogun State, Mrs. Wande Muoyo. The 

guest lecturers were Dr. (Mrs.) Solabomi Ajibolade, the Head 

of Department, Accounting, University of Lagos and Mr. Peter 

Esele, the Trade Union Congress (TUC) President, represented 

by Comrade Joseph Oshopeghai. 

SCUML Seeks Improved 

Collaboration with ICAN 

The Special Control Unit Against Money Laundering (SCUML), 

an arm of the Economic and Financial Crimes Commission 

(EFCC) which regulates the Designated Non-Financial Institutions 

(DNFIs) has called on the Institute of Chartered Accountants 

of Nigeria (ICAN) for an improved collaboration against sharp 

practices among professionals. 

In a letter titled, “REQUEST FOR A MEETING” earlier sent 

to ICAN, SCUML claimed that “the objective of the meeting was 

to discuss modalities towards achieving compliance of your 

members with the Money Laundering (Prohibition) Act, 2011, in 

the areas of registration with SCUML and rendering Currency 

Transaction Reports (CTRs) and suspicious Transaction Reports 

(STRs) and to solicit your assistance in this regards”. 

Speaking on behalf of her 3-man team, Mrs. Folake Bello 

stated: “SCUML has been finding it difficult getting the DNFIs 

registered as stipulated by the Money Laundering (Prohibition) 

Act, 2011 therefore, ICAN is required to help facilitate how to get 

practice firms registered accordingly”. 

The 48 th President of ICAN, Mr. Doyin Owolabi, appreciated the 

team representing SCUML for the step of collaboration taken. He 

requested the SCUML team to articulate in written form and send 

to the Institute the registration requirements, likely areas where 

ICAN members could fall victim of the law during the discharge 

of their duties as well as include legal documentations backing 

up the exercise. He assured the visiting team of Institute’s firm 

support after all ambiguities have been cleared and also stated 

that SCUML would be invited to address members during the 

“forum of firms” seminar usually organised by the Institute. 

ICAN Assures FRC 

of Support 

T 

he 48 th President of the Institute, 

Mr. Doyin Owolabi has expressed 

the readiness of the Institute to 

support the Financial Reporting 

Council (FRC) in whatever way 

possible to ensure a good working 

relationship. The ICAN President 

gave this assurance during his 

courtesy visit to the Council in 

Lagos, adding that his mission was 

ICAN President, Doyin Owolabi registering with the FRC 

to clarify an issue relating to registration with the Council. 

He said that though the Institute was aware of the statutory 

role of the Council, yet it would like to clarify who was to register 

with it. He said: “We are mindful of the statutory role of FRC and 

we are ready to support it as a regulatory body of the accounting 

profession. However, there are some grey areas we want you to 

shed light on. We want to know who should register, whether as 

corporate entity, individuals or managers”. 

Mr. Owolabi also used the opportunity of the visit to 

congratulate the Executive Secretary of FRC on the smooth 

transition from National Accounting Standard Board (NASB) to 

Financial Reporting Council (FRC) in 2011. 

In his response, Mr. Obaze explained that despite the 

registration of ICAN as a corporate entity, members were 

also expected to register individually. He stressed that ICAN 

membership was crucial as some cardinal provisions in the Act 

called for a closer collaboration between both bodies. He added 

that there were several opportunities and responsibilities for ICAN 

members if they registered with the Council. 

IFAC Recognises PAFA 

... As PAFA Admits ANAN 

The PAN African Federation of Accountants (PAFA) has been 

recognised as a Regional Organisation by the International 

Federation of Accountants (IFAC) based on the recommendation 

from the Compliance Advisory Panel (CAP). 

The recommendation was approved by the Board of IFAC at 

its meeting held in Stockholm, Sweden on June 14-15, 2012. The 

recommendation however will be subject to approval by the IFAC 

Council meeting which has been slated to hold in Cape Town, 

South Africa on November 14-15, 2012. In another development, 

the Pan African Federation of Accountants has announced the 

admission of Association of National Accountants of Nigeria held 

in Tunis, Tunisia on May 2, 2012. 

However, prior to the admission of ANAN into membership 

of PAFA, the 48 th President of ICAN, Mr. Doyin Owolabi had 

assured ANAN of full support until its membership of the World 

Accountancy body, International Federation of Accountants 

(IFAC) and other professional accountancy bodies in the African 

sub-region is achieved. 

The ICAN President made the pledge on Monday, June 18, 

2012, while receiving ANAN members led by its President, Hajia 

Maryam Ladi Ibrahim on a congratulatory 

visit to ICAN President over his investiture 

as the 48 th President of the Institute. 

Hajia Ibrahim also seized the 

opportunity to convey a condolence 

message from Council and entire 

membership of the ANAN to the Institute 

on the loss of some members and a 

Management staff to the ill-fated DANA 

air crash. She appreciated the Institute 

for the due diligence taken at inspecting 

the ANAN training Institute and records 

as part of the mentorship and support 

requirement for IFAC membership. 

While acknowledging that ANAN is a 



News 

younger sister to ICAN which had been in existence since 1965, 

she stated that the Association is always ready to work with the 

Institute in the public interest and the interest of the accountancy 

profession. 

In his response, Doyin Owolabi stated: “we were glad that 

after due diligence on ANAN, ICAN had good news to give the 

public, PAFA, ABWA and IFAC. This was done so that the world 

may acknowledge that ICAN had recommended a sister body 

from Nigeria with due process.” 

Examination Malpractice: 

ICAN Blacklists Three 

Professional Students 

In line with its discipline and zero tolerance for examination 

malpractices, the Institute has blacklisted three students caught 

cheating during May 2012 Professional Examinations. The three 

students are Mr. Uchenna Kelechi Onyema, Mr. Stephen 

Areremi Eseimieghan and Mr. Onyebuchi Henry Okoye. 

On 16 th May 2012, during May 2012 Professional Examinations 

at Port-Harcourt Centre, Onyema was caught with written 

materials related to Corporate and Business Law paper he was 

writing. Eseimieghan was also caught on 15th May, during May 

2012 Professional Examinations at Warri Centre, with some 

pieces of paper related to Financial Reporting and Ethics paper 

he was writing. In his own case, Okoye was caught on 16 th May, 

during May 2012 Professional Examinations at Warri Centre, with 

written formulas at the back of his docket and time table, while 

writing Advanced Audit and Assurance. The formulas were related 

to the paper he was writing. 

After due investigations, the Council of the Institute decided 

that the three students should be blacklisted and banned from 

all the Institute’s examinations. They were deregistered as 

candidates and have all the papers taken during the May 2012 

diet professional examination cancelled. 

KPMG to Partner with ICAN On 

Raising Practice Standard 

The Partner and Head of Audit Services, KPMG Professional 

Services, Mr. Tola Akinyemi, has given assurance to the 48 th 

President of the Institute of Chartered Accountants of Nigeria 

(ICAN), Mr. Doyin Owolabi, on the firm’s willingness to partner with 

the Institute on anything that would raise the practice standard 

in Nigeria. 

Akinyemi gave the assurance while hosting the ICAN President 

who was on a courtesy visit to the firm on Friday, July 27, 2012. 

Speaking on behalf of KPMG, he said: “we are interested in 

working with the Institute on anything that would raise the practice 

standard in Nigeria. One of the key areas we are looking at is 

the setting of a standard on minimum capitalisation and number 

of partners that would be required to set up a practice firm. This 

will go in line with the minimum capitalisation move of the Central 

Bank of Nigeria (CBN) in the banks which has helped in stabilising 

the sector so far”. 

In his own remark, Owolabi noted that apart from being 

part of the President’s official assignment to reach out to ICAN 

stakeholders, the visit was necessitated by the need to encourage 

big firms to show more interest in the Institute’s activities. 

Such activities, according to him, included training and 

technical support to members and students, improved 

participation in terms of membership of Committees, as well as 

facilitation and participation in MCPE & EMCPE programmes. 

Owolabi also used the opportunity to inform and solicit KPMG’s 

support for the Whistle Blowers Bill being proposed by ICAN at 

the National Assembly. He also requested KPMG’s support for 

the Small and Medium Practice (SMP). 

According to him, “one of the ways we can keep our members 

in employment is for the big firms to refer clients with small jobs 

to these SMPs. In order to clear doubts about practice quality, the 

Institute no longer issues practice license to individuals or part 

time practitioners; rather, we encourage merger of firms in order to 

have enough resources and manpower to run standard practice”. 

On the coming Annual Accountants’ Conference, the President 

informed KPMG that the 42 nd Annual Accountants’ Conference 

has been scheduled to hold on October 15 – 20, 2012 in Abuja. 

“We want to once again appreciate your participation in 

the past, however, we still want to ask for more in terms of 

sponsorship, mass attendance of KPMG staff and Partners as well 

as local and international facilitators to present papers at various 

technical sessions”, he solicited. Partners of KPMG in their various 

comments emphasised that the firm was always ready to give all 

necessary assistance to the Institute as and when needed and 

was not thinking of relenting in its effort. 

MISCONDUCT: Cases Before ICAN 

Tribunal, Investigating Panel, 

Investigating Committees 

There are sixty four cases of alleged professional misconduct 

currently pending before the Institute’s Disciplinary Tribunal, 

Investigating Panel, Students’ Investigating Committee and 

Association of Accounting Technician (AAT) Investigating 

Committee. 

Presently, there are twelve cases of alleged professional 

misconduct pending at various stages of hearing before the 

Accountants’ Disciplinary Tribunal while Investigating Panel is 

currently considering forty-five cases. The Students’ Investigating 

Committee is considering five cases referred to it as the 

Association of Accounting Technicians Investigating Committee 

is considering two (2) cases of alleged professional misconduct. 

In order to maintain its integrity and guide against professional 

misconduct, the Institute has a Tribunal that is vested with the 

power of a High Court to prosecute cases investigated and 

referred to it by the investigating panel and impose appropriate 

sanctions on erring members. 

Buried 

Mr. Odofin Daniel Oluyomi (MB 22962), former Vice Chairman 

of Lokoja and District Society. He died in a motor accident 

along Kaduna-Abuja road on 10 th August 2012 and was buried 

on 14 th August 2012. He was survived by his wife and children. 



News 

New Excos for District Societies 

IBADAN 

Alh. Lukman Dauda — Chairman 

Prince G.A. Adebayo — Vice Chairman 

Alh. Ademola Ogunsesan — Secretary 

Timothy Ishola 

— Treasurer 

Tope Babajide (Mrs.) — Asst. Secretary 

Busola Akinbowale (Mrs) — Technical Secretary 

Biodun Adedeji 

— Financial Secretary 

Oyetunji Oyeyemi 

— Social/Publicity Secretary 

Olaitan Falajiki — Ex-Officio 

Prince Bade Oyedepo — IPC 

KANO/JIGAWA 

Denis O. Awa 

— Chairman 

Mary Egbuna (Mrs) — Vice Chairman 

Ado Mohammed Abubakar — General Secretary 

Amusa Tajudeen Adebayo — Treasurer 

Aminu Gambo 

— Financial Secretary 

Abubakar Umar Farouk — Technical Secretary 

Christy Lawal 


Maryam Mukhtar Yola — Asst. Secretary General 

INSTRUCTIONS 

TO AUTHORS 

Authors seeking to have their articles published in The Nigerian 

Accountant are advised to adopt the following guidelines: 

1. Article must be well researched on contemporary issues 

in the field of Accounting, Audit, Investigations and Forensic 

Accounting; Taxation and Fiscal Policy Management; 

Consultancy and Information Communication Technology; 

Insolvency and Corporate Re-Engineering; Public Finance 

Management and Corporate Finance Management; Banking; 

Insurance; Manufacturing; Capital Market; Finance; etc. 

2. All articles should be typed on standard A4 paper and must 

not exceed twenty pages in 12 points font and double spaced. 

3. The title page should include the title and author’s contact 

information (no other page should include author’s information). 

4. The second page should include the title and an abstract 

of not more than 150 words. 

5. The paper must be properly referenced. The American 

Psychological Association style is preferable in the following 

format: 

a) In the text: Author’s name and year of work 

e.g. Lucey (1997) or (Lucey, 1997) at the end of 

sentence. Page numbers must be included for direct 

quotations, e.g. (Lucey, 1997, p.8). 

b) List of references: arranged in alphabetical order in 

the author-date format, e.g. 

Book Reference 

Lucey, T. (1997), Management Information 

Systems (8 th ed.), London: Letts Educational. 

BENIN 

Olaowo 

Eboigbe 

Alhaji Razak Olatunde Olaowo — Chairman 

Mr. Efe Iserhienrhien 

— Vice Chairman 

Mr Sharly-West Uwabor Eboigbe — General Secretary 

Mr Omimi-Ejoo Atu 

— Treasurer 

Mr Clement Osaretin Okoruwa — Financial Secretary 

Mr Abraham Olufola Sunday — Technical Secretary 

Mr Samuel Abada 


Mr Sola Rotimi 

— Asst. General Secretary 

Deacon Sunday Nosa Okundia — Ex-Officio 

Mr Felix Osa Otoide 

— Ex-Officio 

Mrs Sadat A. Abu 

— Ex-Officio 

Journal Article Reference 

Wainer, H. (1997), Improving Tabular Displays: 

With NAEP Tables as Examples and 

Inspirations, Journal of Educational and 

Behavioural Statistics, 22, 1-30. 

Internet Reference 

Baker, F.M. & May, A.J. (2007), Survey 

Research in Accounting. 

Unpublished manuscript retrieved January, 

2008 from http://www.maybaker.org/journals/ 

webref.html. 

Two Hard copies of the paper saved in Microsoft Word 

should be sent to the editor while the Soft copy should be 

forwarded to: 

corporateaffairs@ican.org.ng 

daajigbotosho@ican.org.ng or 

dayoajigbotosho@yahoo.com. 



Events 

2012 ICAN Conference 

Building Enduring Institutions for 

Nigeria’s Development 

All is set for the 42 nd 

Annual Accountants 

conference of the 

Institute of Chartered 

Accountants of Nigeria 

(ICAN) scheduled to take 

place at the International 

Conference Center 

and Sheraton Hotels 

& Towers, Abuja, from 

Monday, October 15 to 

Friday, October 19, 2012. 

The theme is “Building 

Enduring Institutions for 

National Development”. 

According to the 48th 

ICAN President, Mr Doyin 

Owolabi, BSc, MILR, 

FCA, who will deliver the 

keynote address of the 

conference, “Our plan is to assist in building 

enduring institutions for our national development 

and we have put together a team of worldclass 

resource persons, quite a number of 

whom have agreed. I’m also confident that the 

recommendations of the conference will come in 

handy for the Government especially at a time like 

this when workable solutions are being sought for 

the myriads of problems threatening the stability 

of our polity.” 

Chairman of the Conference Committee and 

member of the ICAN Governing Council, Mr 

Tayo Phillips, also expressed the readiness of 

his committee to make this year’s edition of the 

conference unforgettable. Said he: “We are set 

Dankwabo 

Falana 

Annual Accountants Conference Committee at a meeting 

Adepate 

Ezekwesili 

for the conference and for years to come, this 

particular edition of the conference will continue to 

be a reference point in terms of colour and pomp, 

discourse and attendance. Already we have top 

class experts like the Vice President for Africa, 

World Bank, Mrs Obiageli Ezekwesili; Gombe 

State Governor, Alhaji Ibrahim Dankwabo; and the 

legal luminary, Femi Falana (SAN), and an array of 

revered ICAN Past Presidents and others who have 

agreed to be resource persons. There are others 

from outside the country we are still working on to 

bring on board and when we finally get the green 

light about their participation, our stakeholders will 

definitely applaud our choice. The last conference 

was adjudged the best conference so far, but I tell 

you, it will be a child’s play considering 

what we’ll achieve with this year’s 

edition.” 

The Registrar/Chief Executive of 

the Institute, Mr Olutoyin Adepate, 

also disclosed that members of the 

Institute have started registering for 

the conference, adding further: “I have 

no doubt it’s going to be a tremendous 

improvement on the previous editions.” 

While Mrs Ezekwesili and Falana 

will discuss a workshop paper 

entitled “Whistle Blowing: Setting 

a Framework for Corporate and 



Events 

Public Accountability” Mr Peter Bankole, a Director at 

Pan African University will discuss another paper entitled 

“Entrepreneurship: Empowering the Nigerian Youths for 

Global Economic Challenge”. 

Also, Mr Wole Obayomi of KPMG and Mr Fabian Ajogwu 

(SAN) will discuss a paper with the title “Doing Business 

in Nigeria: Fiscal, Legislative and Judicial Challenges” 

while “Financial Reporting and Value Creation in the 

Public Sector: Issues, Challenges and Prospects” is to 

be discussed by Governor Dankwabo, Accountant-General 

of Kwara State, Alhaji T.A. Abdulkareem and Mrs. Oluseyi 

Williams. 

Other papers to be presented at the Conference include 

“Building Enduring Institutions for National Development”, 

“Governance and Sustainable Development: Addressing 

the Leadership Challenges” and the lead paper, “Building 

Trust in Financial 

Report: Meeting 

Stakeholders 

Expectations”. 

Four Past Presidents 

of the Institute in 

persons of Mr Ayo Oni, 

Chief (Mrs) Olutoyin 

Olakunrin, Chief 

Arthur Mbanefo and 

Mr Emmanuel Ijewere 

have also accepted 

to be chairman at the 

various sessions at the 

Conference. 

Aside paper 

presentations, 

workshops, plenary 

sessions, there will 

also be a Conference 

Gala night which will be 

graced by the crème de 

la crème of the Nigerian 

Mr. Tayo Philips, 

Conference Chairman 

society. During the gala night, a Star prize of a brand new 

car will be won at the raffle draw scheduled as part of the 

conference special attractions which also include competitive 

sporting activities like golf, table tennis, swimming, novelty 

football match, lawn tennis, jogging, squash, excursions 

and business exhibitions. Other prizes like LCD television, 

Gas cooker and 10 Galaxy Phones will also be won at 

various times in the course of the conference. Juju music 

icon, King Sunny Ade 

King Sunny Ade 

is billed to entertain the 

conference participants 

comprising seasoned 

professionals, financial 

experts and decisionmakers, 

politicians, 

government officials 

and other guests from 

all walks of life and 

from various parts of 

the world. 



News 

FROM OTHER BODIES 

IFAC Issues New Guidance to 

Help Organisations Improve 

Internal Control 

The Professional Accountants in Business (PAIB) Committee 

of the International Federation of Accountants (IFAC) has 

issued new International Good Practice Guidance, Evaluating 

and Improving Internal Control in Organisations, highlighting 

areas where the practical application of existing internal control 

standards and frameworks often fails in many organisations. 

“Sound internal control practices that are continuously adapted 

to changing circumstances are critical for organisations,” said 

Roger Tabor, chair of the PAIB Committee. “Organisations are 

most successful when they can take advantage of opportunities 

and defend against threats, both of which are enabled by an 

appropriate system of internal control.” 

The new guidance will assist professional accountants in 

business as they work with their organisations to continuously 

evaluate and improve internal control, and ensure that it is an 

integrated part of the organisation’s systems of governance and 

risk management. Better integrated internal controls can save 

the organisation time and money while helping to create and 

preserve value. 

“Organisations need to evaluate and review their internal 

controls at all levels and within all functions to continue to 

achieve their objectives,” said Henny Kapteijn, chair of the PAIB 

Committee’s Risk Management and Internal Control Task Force. 

“A Professional accountant in business, armed with this guidance, 

can help lead his or her organisation through this process to 

ensure ongoing, effective internal control.” 

Jörgen Holmquist Appointed 

First Independent Chair of the 

International Ethics Standards 

Board for Accountants 

The International Federation of Accountants (IFAC) has 

announced that Jörgen Holmquist has been appointed as 

the first independent chair of the International Ethics Standards 

Board for Accountants (IESBA), beginning September 2012 for 

a three-year term. The appointment has been approved by the 

Public Interest Oversight Board. 

“Jörgen brings a wealth of experience to the position of 

independent chair of the IESBA,” said IFAC President Göran 

Tidström. “In his past roles, as well as in his current position as 

a public member of the IESBA, he has shown strong leadership 

skills, technical competence, and a commitment to the IESBA 

and its mission to protect the public interest. I am confident 

that under his leadership, the IESBA will continue to make a 

highly effective contribution to ethics standard setting as well as, 

importantly, adoption and implementation. I would like also to 

acknowledge the exemplary contribution and commitment Ken 

Dakdduk brought to the role, and to his position on the board, 

over the past seven years.” 

Mr. Holmquist has been a public member of the IESBA 

since 2011. He served as 

Director General, DG Internal 

Market and Services, European 

Commission from 2007 to 2010, 

where he was responsible for 

developing the European Union 

(EU) regulatory response to the 

financial crisis, including legislation 

and policy concerning accounting 

and auditing. Before joining the 

European Commission in 1997, 

he served in the Swedish Ministry 

of Finance for twenty years. 

Mr. Holmquist holds a degree 

in Economics and Mathematics 

from the University of Stockholm, 

Sweden and is a Fellow of 

Holmquist 

the Weatherhead Center for 

International Affairs at Harvard 

University. The appointment of an independent chair for the IESBA 

was recommended by the Monitoring Group in its “Review of the 

IFAC Reforms — Final Report,” which was issued in 2010. 

ISRS 4410: The Standard for 

Today’s Compilation Engagements 

Highlighting the Value to SMPs and SMEs 

As more and more smaller entities become exempt from audit 

requirements, small- and medium-sized practices (SMPs) will 

need to focus more on providing other services if their businesses 

are to survive and prosper. In addition, demand for non-audit 

services, in particular accounting and compilation services, is 

growing, as evidenced by the results of recent IFAC SMP Quick 

Polls. 

Helping to meet the demands of this growing market is the 

release in March 2012 by the International Auditing and Assurance 

Standards Board (IAASB) of International Standard on Related 

Services (ISRS) 4410 (Revised), Compilation Engagements, 

effective for compilation reports dated on or after July 1, 2013. 

The IFAC SMP Committee monitored the development of the 

standard and submitted comment letters at all key stages, from 

project proposal through to the release of the final standard. 

The standard, set out in an easy-to-read format, with objectives, 

requirements, and application and other explanatory material, 

can be used by professional accountants in public practice for a 

wide range of engagements for which assurance on the reported 

information is not required. 

Small- and medium-sized entities (SMEs) often turn to 

professional accountants in public practice to provide financial 

reporting expertise. Assistance with preparation of annual 

historical financial statements is one common example. But 

ISRS 4410 (Revised) also provides the necessary flexibility for 



News 

the practitioner to tailor the nature of the engagement to meet 

other needs, for example, the preparation of financial information 

for use by external parties, such as bank lenders, grant funders, 

in connection with a change of ownership, or simply for internal 

use by management. 

A compilation engagement is not an assurance engagement. 

While the practitioner applies accounting and financial reporting 

expertise to assist management with the preparation and 

presentation of financial information, the practitioner is not 

required to verify the completeness or accuracy of the information 

provided by management. However, users will often value the 

involvement of a professional accountant in compiling the financial 

information. 

Let us look in more detail at some of the key features of the 

standard: 

Scope of the Standard 

The standard deals with the practitioner’s responsibilities for 

conducting and reporting on the compilation engagement. The 

issuance of a report, in the format prescribed by the standard, is 

the primary means through which the practitioner’s association 

with the compiled financial information is communicated. 

Recognising that a practitioner’s involvement in assisting 

management with financial information may take many forms, 

the standard also helpfully sets out considerations to help the 

practitioner determine whether its application is appropriate to 

the circumstances. 

Selecting the Basis of Accounting 

SMEs may face a variety of financial reporting demands. 

Therefore, flexibility to use an appropriate basis of accounting is 

needed when an accounting framework is not mandated. ISRS 

4410 (Revised) allows for this, enabling practitioners to help 

clients select a framework that is appropriate for the users of the 

information. 

The standard does not, however, permit an “anything goes” 

approach. In particular, the practitioner is required to have 

sufficient understanding of both the entity and the basis of 

accounting to advise the client if the selected basis of accounting 

is inappropriate for the engagement, and the compiled financial 

information cannot be misleading. 

Communication 

There is a focus on communication throughout the standard: 

from the engagement letter setting out roles and responsibilities, 

to communication of all significant matters to management, to a 

clear and concise practitioner’s report. As with any engagement, 

effective communication is the key to success. 

Financial reporting requires judgment. Management may 

benefit from the practitioner’s assistance in making such 

judgments, for example, in determining estimates for inventory 

obsolescence. The standard requires the practitioner to 

discuss with management all significant judgments for which 

the practitioner has provided assistance in the course of 

the engagement. This communication is essential and must 

include sufficient detail for management to be able to take full 

responsibility for the compiled financial information. 

Ethical Requirements 

The practitioner must comply with relevant ethical requirements, 

and these include not knowingly being associated with materially 

false or misleading information. The requirement for the 

practitioner to understand the entity’s business and operations 

and the basis of accounting sufficiently to perform the engagement 

speaks to that. 

During the compilation, a practitioner may become aware that 

the records, documents, explanations, and other information, 

including significant judgments, are incomplete or inaccurate, in 

which case the practitioner is required to request additional or 

corrected information from management. Likewise, the practitioner 

may become aware of a material misstatement or an inadequate 

description of the basis of accounting in the compiled information, 

in which case the practitioner is required to recommend changes 

to management to rectify the situation. If in the rare circumstance 

management does not provide the additional information or agree 

to the change recommended, then the practitioner would have to 

resign from the engagement in order to avoid being associated 

with information known to be materially false or misleading. The 

practitioner either completes the engagement satisfactorily or else 

the practitioner must resign. 

Note that there is no requirement in ISRS 4410 (Revised) for 

a practitioner to be independent of the client, since the concept 

of independence related to non-assurance engagements is 

not addressed in the International Ethics Standards Board for 

Accountants (IESBA) Code of Ethics for Professional Accountants. 

Reporting 

If a practitioner states compliance with ISRS 4410 (Revised), 

then a practitioner’s report must accompany the compiled financial 

information to help users of the compiled financial information 

understand the nature of the engagement. The report required 

by ISRS 4410 (Revised) clearly identifies the compiled financial 

information, sets out the respective roles of management and the 

practitioner, and states that no assurance is being given. 

Summary 

With the growing demand for non-assurance services, ISRS 

4410 (Revised) provides new opportunities for professional 

accountants in practice and their clients. 

IFAC Opens Debate on Public 

Interest: Issues Policy Position 

Paper 5 

T 

he International Federation of Accountants (IFAC), the global 

organisation for the accountancy profession, issued Position 

Paper 5, A Definition of the Public Interest. A hallmark of the 

accountancy profession is its obligation to act in the public 

interest. But it is not always apparent what this means, and 

how accountants can determine whether they are meeting this 

expectation. IFAC, by developing this position paper, is seeking 

to advance its understanding of this important issue. The paper, 

which presents a practical definition of the public interest, was 

developed in the context of IFAC’s mission, to enable IFAC to 

assess the extent to which its actions and decisions are made 

in the public interest. 

In light of the challenges presented by prevailing market and 

economic conditions, policy makers, regulators, standard setters, 

professional accountants, and others in the financial system are 

examining their roles, responsibilities, and actions; and therefore 

it is timely to consider the basis on which these actions are taken, 

and decisions made. 



IFRS Adoption 

Understanding IFRS: 

The First-Time Adopters 

By 

BEN UKAEGBU 

The world’s accounting standard board has argued that 

the benefits of a global financial reporting framework 

include the following: greater comparability of financial 

information for investors; greater willingness on the part 

of investors to invest across boarders; lower cost of capital; more 

efficient allocation of resources and higher economic growth. 

However, for the above benefits to be realised, there must be 

greater convergence to one set of globally accepted high quality 

standards. The International Financial Reporting Standards 

(IFRS) is growing in acceptance around the world. To date, more 

than 12,000 companies in nearly 100 countries have adopted 

the use of IFRS, including over 40% of the Fortune Global 500. 

In Nigeria, companies will adopt IFRS for the first time in 2012 

and the purpose of this article is to explain the guideline for first 

time adopters. 

When countries accept IFRS for use as accepted accounting 

policies, companies need guidance to ensure that their first IFRS 

financial statements contain high-quality information. Specifically, 

IFRS 1 requires that information in a company’s first IFRS 

statements (a) be transparent, (b) provide a suitable starting point, 

and (c) have a cost that does not exceed the benefits. 1 

The overriding principle in converting from national generally 

accepted accounting principles (GAAP) to IFRS is full retrospective 

application of all IFRS. Retrospective application – recasting prior 

financial statements on the basis of IFRS – provides financial 

statement users with comparable information. However, it is 

recognised that full retrospective application may be difficult in 

some situations, particularly when information related to past 

periods is not readily available. In response, guidelines have 

been established to ensure that financial statement users have 

high-quality comparable information while balancing the costs 

and benefits of providing comparable data. 

GENERAL GUIDELINES 

The objective of the conversion process is to present a set of 

IFRS financial statements as if the company had always reported 

on IFRS. To achieve this objective, a company must: 

(a) Identify the timing for its first IFRS statement; 

(b) Prepare an opening statement of financial position at 

the date of transition to IFRS; 

(c) Select accounting policies that comply with IFRS, and 

apply these policies retrospectively; 

(d) Consider whether to apply any optional exemptions 

and apply mandatory exemptions; 

(e) Make extensive disclosure to explain the transition to 

IFRS. 

WHAT ARE RELEVANT DATES 

The relevant dates are the transition and reporting dates. The 

transition date is the beginning of the earliest period for which full 

comparative IFRS information is presented. The reporting date is 

the closing statement of financial position date for the first IFRS 

financial statement. Exhibit A provides an illustration: 

Exhibit A 

Assume Bayo & Ahmed Plc, plans to provide its first IFRS 

statement for the year ended December 31, 2013 and decides 

to present comparative information for one year only. Its date of 

transition to IFRS is January 1, 2012, and its reporting date is 

December 31, 2013. 

The timeline for first-time adoption is presented as Exhibit B 

Exhibit B 

________________________________________________ 

----- Last Statements ----- 

Under Prior GAAP 

Comparable PeriodFirst IFRS Reporting Period 

--------------------- IFRS Financial Statements ---------------------- 

Date of Transition Beginning of First Reporting Date 

(Opening IFRS IFRS Reporting 

Statement of Period 

Financial Position) 

January 1, January 1, December 31, 

2012 2013 2013 

------------------------------------------------------------------------------------ 

Exhibit B shows the following: 

1. The opening IFRS statement of financial position for Bayo 

& Ahmed Plc on January 1, 2012 serves as the starting 

point (date of transition) for the company under IFRS. 



IFRS Adoption 

2. The first full IFRS statements are shown for the company 

for December 31 2013. In other words, a minimum of two 

years of IFRS statements must be presented before a 

conversion to IFRS occurs. As a result, the company 

must prepare at least one year of comparative financial 

statements (for 2012) using IFRS. 

3. Bayo & Ahmed Plc presents financial statements in 

accordance with its national GAAP annually to 2012. 

Following the above conversion process, Bayo & Ahmed Plc 

provides users of their financial statements with comparable 

IFRS statements for 2012 and 2013. 

IMPLEMENTATION STAGES 

Initial IFRS Statement of Financial Position 

As already indicated, to start the conversion process, 

companies must first prepare an opening IFRS statement of 

financial position. This process involves the following stages: 

1. Include all assets and liabilities that IFRS requires; 

2. Exclude any assets and liabilities that IFRS does not 

permit; 

3. Classify all assets, liabilities, and equity in accordance 

with IFRS; 

4. Measure all assets and liabilities according to IFRS 2 . 

The completion of the above process requires knowledge 

of both the prior GAAP used and IFRS. Exhibit C provides 

illustration: 

Exhibit C 

Bayo & Ahmed Plc is preparing to adopt IFRS. It is preparing 

its opening statement of financial position on January 1, 2012. 

The company identified the following accounting policy differences 

between IFRS and the national GAAP it currently uses. Under 

national GAAP, Bayo & Ahmed Plc: 

1. Expenses development costs of N500m on a project that 

had met economic viability; 

2. Does not make a provision for a warranty of N20m 

because the concept of a “constructive obligation” was 

not recognised; 

3. Does not capitalise design fees of N10m into the cost 

of machinery that was put into service at the beginning 

of 2010, even though those costs were necessary to 

bring the asset to its working condition. The machinery 

has a 5-year life, no residual value, and the company 

uses straight-line depreciation. 

The question is how should Bayo & Ahmed Plc treat the above 

items in its Opening IFRS statement of financial position 

Solution: 

1. IFRS allows the deferral of development costs in this 

case the company should capitalise these costs; 

2. IFRS requires recognition of a warranty provision, so a 

liability should be recorded; 

3. Under IFRS, all costs incurred in bringing an asset to its 

place and condition for its intended use are capitalised 

into the cost of the asset. 

Adjustments as a result of applying IFRS for the first time are 

generally recorded in Retained Earnings. Bayo & Ahmed Plc 

makes the following entries on January 1, 2012 to adjust the 

accounts to IFRS treatment. 

Development Costs (or Related 

intangible Asset) 

Retained Earnings 

(to capitalise development costs) 


Warranty Liability 

(to recognise warranty liability) 

N500m 

N20m 

Equipment 

N10m 

Accumulated Depreciation – Equipment 


(to recognise cost of machinery) 

N500m 

N20m 

N2m 

N8m 

In each of these situations, Bayo & Ahmed Plc adjusts retained 

earnings for the differences between IFRS and national GAAP to 

ensure that the opening statement of financial position is reported 

in accordance with IFRS. 

After recording these adjustments, Bayo & Ahmed Plc prepares 

its opening IFRS statement of financial position. The January 1, 

2012 statement of financial position is the starting point (the date 

of transition). Subsequently, in 2012 and 2013 Bayo & Ahmed Plc 

prepares IFRS financial statements internally. At 31 December 

2013, it will formally adopt IFRS. 

EXEMPTIONS FROM RETROSPECTIVE TREATMENT 

In some cases, adjustments relating to prior periods cannot 

be determined. In other cases, it may be impracticable to provide 

comparable information because the cost of generating the 

information far exceeds the benefits. The International Accounting 

Standard Board (IASB) provides ‘targeted’ exemptions from the 

general retrospective treatment where it appeared appropriate. 

In this situation, two types of exemptions are available – required 

and elective. 

Required Exemptions 

IASB identifies three areas in which companies are prevented 

from retrospective application in first-time adoption of IFRS. 

These are: Estimates; Hedge Accounting and Non-controlling 

Interests. These required exemptions are imposed because 

implementation of retrospective application in these areas 

generally requires companies to obtain information that may not 

be readily available. In these cases, companies may have to 

re-create information about past transactions with the benefit of 

hindsight 3 . For example, retrospective application with respect 

to non-controlling interests requires information about conditions 

and estimates made at the time of mergers and acquisitions – an 

often difficult issue. 

In the case of Estimates, IFRS 1 prohibits the use of hindsight 

to adjust estimates made under previous GAAP unless there is 

objective evidence of an error. A company can only adjust the 

estimates made under previous GAAP only when the basis of 

calculation does not comply with IFRS. 

Elective Exemptions 

In addition to the required exemptions discussed above, IASB 

identified specific additional areas in which companies may elect 

exemption from retrospective treatment. These exemptions 

provide companies some relief from full retrospective application. 

This simplifies the preparation of the first-time IFRS statements. 



IFRS Adoption 

Some of these areas* are: 

(a) Share-based payment transactions; 

(b) Fair value or revaluation as deemed cost; 

(c) Leases; 

(d) Employee benefits; 

(e) Compound financial instruments; 

(f) Fair value measurement of financial assets or financial 

liabilities at initial recognition; 

(g) Decommissioning liabilities included in the cost of 

property, plant, and equipment; 

(h) Borrowing costs. 

* Other exemptions areas: (1) Business combinations, (2) Insurance 

contracts; (3) Investment in subsidiaries, jointly controlled entities and 

associates (4) Designation of previously recognised financial instruments; 

(5) Financial assets or intangible assets accounted for as Service 

Concession Arrangements; and (6) Transfers of assets from customers. 

Optional exemption from retrospective treatment is 

understandable for certain situations. The accounting for the 

areas identified above generally requires a number of estimates 

and assumptions at initial recognition and in subsequent 

accounting. Depending on the accounting under existing GAAP, 

the information necessary for retrospective may not be available, 

or may be obtained only at a high cost. We discuss two examples 

of the elective exemptions – Fair Value or Revaluation as 

Deemed Cost and Compound Financial Instruments. 

Under Fair Value or Revaluation as Deemed Cost, a company 

can elect to measure property, plant, and equipment at fair value 

at the transition date and use that fair value as its deemed cost in 

accounting for those assets subsequent to the adoption of IFRS. 

This exemption may also be applied to intangible assets in certain 

situations. By using the exemption, a company avoids recreating 

depreciation records for property, plant and equipment, a costly 

and time consuming exercise for many companies. 

In providing this exemption, IASB noted that reconstructed 

cost data might be less relevant to users, and less reliable, than 

current fair value data. It was the board’s decision that it would 

allow companies to use fair value as deemed cost. A company that 

applies the fair value as deemed cost exemption is not required 

to revalue the assets subsequent to first-time adoption. 4 

As regards Compound Financial Instruments, IFRS requires 

splitting the debt and equity components of convertible debt, using 

the ‘with and without’ approach. Convertible Debt is regarded as 

a compound instrument because it contains both a liability and 

an equity component. The subsequent accounting for the debt 

element reflects effective-interest amortisation on the estimated 

debt component. However, if the liability component is no longer 

outstanding at the date of first-time adoption, retrospective 

application involves separating two portions of equity. The 

first portion is in retained earnings and represents cumulative 

interest accredited on the liability component. The second 

element represents the original equity component. Since the 

company would not have records on the debt once it is no longer 

outstanding, it would be costly and perhaps time consuming 

to recreate that information for retrospective application. 

Consequently, a first-time adopter need not separate these two 

portions if the liability component is no longer outstanding at the 

date of transition to IFRS. 

PRESENTATION AND DISCLOSURE 

Upon first-time adoption of IFRS, a company must present at 

least one year of comparative information under IFRS 5. To comply 

with the Standard, a company’s first IFRS financial statements 

shall include at least three statements of financial position, two 

statements of comprehensive income, two separate income 

statements, two statements of cash flows and two statements 

of changes in equity and related notes, including comparative 

information. Companies are required to explain how the transition 

from previous GAAP to IFRS affected its reported financial 

position, financial performance and cash flows. 

A company’s first IFRS financial statements shall include 

reconciliations of: its equity reported in accordance with previous 

GAAP to its equity in accordance with IFRS at the transition date; 

its total comprehensive income in accordance with IFRS to total 

comprehensive income in accordance with previous GAAP for 

the same period. The reconciliation should be prepared for latest 

period in the company’s most recent annual financial statements 

under the previous GAAP. 6 

CONCLUSION 

As Nigerian companies embrace themselves for IFRS firsttime 

adoption, the directors must ensure that financial statement 

users receive high-quality information in order to compare 

financial statements prepared under IFRS and previous GAAP. 

IFRS guidelines are designed to ensure that upon first-time 

adoption, financial statements are comparable and that the 

costs and benefits of first-time adoption are effectively managed. 

However, while many accounting policies will be derived from 

IFRS standards and guidelines, in some cases, knowing how to 

apply those standards may not be obvious and may be subject 

to different interpretations. Because IFRS is principles-based 

rather than rule-based and less prescriptive than previous national 

GAAP, there may be a wider range of acceptability under IFRS in 

certain areas. For these reasons, preparers of financial statements 

will need to be able to put more emphasis on the exercise of 

professional judgement to faithfully report on the economic 

substance of their business entity as investors are best served 

when financial reports are clear and easy to understand and use. 

NOTES AND REFERENCES 

1. International Financial Reporting Standard 1, First-time 

Adoption of International Financial Reporting Standards 

(London, U.K.; IASB, 2003) par 1. 






(London, U.K.; IASB, 2003) par BC 22B. 



(London, U.K.; IASB, 2003) par D5 – D8 and BC41 – BC47. 







* Dr. Ben Ukaegbu Lectures at the Business School, 

London Metropolitan University. 



Opinion 

BY TAIWO OYEDELE 

CITA Exemption and VAT Act (Modification) Orders: 

So that investment in debt instruments may be tax free... 

In March 2010, the Federal Government 

through the Debt Management Office 

announced the approval by the Federal 

Government of Nigeria to grant tax waivers 

for all categories of bonds (including corporate 

bonds) and short term government securities 

such as treasury bills. The announcement also 

included a reduction in stamp duties for re-issue 

of previously executed debentures to 20% of the 

stamp duty payable on a new debenture. 

Unfortunately, the declaration made in 

2010 was at best a statement of intent which 

can only take effect subject to administrative 

and legislative processes required to give the 

necessary legal backing. 

Furthermore, the President in the 2012 

Budget Speech delivered to the National 

Assembly in December 2011 again stated 

government’s intention to grant tax waivers on 

all bonds and debt instruments issued by all tiers of government and 

corporate entities. 

Subsequently, the Personal Income Tax Amendment Act 

2011 (“PITA Amendment”) was gazetted in January 2012 with a 

commencement date of 14 July 2011. The PITA Amendment provides 

the required legal backing to the tax waiver for persons liable to tax 

under the PITA only. To ensure that all investors benefit from the 

incentive regardless of their legal status, the President and the Minister 

for Finance have now issued a Companies Income Tax Exemption 

Order and a Value Added Tax (Modification) Order respectively. The 

Orders which were recently gazetted both have commencement dates 

of 2 January 2012 exempting income and proceeds from the disposal 

of debt securities from income tax and VAT. 

Before the PITA Amendment and the CITA gazette, the Local 

Loans (Registered Stock and Securities) Act of 1946 (as amended) 

empowers the Minister of Finance to issue bonds specifying the 

notional amounts, coupon rates, maturity dates and also specify the 

tax exemptions to be accorded such bonds. 

The exemption granted by the Local Loans Act does not cover most 

debt securities such as Treasury Bills (“T-Bills”), state government 

bonds; and corporate bonds were taxable. However, Section 30 of 

the Capital Gains Tax Act LFN 2004 provides exemption from capital 

gains tax (“CGT”) on the disposal of Nigerian Government securities 

(including Federal, State and Local government bonds), stocks and 

shares. Although the scope of the CGT exemption is broad, it does not 

provide sufficient cover as it is only useful where the income earned 

is considered of a capital nature rather than revenue or trading profit. 

The PITA Amendment effective from 14 July 2011 exempts from 

personal income tax bonds issued by Federal, State and Local 

governments and their agencies; bonds issued by corporate and 

supra-nationals (including organisations like the world bank, Africa 

Development bank); and interest earned by holders of these bonds 

and securities. 

The new CITA gazette grants exemption to companies on their 

trading income from corporate and government bonds, treasury bills 

and other short term securities. In this regard, there should also be 

no withholding tax although this is not specifically stated but can be 

inferred given that withholding tax is an advance payment of income 

tax except where it is deemed to be a final tax. 

Previously, proceeds from disposal of debt instruments have not 

been subject to VAT in practice. The basis for this is that the Nigeria’s 

The danger is that the 

exemption may create 

a situation where an 

investing company will 

have more distributable 

profit than taxable profit 

thereby becoming liable 

to tax upon redistribution. 

This makes the exemption 

an illusion rather than 

reality and may lead to 

mispricing of investment 

in such debt instruments. 

VAT law imposes VAT on the supply of goods 

and services and this may not be extended to 

such instruments as they are neither goods 

nor services. In addition to this, the Federal 

Inland Revenue Service (“FIRS”) also issued 

Information Circular No. 9503 in 1995 where they 

took the position that capital investments and 

returns on capital should not be subject to VAT. 

The new VAT gazette exempting disposal of 

bonds and other debt securities from VAT could 

therefore have far reaching implications to the 

effect that it could be inferred that VAT was 

previously applicable. Also, at the expiration of 

the 10-year VAT exemption period, there is a 

high possibility that the tax authorities will seek to 

impose VAT on disposal of bonds and T-bills. The 

newly published VAT exemption Order will only 

become relevant if the new VAT law currently 

being drafted for consideration by the National 

Assembly which seeks to VAT such transactions is enacted into law. 

One key area of difference between the PITA Amendment and the 

CITA gazette regarding the tax exemption on bonds is that the PITA 

exemption is not time-bound unlike the CITA exemption which is only 

for 10 years. Similarly, it is not clear if the commencement date stated 

in the gazettes refers to year of assessment or to basis period. It is 

also uncertain whether the exemption will only apply to instruments 

issued after the commencement date or whether it will apply to all 

income accruing after the period including those on instruments issued 

prior to the exemption. In my view, the exemption period should be 

with reference to basis period and should cover all income accruing to 

investors effective from the commencement date regardless of when 

the instrument was issued. There is therefore a need for investors to 

track the flow of income from relevant securities and exclude income 

earned during the exemption period from tax. This should include 

exemption from withholding tax deduction. However, by implication, 

any expense incurred in earning the exempt income will not be tax 

deductible such as broker fees. 

More importantly, as a result of the tax exemption, issuers are 

likely to offer and investors are likely to accept a lower interest rate 

than they would without the tax exemption. The danger is that the 

exemption may create a situation whereby the income earned may 

be taxed upon redistribution by the investing company in the form of 

dividend to its shareholders given that the company will have more 

distributable profit than taxable profit. This potentially creates an 

excess dividend tax exposure at 30%. Where this happens it will nullify 

the effect of the exemption thereby leading to possible mispricing of 

the investment. It is clearly against the principles of a good tax system 

to grant a tax waiver with one hand and then subject the income to 

tax on another hand. 

Overall, the tax waiver will reduce the tax burden for investors 

especially individuals but corporate investors need to consider the real 

tax cost and effective tax rate of their investments in bonds and other 

debt securities in view of the potential excess dividend tax exposure 

and non deductibility of related cost of the investment. Without this, 

such investors are likely to misprice their investment based on the 

illusion of income tax exemption and consequently be in a worse 

position under the exemption regime. 

* Taiwo Oyedele is a Partner in the Tax and Corporate Advisory 

Services Unit of PwC Nigeria and a regular paper presenter on 

professional tax matters. 



Conference 

Economic Transformation: ICAN Calls for 

Transparency in Financial Reporting 

The Federal Government has 

been called upon to encourage 

greater financial reporting 

transparency if the nation’s ailing 

economy is to be truly revived. In 

this regard, Nigeria’s full adoption of 

IFRS is adjudged to be a step in the 

right direction. 

This advice is contained in the 

Communiqué issued at the end 

of the 7 th Eastern Zonal Districts 

Accountants’ Conference of the 

Institute of Chartered Accountants 

of Nigeria (ICAN) held at the Matho 

Crystal Hotel, Yenagoa, Bayelsa 

State between July 17 and 20, 2012. 

The theme of the conference was 

“Good Governance: A Panacea for 

Economic Transformation” 

The participants also agreed that 

economic transformation required the 

strengthening of existing institutions 

and creation of new ones which should come with a more enduring 

framework. They posited that, in the process, the chartered 

accountant would be further challenged, and should therefore 

not give away any opportunity to demonstrate and create value. 

The Conference believed that too much power was concentrated 

at the center and it should be devolved to the federating units so 

that the desperate struggle to be at the center will be reduced. 

In order to ensure 

political stability 

and cohesion, 

participants said 

that there should be 

a well-defined and 

all-inclusive political 

arrangement that 

would allow for 

greater participation 

Professor Pat Utomi and Mr. Owolabi 

during the conference 

of all ethnic 

nationalities. 

Not only that, 

they canvassed a leadership training programme that would 

encompass all levels of government and the political class to 

ensure an effective leadership process that would take integrity, 

courage and vision into account. 

The participants viewed deregulation as an important tool to 

restructure the economy for transformation and recommended 

selective application of it in a manner that would be mindful of 

the more vulnerable in the society. “Subsidy is a socio-economic 

tool meant to correct the inequalities in the system. Where 

there is need to withdraw subsidy, such should be matched 

ICAN President, Doyin Owolabi and Bayelsa State Deputy 

Governor, Rear Admiral John Jonah (retd.) at the ICAN 

Eastern District Conference opening 

by a corresponding sustainable 

social security policy that addresses 

the inequities that exists in the 

Nigerian society despite its abundant 

resources,” the communiqué stated. 

Declaring the conference open, 

the Governor of Bayelsa State, Hon. 

Henry Seriake Dickson said that 

Chartered Accountants should move 

closer to governments at all levels 

and offer advice to them on financial 

policy formulation. 

The governor who was represented 

by his deputy, Rear Admiral 

Gboribiogha John Jonah (retd.) stated 

that Chartered Accountants had been 

wonderful and useful to governments 

in the past and should not stop such 

collaborative effort. While disclosing 

that Bayelsa had produced more 

than 100 Chartered Accountants, 

the Governor assured participants 

at the conference that the state would not rest on its oars to 

produce more on yearly basis. He also gave the assurance that 

the communiqué issued after the conference would be useful to 

Government as a guide in taking certain decisions. 

In his keynote address, the ICAN President, Mr. Adedoyin 

Idowu Owolabi congratulated the organising committee for putting 

together the conference which was aimed at critically looking at 

various ways good governance could be used as a panacea for 

economic transformation. He noted further that good governance 

in its political, social and economic dimensions underpinned 

sustainable human development and the reduction of poverty. 

“Good governance is important for economic development not 

ICAN Presidency & Council members pose with Accountancy 

students of Niger Delta University after an interactive forum 



Conference 

only for creating the right economic environment but also 

for adopting a clear development vision that stipulates the 

strategic choices that define the economic paradigm the 

government would adopt,” he said. 

While declaring the Conference closed, the ICAN 

President reiterated the need for an inspired leadership 

imbued with the right mindset and vision that would easily 

secure the commitment of the citizenry, as a vital factor for 

the achievement of economic transformation. 

Bayelsa State Deputy 

Governor, Rear Admiral 

John Jonah (retd.) 

and ICAN Presidency 

and Council led by 

Doyin Owolabi, 48th 

ICAN President, after 

ICAN Eastern District 

Conference opening 


Communiqué 

of the 7 th Eastern Zonal Districts Annual Accountants’ Conference 

PREAMBLE 

The 7th Eastern Districts Annual Accountants’ Conference 

of the Institute of Chartered Accountants of Nigeria was held at 

Matho Crystal Hotel, Yenagoa between July 17 and 20, 2012. 

The theme of the conference was “Good Governance – A 

Panacea for Economic Transformation.” Good governance 

which is characterised by political stability, transparency and 

strong institutions is the driving force for economic development. 

The conference theme was therefore chosen to guide the current 

leadership in that direction. 

PARTICIPATION 

The President of the Institute of Chartered Accountants of 

Nigeria, Mr. Doyin Owolabi, FCA led a very powerful delegation 

from the Presidency and Council of the Institute to the 

conference that included the Vice President, Alhaji Kabir Alkali 

Mohammed; 1 st Deputy Vice President, Mr. Chidi Ajaegbu, FCA; 

immediate Past President of ICAN, Prof. Francis Ojaide, FCA; 

twelve Council members and the Registrar/Chief Executive. 

The Executive Governor of Bayelsa State, His Excellency, 

Hon. Seriake Dickson was ably represented by the Deputy 

Governor, His Excellency Rear Admiral John Jonah (retd.). A 

total of 250 (Two hundred and fifty) chartered accountants were 

in attendance. 

ISSUES AND RECOMMENDATIONS 

During the 3-day conference, four papers were delivered 

by eminent scholars and professionals. The highly 

interactive sessions reached the following conclusions and 

recommendations: 

1. Economic transformation requires strengthening of 

existing institutions and/or creation of new ones which should 

come with a more enduring framework. In the process the 

chartered accountant will be further challenged, and should 

therefore not give away any opportunity to demonstrate and 

create value. 

2. Foreign Investors react positively to economic 

transformation if there is greater financial reporting transparency 

in all sectors of a nation’s economy. Nigeria’s full adoption of 

IFRS is therefore a step in the right direction. 

3. There is too much power concentrated at the center and 

it is the view of this conference that there should be greater 

devolution of these powers to the federating units so that the 

desperate struggle to be at the center will be reduced. 

4. Participants agreed that to ensure political stability and 

cohesion, there should be a well-defined and all inclusive political 

arrangement that allows for greater participation of all ethnic 

nationalities (federating units). 

5. To ensure an effective leadership process that takes into 

account integrity, courage and vision, there should be leadership 

training and cultural re-orientation that embraces all levels of 

government and the political class. 

6. There should be reforming institutions of integrity that 

should reinforce and strengthen corruption deterring institutions 

like the EFCC, ICPC and the judiciary generally. 

7. Deregulation is an important tool to restructure the 

economy for transformation, but it should be selectively applied 

in a manner that takes account of the more vulnerable in the 

society. 

8. Participants noted that subsidy is a socio-economic tool 

meant to correct the inequalities in the system. Where there 

is need to withdraw subsidy, such should be matched by a 

corresponding sustainable social security policy that addresses 

the inequities that exist in the Nigerian society despite its 

abundant resources. 

9. Participants agreed that there is a culture of impairing 

the independence of the statutory auditors and accountants 

in their control and reporting functions due to unnecessary 

interferences. 

CONCLUSION 

In conclusion, the participants agreed that there is an urgent 

need to restructure the relevant institutions and regulations to 

institute a culture of good governance in order to facilitate the 

economic transformation agenda of government. An inspired 

leadership imbued with the right mindset and vision will easily 

secure the commitment of the citizenry which is a vital factor for 

the achievement of economic transformation. 



Presentation 

Challenges to the Chartered Accountant 

In Economic Transformation 

By 

JIM OSAYANDE OBAZEE 

Economic transformation is a time of re-negotiation. 

Negotiation, itself, is a balance between collaboration and 

competition. During periods of economic transformation, 

economic institutions are strengthened and new ones 

created. 

Economic Institutions are institutions set up to persuade the 

legal foundations of an economy. They dictate what individuals 

must or must not do (duty), what they may do without interference 

from other individuals (privilege), what they can do with the 

aid of the collective power (right) and what they cannot expect 

the collective power to do in their behalf (restrictions). These 

institutions are imposed but expected to produce induced 

institutions as outcomes. 

These institutions are under the control of those entities 

charged with the task of common good (Executive, Legislature 

and Judiciary). The entities, themselves, issue set of rules with the 

object of paramentarising individual and behaviour in particular 

realms of economic activity. 

During periods of economic transformation, economic 

institutions (strengthened and new) may issue rules. In response to 

these new instrumental rules of the economy, induced institutional 

arrangements will then be worked out in a manner consistent with 

the general parameter set up by these exogenous institutions. 

These induced responses are the working rules that may challenge 

the Chartered Accountant in economic transformation in Nigeria. 

The outcome will be change at work and correlated evolved 

behavioral patterns. 

THE CHARTERED ACCOUNTANT AS AN ECONOMIC 

TRANSFORMER 

A country’s accounting and disclosure system is part of its 

financial system and more generally its institutional infrastructure. 

Economic theory suggests that, in well-functioning economies, the 

elements of the institutional infrastructure evolve to fit and reinforce 

each other. Thus, the accounting system is likely to be geared 

towards the informational and contracting needs of the key parties 

in the economy. For this reason, it is important to understand the 

role of financial accounting in a country’s institutional infrastructure 

and, in particular, its role in corporate governance and capital 

markets. Thus, a key question in evaluating an accounting system 

is whether it satisfies the needs of the economy’s main contracting 

parties and, in the context of financial systems, whether the 

relevant financing parties are well informed. 

How an entity presents information in its financial statements 

is vital because financial statements are a central feature of 

financial reporting — a principal means of communicating 

financial information to those outside an entity. Operational arms 

of Financial Reporting Council, especially those charged with 

Accounting Standards including the IASB, have all initiated 

projects on financial statements presentation to address users’ 

concerns that existing requirements permit too many alternative 

types of presentation and that information in financial statements 

is highly aggregated and inconsistently presented, making it 

difficult to fully understand the relationship between the financial 

statements and the financial results of an entity. 

CHALLENGES TO THE CHARTERED ACCOUNTANT IN 

ECONOMIC TRANSFORMATION 

I am approaching this by giving brief discussions of the role of 

volitional pragmatism in institutional change. I shall then attempt 

to describe and elaborate on the core pragmatic commitments 

of Nigeria’s recent institutional transformation and describe few 

implications thereto. On each of the issues, I shall attempt to look 

at the role of the Chartered Accountant in fostering that desired 

change. 

1. CHALLENGES ARISING FROM GLOBAL MARKET 

ASSESSMENT 

At the global level, growth in business services is driven by 

several key long-term trends. The Chartered Accountant of today 

must think of how he can fit into this model. 

Globalisation and Outsourcing: Organisations continue 

to adopt global sourcing strategies to increase efficiency by 

leveraging low-cost labour in emerging economies. Nigeria indeed 

is part of this globalisation. In recent times a number of Nigerian 

companies have raised capital from international stock markets; 

others have established significant presence in other jurisdictions. 

Also, a good number of Nigerian entities hold the securities of 

non-Nigerian issuers. Therefore, for a better understanding and 

appreciation of the risks and consequently making decisions 

about the flow of economic capital, it make sense that financial 

statements prepared in Nigeria use global financial reporting 

benchmarks. These global impositions expect induced actions 

from the Chartered Accountant. 

Sustainability: Climate change and the shift towards a lowcarbon 

economy are driving growth in a number of areas, including 



Presentation 

energy and waste management, urban planning, smart buildings 

and renewable energy; Environmental accounting will require 

induced actions from the Chartered Accountant. 

IT-enabled Services: Advances in IT-enabled technologies 

will continue to spur demand for business services, such as data 

centres, business process outsourcing and cloud-computing 

services. Accounting software shall be reconfigured to embrace 

this change. 

Rise of Social Media: The advent of Web 2.0 and explosion of 

social media will create demand for services such as IT consulting, 

systems integration and creative services. There is a change in 

age which will affect the work force of the Chartered Accountant. It 

is estimated that 50% of the World population are under 30 years 

and 80% of companies are now recruiting using social media. This 

will put a lot of pressure on the Chartered Accountant to understand 

the importance of growing high performance environments, to 

learn skills and tools to grow teams, to be an authentic self and 

apply the learning and the required skills. 

Public Sector Efficiency: In the context of a challenging 

economic climate, calls for greater efficiency and transparency 

in the public sector are increasing demand for business services 

across governments. 

2. CHALLENGES ARISING FROM THE ECONOMIC 

TRANSFORMATION AGENDA OF THE NIGERIA 

STATE 

The transformation agenda is planned for between 2011 

and 2015, which is tenure in the present administration and it is 

necessitated by the need to correct the flaws in the country’s drive 

for development where there is absence of long-term perspective, 

and lack of continuity, consistency and commitment (3Cs) to 

agreed policies. This government believes that the culminating 

effect of these has been growth and development of the Nigerian 

economy without a concomitant improvement in the overall welfare 

of Nigerian citizens. 

To the administration, the disregard for these 3Cs has resulted 

in rising unemployment, inequality and poverty and it is therefore 

hard pressed to come with a holistic transformation of the Nigerian 

state with a strategy that gives cognizance to these 3Cs in the 

duration of the administration. 

Government based the Transformation Agenda and draws 

its inspiration from the Vision 20:2020 and the first National 

Implementation Plan (NIP) according to the summary of federal 

key priority policies, programmes. It aims to deepen the effects 

and provide a sense of direction. The agenda is based on a set 

of priority policies and programmes which, when implemented, 

would transform the Nigerian economy to meet the future needs 

of the people. 

Macroeconomic Framework and Economic Direction 

Government is projecting a baseline GDP growth rate of 11.7 

per cent per annum for the period 2011-2015, as it hopes that it 

will translate to real and nominal GDP of about N428.6 billion and 

N73.2 trillion respectively at the end of the programme period. 

It assumes that the projected GDP growth of the period will be 

driven largely by the oil and gas, solid minerals, agriculture, ICT 

equipment and software, telecommunication, wholesale and retail 

trade, tourism and entertainment, manufacturing and building and 

construction sectors. 

A total investment of N40.75 trillion in nominal terms is also 

projected for the period. The public sector will account for N24.45 

trillion or 60 per cent, while the remaining N16.30 trillion or 40 

per cent is expected to be invested by the private sector. Overall, 

public sector investment plan is made up of N11.59 trillion for 

states and local governments respectively. 

The key policies to be pursued by government during the 

programme period are as follows: 

a) Ensuring greater harmony between fiscal and monetary 

policy. In this regard, the National Economic Management Team 

will be strengthened to facilitate effective coordination of fiscal 

and monetary policies. 

b) Pursuit of sound macroeconomic policies, including fiscal 

prudence supported by appropriate monetary policy to contain 

inflation at single digit. 

c) The budget process shall be reviewed to provide greater 

clarity of roles between the executive and legislature and to ensure 

that the appropriation bill is enacted into law within the first month 

of any year. The direction of policy shall draw inspiration from the 

US system and concentrate on setting allocation priorities rather 

than micro-budgeting or contesting figures with the executive. 

d) The existing revenue allocation formula shall be reviewed 

to achieve a more balanced fiscal federalism. This is expected to 

pave the way for more effective implementation of programmes 

at the sub-national level. 

e) Institutionalising the culture of development planning at all 

levels of government and ensuring that the annual capital budget 

allocation takes a cue from medium and long term development 

plans. Towards this end, government is requesting the National 

Assembly to expedite the passage of the Planning and Project 

Continuity Bill in order to strengthen the Plan-Budget link and 

reduce the high incidence of abandoned projects. 

Job Creation 

Government will pursue certain policy measures to reinvigorate 

various sectors of the economy and enhance their employment 

generating potentials, including implementing a youth employment 

safety net support programme that includes conditional cash 

transfer and vocational training; development of industrial clusters; 

reviewing of university curricular to align with industry job 

requirements and promotion of apprenticeship/work experience 

programmes and joint ventures; enforcement of mandatory subcontracting 

and partnering with locals by foreign construction 

companies and implementation of mandatory skills transfer to 

Nigerians by foreign construction companies. 

Public Expenditure Management 

Government is concerned that the sub-optimality of the 

expenditure profile of the Federal Government of Nigeria since 

1999 has seen recurrent spending consistently crowded out 

capital expenditure, exacerbating the already abysmal state of 

infrastructure. Recurrent expenditure has fluctuated between 

47.5% in 1999 to 80.29 per cent in 2003, while capital expenditure 

accounted for only 19.71 per cent of total government expenditure. 

It notes that it has since increased continually to a high of 

38.37 per cent of total expenditure in 2009. It has grown much 

worse in 2011 with government borrowing to finance recurrent 

expenditures. To remedy the situation, under the transformation 

agenda, government will entrench a culture of accountability 

by beginning to sanction and prosecute officers that breach 

established financial management rules and regulations. The 

monetisation policy will also be strictly enforced. 

Governance 

The Transformation Agenda’s policies on governance 



Presentation 

are motivated by Nigeria’s inability to decisively tackle most 

development challenges such as poverty, unemployment, 

security and deplorable state of infrastructure. These include 

political governance, economic governance, corporate 

governance and effectiveness of institutions. During the 

life of this administration, the policies and programmes directed 

at addressing governance challenges, will focus on the public 

service; security, law and order; the legislature; anti-corruption 

measures and institution; the judiciary; economic coordination 

and support for private investment. The critical policy thrust of 

governance will be to maximise the benefits the citizenry derive 

from governance through more effective and efficient use of public 

resources, proper financial management and fiscal prudence. This 

entails adequate emphasis on the attainment of law and order, 

guarantee of safety of lives and property and the provision of 

an environment in which people find happiness and fulfillment. 

Justice and Judiciary 

The policy thrusts of the justice and judiciary sector will be 

achieving greater independence for the judiciary in terms of 

funding, improving capacity and efficiency in judicial service 

delivery, eliminating all forms of corruption in the administration 

of justice in Nigeria, enhancing the capacity of the justice ministry 

to superintend prosecution and improving professionalism in legal 

practice for better service delivery. 

Foreign Policy and Economic Diplomacy 

Nigeria’s foreign missions are to be properly focused and well 

funded in order to meet the foreign policy goals of the country. 

Government may rationalise missions and appoint honorary 

consuls to deal with consular issues in areas where Nigeria’s 

interest does not loom large as practiced by other countries. 

Legislature 

Under the planned period, the thrust of the policy will be to 

facilitate the creation of a dynamic, constitutionally effective and 

public responsive legislature that is proactive in its legislative duties 

and independent but aware of its constitutional partnership with the 

executive and judicial arms of government. Other policy measures 

include regular auditing of the activities and publication 

of annual reports of the national and state legislatures to 

promote greater transparency and accountability in the use of 

public funds; promote greater public interest in the scrutiny 

of legislative actions; and inform public debate to these ends. 

Attention will be paid to human capital development policies, 

programmes and projects because of government’s belief that 

investing in human capital development is critical. 

Education 

Under Priority Policies for the Development of Education, the 

administration will promote primary enrolment of all children of 

school-going age, irrespective of the income profile of the policies; 

engage in the provision of infrastructure such as classrooms 

across all levels, so as to ease over-crowding, increase access 

and reduce pupil/teacher ratio; and enhance the efficiency, 

resourcefulness and competence of teachers and other education 

al personnel through training, capacity building and motivation. 

Health Sector 

For the health sector, the underpinning policy for the inputs 

towards achieving the human capital development goal of 

the Vision 20:2020 strategy is the National Strategic Health 

Development Plan (NSHDP). The NSHDP is the vehicle for actions 

at all levels of the health care delivery system which seeks to foster 

the achievement of the MDGs and other local and international 

targets and declaration commitments. 

Labour and Productivity 

Here, the agenda is to focus on the implementation of the 

National Action Plan on Employment Creation (NAPEC) targeted 

at creating five million new jobs annually within the next three years, 

establishment of more skills acquisition centres; implementation 

of local content policy in all the sectors, especially in the oil and 

gas industry in order to boost job creation in the country. 

The transformation agenda also provides for Key Policies for 

the Real Sector under the plan period. Its policies for developing 

the seven growth drivers are agriculture and food security, 

manufacturing, and oil and gas. Under agriculture and food 

security, apart from securing food and the food needs of the 

country, government will enhance generation of national and 

social wealth through greater export and import substitution, 

enhance capacity for value addition leading to industrialisation 

and employment opportunities, and ensures efficient exploitation 

and utilisation of available agricultural resources; and enhance 

the development and dissemination of appropriate and efficient 

technologies for rapid adoption. 

Under manufacturing, the agenda seeks to promote private 

sector investments through the creation of an enabling environment 

that allows for substantial improvement in efficiency, productivity 

and profitability, significantly increase local manufacturing local 

content and linkages with other sectors of the economy, 

ensure global competiveness for manufactured goods, make 

Nigerian manufactured goods major foreign exchange earners and 

achieve rapid and sustained economic growth through broadening 

of the nation’s productive base. 

In oil and gas, the focus will also be on the promotion of private 

sector investment in both the upstream and downstream activities 

of the oil and gas, deregulation of the industry and promotion of 

environmentally friendly oil and gas exploration and exploitation 

methods; strengthening capacity building programmes especially 

in core technical areas; provision of funding mechanisms for 

pre-bidding geosciences and surveys of deepwater offshore, gas 

flare-down to reduce pollutions and increase supply for domestic 

use and power generation, and local content development. 

Infrastructure Policies, Programmes and Projects 

Government will seek to address the infrastructure deficit in the 

country in key development areas such as power, transportation, 

housing, Information Communication Technology (ICT), Federal 

Capital Territory (FCT) and Niger Delta. The Transformation 

Agenda stresses the critical importance of these areas in the 

national development. Between 2011 and 2015, key priority 

policies will be pursued to develop infrastructure and consequently 

engender sustained growth and development in the country. 

Power 

Government envisages that the total proposed investment in 

the power sector during the period is about N1, 896 trillion. This 

will cover investments in four areas of power generation, 

transmission, distribution and alternative energy. This 

expenditure aims at increasing generation and transmission 

capacity in order to provide adequate and sustainable power, 

intensifying rural electrification efforts in a more efficient manner; 

and achieving optimal energy mix using the most appropriate 



Presentation 

technology. 

The strategies to be adopted in achieving these include creating 

a deregulated and competitive electric power sector to attract 

foreign and local investments; ensuring a viable commercial 

framework for the electric power sector including a tariff regime 

that promotes transparency, guarantees security of investments 

and a reasonable rate of return on investments; ensuring the 

transmission capacity and providing redundancies in the 

transmission system so as to ensure a fully integrated network 

that minimises transmission losses while strengthening grid 

security. 

Information and Communication Technology 

The proposed investment for the ICT sector between 2011 and 

2015 is N22.2 billion. The agenda will focus on the development 

of a national Knowledge Based Economy (KBE) 10-year Strategy 

Plan, sustained human capacity development in ICT; creation of 

a favourable and friendly investment and enterprise environment 

through transparency in tax systems, anti-trust laws, incentives and 

trade policies that would stimulate local and foreign investments 

in ICT, as well as development of infrastructure, particularly global 

connectivity as a prerequisite to leveraging the benefits of the 

global economy, improving domestic productivity and attracting 

foreign investments. Other strategies are: creation of an enabling 

environment through appropriate policies, legal, regulatory and 

institutional frameworks and enhancing Public-Private Partnership 

(PPP) in project funding, financing and management. 

Niger Delta 

As for Niger Delta, the proposed investment in the region 

during the Plan period is N335.05 billion. The main policy thrust 

will be to entrench peace and stability to drive sustainable socioeconomic 

development in the area with the aim of reducing the 

high incidence of poverty, high rate of unemployment and high 

level of insecurity. 

Transportation 

Government expects total investment for the transport sector 

during the period 2011-2015 to be approximately N4,465 billion. 

The investment would cover roads, railways, inland waterways, 

ports and airports development. The main policy thrust during the 

Plan period is to evolve a multimodal, integrated and sustainable 

transport system, with greater emphasis on rail and inland 

waterways transportation. An enabling environment for Public- 

Private Partnership (PPP) is being created by designing new 

policies, legislation and institutional framework that would support 

the envisaged transformation of the sector. 

The transformation agenda’s key priority projects are derived 

from 20 Ministries, Department and Agencies (MDAs) and sectors 

where a total of 1613 projects were identified, out of which 385 

are new while 1361 are ongoing. 

The Chartered Accountant is expected to repackage his or 

her self and induce an action in all of these proposals of the 

Nigeria state. 

3. CHALLENGES ARISING FROM FINANCIAL 

REPORTING COUNCIL AS AN ECONOMIC 

INSTITUTION 

The Financial Reporting Council of Nigeria (FRC) is a unified 

independent regulatory body for Accounting, Auditing, Actuarial, 

Valuation and Corporate Governance practices in public and 

private sectors of the Nigerian economy. The body, established 

by FRC Act No. 6, 2011, is also to address current institutional 

weaknesses in regulation, compliance and enforcement of 

Standards and the development of robust arrangements for 

monitoring and enforcing compliance with financial reporting 

standards in Nigeria. 

The implementation of the FRC Act, 2011 will lead to increased 

management credibility, more long-term investors, lower cost 

of capital, improved access to new capital and higher share 

values. For investors and lenders, better disclosure provides more 

relevant information for making sound investment decisions and 

risk assessment respectively. 

The Financial Reporting Council operates through Directorates; 

each for Private Sector Accounting, Public Sector Accounting, 

Auditing, Actuarial, Valuation, Inspection and Corporate 

Governance. 

► Trend In Accounting 

Three key objectives for financial statement presentation state 

that information should be presented in the financial statements 

in a manner that: 

Portrays a cohesive financial picture of an entity’s 

activities 

A cohesive financial picture means that the relationship 

between items across financial statements is clear and that an 

entity’s financial statements complement each other as much 

as possible. 

Disaggregates information so that it is useful in 

predicting an entity’s future cash flows 

Financial statement analysis aimed at objectives such as 

assessing the amount, timing, and uncertainty of future cash flows 

requires financial information that is disaggregated into reasonably 

homogeneous groups of items. If items differ economically, users 

may wish to take that into account differently in predicting future 

cash flows. 

Helps users assess an entity’s liquidity and financial 

flexibility 

Information about an entity’s liquidity helps users to assess an 

entity’s ability to meet its financial commitments as they become 

due. Information about financial flexibility helps users to assess 

an entity’s ability to invest in business opportunities and respond 

to unexpected needs. To give effect to this, the FRC is opening 

the IFRS Academy and given effect to the Federal government 

decision on the adoption of International Financial Reporting 

Standards, by a three-year phased transition programme effective 

January 1, 2012. 

► Trend in Public Sector Accounting 

Governmental accounting systems organised and operated 

on a fund basis consists of different structures of funds. A fund 

is defined as a fiscal and accounting entity with a self-balancing 

set of accounts recording cash and other financial resources, 

together with all related liabilities and residual equity or balances 

and changes therein, which are segregated for the purpose of 

carrying on specific activities or attaining certain objectives in 

accordance with special regulations, restrictions or limitations. 

I will like to draw your attention to some basic facts in financial 

reporting by government Ministries, Departments and Agencies. 

There are three categories of funds used in governmental 

accounting: Governmental Funds (used by Ministries/ 

Departments), Proprietary Funds (used by Agencies) and 



Presentation 

Fiduciary Funds (used by Agencies with relevant laws dictating 

financial reporting structures). 

Government departments are established and maintained to 

provide community services which are primarily centered on the 

collection of revenues, the distribution of funds, the enforcement 

of laws, the administration of expenditure; programmes aimed at 

variety of social and economic goals. Government departments 

are the traditional means through which the executive aims to 

implement its policies. They provide services paid for by revenues 

raised through various forms of levies. 

It is important to note however, that the revenue of government 

departments comes primarily from parliamentary appropriations 

rather than from sales. This means that unlike private or commercial 

entities: 

— The ongoing viability and solvency of departments are 

determined by the will of the National Assembly to continue 

funding, rather than their ability to earn net returns; 

— The future vulnerability of departments is not a function of 

their financial structure, but is more dependent upon the 

success of programmes and activities in meeting policy 

objectives; 

— Capacity for adaptation may not be relevant to the 

departments as they may be subject to restrictions on 

buying and selling assets on their own behalf and are not 

at liberty to change the nature of their activities; and 

— They may hold administered revenues and expenses; 

items of revenues not used to run the department but 

held and administered on behalf of the government or 

another government entity. 

In the preparation of public sector financial statements by 

government departments therefore, the underlisted should be 

considered: 

— Departmental revenues and expenses by programmes 

(including administered revenues and expenses by 

programmes); 

— Departmental cash flows (including administered cash 

flows); 

— Schedule of commitments (departmental and administered); 

— Schedule of contingencies (departmental and administered); 

and 

— Transactions by fund. 

Governments and Public Sector Entities (PSEs) of the 

developed part of the world which were once using Cash-Basis 

of Accounting are now rapidly moving towards Accrual-Based 

Accounting System. Some of these countries have not only 

implemented the full Accrual-Based Accounting but have also 

adopted International Public Sector Accounting Standards 

(IPSASs) for compilation of government accounts and financial 

reporting. 

► Trend in Regulation and Policy: 

Registration of Professionals, Inspection of 

Accounting Firms and Assurance Providers 

All supervisory action is dependent on financial reporting. As 

such, bullet points of certain provisions of the FRC Act, 2011 

may promote the understanding of the Chartered Accountant in 

specific areas. These are: 

• Corporate Governance Issues 

• Section 50 

The objectives of the Directorate of Corporate Governance 

shall be to: 

(a) Develop principles and practices of corporate governance; 

(b) Promote the highest standards of corporate governance; 

(c) Promote public awareness about corporate governance 

principles and practices; 

(d) On behalf of Council, act as the national coordinating body 

responsible for all matters pertaining to corporate governance; 

(e) Promote sound financial reporting and accountability based 

on true and fair financial statements duly audited by competent 

independent Auditors; 

(f) Encourage sound systems of internal control to safeguard 

stakeholders’ investment and assets of public interest entities; 

and 

(g) Ensure that audit committees of public interest entities keep 

under review the scope of the audit and its cost effectiveness, the 

independence and objectivity of the auditors. 

• Section 7 (2) 

(f) Require management assessment of internal controls, 

including Information Systems controls with independent 

attestation; 

(g) Require code of ethics for financial officers and certification 

of financial statement by Chief Executive Officer and Chief 

Financial Officer; 

(h) Require entities to provide real time disclosures on material 

changes in financial conditions or operations; and 

(i) Pronounce forfeiture, by Chief Executive Officers and Chief 

Financial Officers, of certain bonuses received from the company 

and profits realised from the sale of company shares owned by 

them, where the company is required to prepare an accounting 

restatement. 

• Section 44(3) 

Where the directors disclose the extent of compliance with 

Code of Corporate Governance in the annual report, require 

an auditor to report separately whether the disclosure is 

consistent with the requirements of the Code. 

• Section 11 

(e) Harmonise activities of relevant professional and regulatory 

bodies as relating to Corporate Governance and Financial 

Reporting. 

• Registration of Professionals 

• S. 41 

(1) The Council shall maintain a register of professionals. 

(2) A person shall not hold any appointment or offer any 

services for remuneration as a professional for public 

interest entities, unless he is registered under this Act. 

(3) A person who wishes to be registered shall make a written 

application to the Council in a prescribed form. 

(4) An application made under subsection (2) of this Section 

shall be accompanied by such fees and such information 

as the Council may from time to time determine. 

(5) Where the Council is satisfied that the applicant holds 

a practicing certificate, the Council shall enter the name 

of the registered professional and such particulars as it 

considers relevant, in the Register of Professionals. 



Presentation 

(6) A person who contravenes subsection (2) of this section 

commits an offence and is liable on conviction, to a fine 

not exceeding N500,000.00 or to imprisonment for a 

term not exceeding 6 months or both. 

• Inspection of Accounting Firms and Assurance 

Providers 

• S. 60 

The Council, or any officer authorised by it, in writing may 

review the practice of an auditor and may, for that purpose: 

(a) Inspect any relevant book, document and record in the 

possession, or under the control of the auditor, his partner or 

employee and make copies of, or take any abstract of, or extract 

from any such book, document and record in relation to a company 

under investigation subject to the consent of the public interest 

entity; and 

(b) Seek information or clarification from any partner or 

employee of the professional. 

• S. 61 (1) 

Annual quality reviews (inspections) shall be conducted for 

professional accountants that audit more than 20 public interest 

entities; all others shall be conducted every three years and 

the Council may order a special inspection of any professional 

accountant at any time. 

Other issues bearing on the Chartered Accountant in this 

direction include: 

1. Retention of work-paper for 6 years [S. 61.2]. 

2. Require that a professional accountant in the exercise of 

his audit function, carry out his function independently and not: 

— Act in a manner contrary to the code of conduct and 

ethics that may be made by the council or under any 

enactment in force; 

— Engage in any activity which is likely to impair his 

independence as a professional [S.46] 

3. Sanctions for obstruction of inspectors. N500,000 and/or 

6 months imprisonment [S. 63.2]. 

4. Require evidence of a second partner review and audit 

approach that registered professional accountants adopted on 

quality control [S. 61(3)]. 

5. Power to Investigate or cause to be investigated: 

— Any breach of the code of conduct and ethics by any 

registered professional. 

— Any material irregularity notified to it [S. 62]. 

— Every public interest entity, professional or professional 

accountant shall produce any relevant book, record or 

document (hard or electronic) in their or under their 

control to the Council where the Council is conducting an 

investigation [S. 62 (3)]. 

6. Review of financial statements and reports of public interest 

entities. 

7. Receive qualified reports together with detailed explanations 

for such qualifications within 30 days from the date of such 

qualification. Such reports shall not be announced to the public 

until all accounting issues relating to the reports are resolved by 

the Council [S. 8 (n)]. 

8. (S 59). The accounts, financial reports or annual returns 

and other documents required under the following Acts, or 

amendments thereafter, shall be adopted for that purpose by 

the Council: 

— Banks and other Financial Institutions (Amendment) 

Act CAP. B3 LFN, 2004. 

— Companies and Allied Matters Act Cap. C20 LFN, 2004. 

— Investments and Securities Act Cap. I24 LFN, 2004. 

— Insurance Act Cap. 117 LFN, 2004. 

— Pension Reform Act No. 2, 2004. 

— Federal Mortgage Bank of Nigeria Act, Cap. F16 

LFN, 2004. 

Where there is any conflict between the financial reports or 

annual returns and other documents required or prepared in 

fulfillment of the relevant Sections of the Acts listed above and 

other Acts which deal with financial reporting, the standards and 

guidelines adopted for that purpose by the Council shall to the 

extent of the inconsistency, prevail. 

CONCLUSION 

Foreign Investors are reacting positively to economic 

transformation in Nigeria including the country’s movement 

towards IFRS adoption as they expect application of IFRS to 

have positive cash flow effects. These effects could include 

reduced contracting costs or reduced scope for managerial rent 

extraction associated with greater financial reporting transparency. 

And provide convergence benefits. Foreign investors may react 

negatively to movement towards IFRS if, for example, they 

believed that IFRS would decrease financial reporting quality. 

This could occur if investors believed that IFRS would fail to 

either adequately reflect regional differences in economies or 

accommodate countries’ differing political and economic features 

that hitherto led to existing differences in domestic accounting 

standards. 

Alternative Enforcement Environment/Legislative changes 

which are imposed and expected to induce actions include the 

enactment of the Financial Reporting Council of Nigeria Act No. 

6, 2011. This gave legal provisions that support implementation 

of IFRS in Nigeria to promote institutional reforms that is also to 

affect the Chartered Accountant positively. 

The Chartered Accountant is expected to re-consider the 

habit of asking questions and apologising for having a point of 

view. During economic transformation, a Chartered Accountant 

should not give away any opportunity to demonstrate value. 

Power players take charge, they take initiative. During period of 

economic transformation, the Chartered Accountant should not 

ask for permission to make a contribution! 

LIST OF REFERENCES 

1. DiMaggio, P. and W. Powell (1983), “The Non Cage 

Revisited: Institutional Isomorphism and Collective 

Rationality in Organisational Field.” 

2. FASB Newsletter, May 2008, “Understanding the Issues: 

Some Facts About Fair Value.” 

3. Irvine, H. (1999), “Money and Mission: Who’s 

Counting” An institutional approach to expectation of accounting 

in a religious organisation within a changing environment. PhD 

theses, University of Wollongong, Australia. 

4. Financial Reporting Council of Nigeria Act No. 6, 2011. 

* Jim Osayande Obazee, the Executive Secretary/Chief 

Executive Officer, Financial Reporting Council, Nigeria, 

presented this Paper at the Institute of Chartered Accountants 

of Nigeria (ICAN) Eastern Districts Conference at Yenogoa, 

Bayelsa State. 



Features 

Evaluating and Improving 

Internal Control in Organisations 

By 

VINCENT TOPHOFF 

The Professional Accountants in Business (PAIB) Committee 

of the International Federation of Accountants (IFAC) has 

issued new International Good Practice Guidance (IGPG), 

Evaluating and Improving Internal Control in Organisations, 

highlighting areas where the practical application of existing 

internal control standards and frameworks often fails in many 

organisations. 

This new guidance is important to a professional accountant 

in business who works with his/her organisation to continuously 

evaluate and improve internal control, and ensure that internal 

control is an integrated part of the organisation’s systems of 

governance and risk management. 

In this guidance, internal control is defined as “an integral part 

of an organisation’s system of governance and ability to manage 

risk, which is understood, effected, and actively monitored by 

the governing body, management, and other personnel to take 

advantage of the opportunities and to counter the threats to 

achieving the organisation’s objectives.” Better integrated internal 

control can save the organisation time and money, and promote 

the creation and preservation of value. 

At the heart of the IGPG are nine key principles for evaluating 

and improving internal control systems (see Key Principles) 

complemented by guidance on how to implement them. Questions 

that the guidance is designed to help answer are: 

What should be the scope of internal control 

Who should be responsible for internal control 

• How should controls be selected, implemented, and 

applied 

• How can internal control be better ingrained into the 

DNA of the organisation 

• 

How should the organisation report on internal control 

performance 

Evaluating and improving internal control are among the core 

competencies of many professional accountants in business. 

Therefore, professional accountants can play a leading role 

in ensuring that internal control forms an integral part of an 

organisation’s governance system and risk management. With 

an integrated, organisation-wide approach to risk management 

and internal control, professional accountants in business also 

encourage the practice that risks be viewed and treated in a more 

holistic way; that is, with improved internal control. 

The guidance concludes with a limited list of relevant resources 

from IFAC, its member bodies, and other relevant organisations. 

It can be downloaded free of charge from www.ifac.org/paib. 

Key Principles of Evaluating and Improving 

Internal Control 

The principles below represent good practice for evaluating 

and improving systems for internal control. 

(a) Internal control should be used to support the organisation 

in achieving its objectives by managing its risks, while complying 

with rules, regulations, and organisational policies. The 

organisation should therefore make internal control part of risk 

management and integrate both in its overall governance system. 

(b) The organisation should determine the various roles 

and responsibilities with respect to internal control, including 

the governing body, management at all levels, employees, and 

internal and external assurance providers, as well as coordinate 

the collaboration among participants. 

(c) The governing body and management should foster an 

organisational culture that motivates members of the organisation 

to act in line with risk management strategy and policies on internal 

control set by the governing body to achieve the organisation’s 

objectives. The tone and action at the top are critical in this 

respect. 

(d) The governing body and management should link 

achievement of the organisation’s internal control objectives 

to individual performance objectives. Each person within the 

organisation should be held accountable for the achievement of 

assigned internal control objectives. 

(e) The governing body, management, and other participants 

in the organisation’s governance system should be sufficiently 

competent to fulfill the internal control responsibilities associated 

with their roles. 

(f) Controls should always be designed, implemented, and 

applied as a response to specific risks and their causes and 

consequences. 

(g) Management should ensure that regular communication 

regarding the internal control system, as well as the outcomes, 

takes place at all levels within the organisation to make sure that 

the internal control principles are fully understood and correctly 

applied by all. 

(h) Both individual controls as well as the internal control 

system as a whole should be regularly monitored and evaluated. 

Identification of unacceptably high levels of risk, control failures, 

or events that are outside the limits for risk taking could be a 



Features 

Legal Matters 

sign that an individual control or the internal 

control system is ineffective and needs to be 

improved. 

(i) The governing body, together with 

management, should periodically report to 

stakeholders the organisation’s risk profile as 

well as the structure and factual performance 

of the organisation’s internal control system. 

About International Good Practice 

Guidance 

International Good Practice Guidance 

(IGPG) issued by the PAIB Committee 

cover areas of international and strategic 

importance in which professional accountants 

in business are likely to engage. In issuing 

principles-based guidance, IFAC seeks to 

foster a common and consistent approach 

to those aspects of the work of professional 

accountants in business not covered by 

international standards. IFAC seeks to clearly 

identify principles that are generally accepted 

internationally and applicable to organisations 

of all sizes in commerce, industry, education, 

and the public and not-for-profit sectors. 

Previously issued IGPG are available on the 

IFAC website, including Preface to IFAC’s 

International Good Practice Guidance. 

About the PAIB Committee 

The PAIB Committee serves IFAC 

member bodies and professional accountants 

worldwide who work in commerce, industry, 

financial services, education, and the public 

and the not-for-profit sectors. Its aim is 

to promote and contribute to the value of 

professional accountants in business by 

increasing awareness of the important roles 

professional accountants play, supporting 

member bodies in enhancing the competence 

of their members, and facilitating the 

communication and sharing of good practices 

and ideas. 

About IFAC 

IFAC is the global organisation for the 

accountancy profession dedicated to serving 

the public interest by strengthening the 

profession and contributing to the development 

of strong international economies. IFAC is 

comprised of 167 members and associates in 

127 countries and jurisdictions, representing 

approximately 2.5million accountants in public 

practice, education, government service, 

industry, and commerce. 

* Mr. Vincent Tophoff is Senior Technical 

Manager, International Federation of 

Accountants. 

CONTEMPT OF COURT 

If you are guilty of contempt of Court you may be sent to prison. It is therefore 

important to know what this means and how somebody may indeed be in risk of 

contempt of Court. Contempt of Court is essentially where somebody is deemed 

to have interfered with the administration of justice. This may take several forms but 

each of them will result in justice itself not being properly carried out. It is for this 

reason that contempt of Court is seen as such a serious offence and which results 

in possible prison sentences. 

By committing contempt of court you are betraying the entire justice system. Given 

the serious nature, if you have been accused of such an offence you should contact 

a Solicitor immediately. 

Examples of Contempt of Court 

A recent example of what could constitute contempt of Court would be revealing 

somebody’s identity that had been protected by the Courts. A number of high profile 

celebrities have recently used super injunctions to prevent the press publishing 

stories about them. Where a super injunction has been granted, the particular Judge 

has clearly felt that the individual’s privacy should be protected and therefore has 

granted the injunction. If a particular newspaper were to then publish a story naming 

the individual with the benefit of the super injunction, then they could be deemed to 

be in contempt of court and face possible imprisonment. 

Another example, which is usual with the American legal system, would be if you 

were called to partake in jury service. As a member of the jury you will often, at the 

end of a trial, be sent to a room to deliberate over the case and then finally vote as 

to whether the particular defendant is guilty or not guilty. Deliberations in the jury box 

are confidential and must not be disclosed to anybody other than a fellow member 

of the jury. If, for example, you serve as a member of a jury and then after you leave 

the jury room you inform somebody else 

‘ 

what was said in the jury room or who 

voted which way, you are in breach of 

Court and may be sent to prison. 

Statement of Truth 

The issues in relation to contempt 

of Court are important to understand 

because often somebody will be asked 

by his lawyer to sign a document known 

as “Statement of Truth”. This will often 

be at the bottom of an individual’s 

statement in Court proceedings. 

Contempt of Court is 

essentially where somebody 

is deemed to have interfered 

with the administration of 

justice. It is seen as a serious 

offence which results in 

possible prison sentences. 

Given that statements will be used in every type of law imaginable, it is quite likely 

that you may one day have to complete one of these. A statement of truth is signed 

by an individual who is stating that everything in his or her statement is true. If this 

later turns out to be incorrect, and the individual knew it was incorrect at the time of 

signing the statement, then he can be sent to prison for contempt of Court. 

Upholding Justice 

The law uses the notion of contempt of Court to uphold justice. If, using the above 

examples, somebody could break a super injunction without being punished, reveal 

secrets of a jury, or lie on a statement of truth, then super injunctions would hold no 

power whatsoever, members of a jury could be intimidated and not vote according 

to their genuine belief, and witness statements could be completely false. 

When these examples are placed together it is clear as to why contempt of Court is 

so important, because it allows the Courts to operate in a way that promotes justice. 

It is for that reason that contempt of Court carries a possible prison sentence. 

* Culled from www.findlaw.com 

‘ 



Investiture 

ICAN Will Support 

Government 

with Policy 

Recommendation 

— Owolabi 

The 48 th President of the Institute of Chartered 

Accountants of Nigeria (ICAN), Mr Doyin 

Owolabi has promised that the Institute will 

continue to support Nigerian government with policy 

recommendations to move the country forward. 

Owolabi who made the promise in his 

inaugural speech during his investiture in Lagos 

on Wednesday, 30 th May, 2012, also affirmed 

that accountancy profession remains the beacon of hope for 

the Nigerian nation, even in the face of challenges of peaceful 

democratic transition at all levels of governance. 

“We must rebuild the waning confidence of stakeholders in 

our non-negotiable public interest mandate. We will continue 

to cooperate with and support the government through the 

submission of policy recommendations and share our expertise 

in optimum resource management with persons with governance 

responsibilities at all levels,” he said. 

“We intend to be actively involved and indeed, be on the 

driving seat of the process for the renaissance of our nation’s 

value systems. We will continue to expose 

ethical compromises and sanction deviants 

whose conduct, which, if not checked, 

can demean and bring the hard-earned 

and towering goodwill/image of the 

Accountancy Profession to disrepute. As 

professionals, we must stand up and be 

counted on the side of equity and justice 

both in words and in actions.” 

“In an era in which the economic 

prosperity and clout of any nations are 

inextricably bound to their degree of 

adherence to universally accepted ethical 

values, the Accounting Profession in 

Nigeria, as in other parts of the 

world, must continue to lead 

the crusade for transparency 

and accountability in 

governance. In fact, never 

before has so much premium 

been placed on the expertise 

and integrity of the Chartered 

Accountant by society and 

the business community in 

resource management and 

security of assets”. 

“At such a momentous time 

in the lives of corporate entities 

Kabir Mohammed, New President Doyin Owolabi, Chidi Ajaegbu and Prof. Francis Ojaide 

Doyin Owolabi with some Past Presidents of the Institute 

and the nation, the Accounting Profession cannot afford to falter. 

Make no mistake: criminals are now becoming more ingenious 

and scientific in their approaches to fraud and related crimes. As 

professionals, we must be many steps ahead of them such that 

criminals are precluded from benefitting from their crimes”. 

“Thus, as we step up our strategic capacity building efforts 

in the areas of Investigations, Digital Audit, Fraud and Forensic 

Accounting, we will continue to partner with other professional 

bodies and agencies of government to rid the nation of corruption, 

sharp and unethical practices. As seasoned professionals, we will 

continue to walk our talk by proactively delivering on our mandate 

as the conscience of the nation”. 

“Pursuant to this, we would, during 

the year, prepare and present a 

Whistleblower’s Bill to the National 

Assembly for consideration and 

passage as part of our contributions 

to the fight against corruption. We 

would step up aggressive campaigns 

to enforce compliance with subsisting 

legislations designed to promote 

accountability in governance like 

the Nigerian Extractive Industries 

Transparency Initiative (NEITI) Act 

2007, the Fiscal Responsibility Act 

The 48th President being sworn in on Investiture day 

ICAN President with the Council members 



Investiture 

Doyin Owolabi’s daughters and his father-in-law, Dr. Michael O. Omolayole 

2007, the Public Procurement Act 2007, Freedom of Information Act 2011, 

Financial Reporting Council (FRC) of Nigeria Act 2011, Money Laundering 

(Prohibition) Act, 2011, etc”. 

Declaring the theme of the Presidential year as Building a Solid 

Structure on a Sound Foundation: Quo Vadis ICAN, Owolabi 

explained that his focus would be on how to improve on the existing 

system for the benefit of all stakeholders. 

“Without doubts, we inherited an enviable legacy and an institution 

founded on the best global 

values of excellent service 

delivery in the public 

interest. Thus, during the 

year, using our professional 

expertise and intellectual 

scholarship, we will redefine 

the best values 

of our profession and 

defend our audit franchise 

in our strategic desire to 

ICAN President with SWAN members 

ICAN President with some Clergymen 

deliver greater value to 

stakeholders”. 

“In my view, after 47 

years of existence and 

impressive achievements, 

the dynamics of the Institute 

and membership mix have 

changed very significantly 

and to be on top of our 

game, we need to know 

where the Institute is in the 

developmental sequence. 

We need to question 

existing fundamental 

assumptions; we need to 

re-appraise our strategies and chart a new path, for unusual situations 

demand unusual actions/solutions.” 

Also elected to serve with Owolabi for the next one year were: Alhaji 

Kabir Alkali Mohammed, mni, FCA as the Vice President; Mr. Chidi 

Onyeukwu Ajaegbu, ACS, MBF, FCA, as First Deputy Vice President; 

and Otunba Olufemi Deru, FCA, as Second Deputy Vice President. 

Deacon Titus Alao Soetan, FCA was appointed the Honorary Treasurer 

of the Institute. 

INAUGURAL 

ADDRESS 

By Mr. Adedoyin Idowu Owolabi, BSc, 

MILR, MNIM, FCA on his INVESTITURE 

as the 48th President of the Institute 

of Chartered Accountants of Nigeria at 

the Council Chamber of the Institute on 

Wednesday, May 30, 2012 

PREAMBLE 

1. Let me begin this inaugural address by giving 

the Almighty God the glory and praise for this historic 

occasion of my investiture as the 48 th President of the 

foremost Institute in Africa, the Institute of Chartered 

Accountants of Nigeria. When on Thursday, May 

24, 2012, my colleagues on the governing Council, 

unanimously elected me to be the Institute’s flag-bearer 

for the 2012/2013 Presidential Year, I accepted the 

honour with a great sense of responsibility, humility 

and enthusiasm. Thus, the seamless transition you 

have just witnessed this morning, evidenced by the 

formal presentation of the insignia of office to me, 

bears eloquent testimony to this great Institute’s 

acclaimed rancour-free, time-tested, trusted and resilient 

succession tradition. It also affirms in clear terms not 

only the civility of chartered accountants but also that the 

disciplined Accountancy Profession remains the beacon 

of hope for the Nigerian nation even as we grapple with 

the challenge of peaceful democratic transition at all 

levels of governance. 

2. As a beneficiary of this revered 47-year old 

tradition today, this honour represents the peak 

and crowning glory of my professional career which 

commenced when I joined the pioneer and foremost 

indigenous Accounting Firm of Akintola Williams & 

Co (now Akintola Williams Deloitte) as audit trainee 

in 1981, immediately after my National Youth Service 

Corps (NYSC). It was during my eventful 7-year stint 

with this international firm that I qualified as a Chartered 

Accountant and was admitted into the membership 

of the Institute of Chartered Accountants of Nigeria in 

1985. I dare say that nothing has given me so much 

satisfaction, joy and fulfilment than this achievement and 

great honour bestowed on me by my professional peers. 

I reverently dedicate the honour to my late wife, Dr. (Mrs) 

Mary Omoyosola Owolabi (nee Omolayole) and the glory 

of God. May her gentle soul continue to rest in perfect 

peace. Amen. 

3. While appreciating the 36,000-strong members 

of this noble Institute for the confidence reposed in me 

through this election, I salute, most warmly, the vision, 



Investiture 

foresight, strength of character and ingenuity of the founding 

fathers of this Institute, our revered Past Presidents, many of 

whom are here today. These jewels sacrificed their time, comfort, 

ideas and resources to lay this solid foundation, of which we are 

proud, for the benefit of successive generations of professionals. 

The least we can do for them, as men and women of honour, is 

to uphold and defend the ideals of integrity, accountability and 

transparency for which they selflessly toiled and bequeathed to 

us. Accordingly, I solemnly declare and reaffirm my commitment 

to uphold and defend these ideals no matter the odds. I also pray 

the good Lord to spare your lives, give all of you good health to 

enjoy the fruits of your labour. Your labours shall not be in vain, 

in Jesus Name, Amen. 

QUO VADIS ICAN 

4. Without equivocation, let me state that these are not the 

best of times; in fact, these are very trying times for the Institute. 

The past few weeks have been extremely challenging to the 

leadership (i.e., the Council) of our Institute and even more 

disconcerting for many members that were subsequently apprised 

of the unfortunate developments through the media. Indeed, many 

stakeholders were on edge with every passing day as the Institute, 

the lighthouse and benchmark of professional bodies in Nigeria, 

appeared to have crossed the Rubicon. In spite of this, I was not 

distraught because of my faith not only in Jon R. Katzenbach’s 

saying that, “Real team efforts do not avoid conflict; they thrive 

on it” but also in the ability of Council to rise to the occasion. 

5. Interestingly, a research by Larry Greiner (1972) 

titled, “Evolution and Revolutions as Organisations 

Grow” persuasively asserts that there is nothing unusual in 

this seemingly untoward situation for organisations set for 

the mountain top! According to the research, “as a company 

progresses through developmental phases, each evolutionary 

period creates its own revolution …the nature of management’s 

solution to each revolutionary period determines whether a 

company will move forward into its next stage of evolutionary 

growth”. Put simply, each phase is both an effect of the previous 

phase and a cause for the next phase. In my view, after 47 years 

of existence and impressive achievements, the dynamics of the 

Institute and membership mix, have changed very significantly 

and to be on top of our game, we need to know where the Institute 

is in the developmental sequence. We need to question existing 

fundamental assumptions; we need to re-appraise our strategies 

and chart a new path, for, unusual situations, demand unusual 

actions/solutions. This research finding notwithstanding, the 

Institute’s banner, in the esteemed tradition of our revered Past 

Presidents, must be without stain, even as we diligently search for 

better ways of doing things. We need to revisit the policies of the 

past and bring more equity and justice to bear on our processes 

and operations. 

6. Happily, in the midst of the avoidable crisis which I prefer 

to describe as inflection point, we found strength in the ideals of 

the Accountancy Profession, in our diversities, in pragmatism and 

we collectively resolved to build bridges of understanding and 

take ICAN to the next level. Today, to the glory of God, the thirty 

wise men and women on Council brought their statesmanship and 

courage to bear and as a family, we are matching forward. I trust 

and pray that the built-to-endure ICAN ship, will remain anchored 

on integrity, our cohesion and collective strength as professionals. 

As a Council, we will do the needful to prevent a recurrence of this 

ugly tide. Accordingly, the theme of this Presidential year shall 

be, “Building a Solid Structure on a Sound Foundation: Quo 

Vadis ICAN” 

7. Without doubts, we inherited an enviable legacy and 

an institution founded on the best global values of excellent 

service delivery in the public interest. Thus, during the year, 

using our professional expertise and intellectual scholarship, 

we will re-define the best values of our profession and defend 

our audit franchise in our strategic desire to deliver greater 

value to stakeholders. We must rebuild the waning confidence 

of stakeholders in our non-negotiable public interest mandate. 

We will continue to cooperate with and support the government 

through the submission of policy recommendations and share our 

expertise in optimum resource management with persons with 

governance responsibilities at all levels. 

8. In an era in which the economic prosperity and clout of 

any nations are inextricably bound to their degree of adherence 

to universally accepted ethical values, the Accounting Profession 

in Nigeria, as in other parts of the world, must continue to lead 

the crusade for transparency and accountability in governance. 

In fact, never before has so much premium been placed on the 

expertise and integrity of the Chartered Accountant by society and 

the business community in resource management and security of 

assets. At such a momentous time in the lives of corporate entities 

and the nation, the Accounting Profession cannot afford to falter. 

Make no mistake: criminals are now becoming more ingenious 

and scientific in their approaches to fraud and related crimes. As 

professionals, we must be many steps ahead of them such that 

criminals are precluded from benefitting from their crimes. 

9. Thus, as we step up our strategic capacity building efforts 

in the areas of Investigations, Digital Audit, Fraud and Forensic 

Accounting, we will continue to partner with other professional 

bodies and agencies of government to rid the nation of corruption, 

sharp and unethical practices. As seasoned professionals, we 

will continue to walk our talk by proactively delivering on our 

mandate as the conscience of the nation. Pursuant to this, we 

would, during the year, prepare and present a Whistleblower’s 

Bill to the National Assembly for consideration and passage 

as part of our contributions to the fight against corruption. We 

would step up aggressive campaigns to enforce compliance 

with subsisting legislations designed to promote accountability in 

governance like the Nigerian Extractive Industries Transparency 

Initiative (NEITI) Act 2007, the Fiscal Responsibility Act 2007, the 

Public Procurement Act 2007, Freedom of Information Act 2011, 

Financial Reporting Council (FRC) of Nigeria Act 2011, Money 

Laundering (Prohibition) Act 2011, etc. 

10. We intend to be actively involved and indeed, be on the 

driving seat of the process for the renaissance of our nation’s 

value systems. We will continue to expose ethical compromises 

and sanction deviants whose conduct, which, if not checked, can 

demean and bring the hard-earned and towering goodwill/image 

of the Accountancy Profession to disrepute. As professionals, we 

must stand up and be counted on the side of equity and justice 

both in words and in actions. Therefore, this investiture is more 

than ceremonial; it is a timely clarion call to self-less service for the 

greater glory of the Institute and the nation in general. It will mark 

the beginning of an era of professional rebirth, social renaissance 

and commitment to excellence. 



Investiture 

TRIBUTES 

11. Distinguished professional colleagues, ladies and 

gentlemen, as I begin this challenging 365-day Presidential 

journey, I must admit with all sincerity that I cannot claim sole credit 

for today’s historic achievement. Throughout my professional 

career which has spanned nearly three decades, I have been 

greatly inspired and encouraged by the collective words of 

wisdom, deeds and wishes of many professional colleagues, 

mentors and friends alike, and in particular, members of Council 

to tread this honourable path. Indeed, since I became more 

actively involved in the Institute’s affairs in 1998 when I first 

won election to Council, I have continued to enjoy very warm 

and cordial relationship with members, both inside and outside 

the Council. I wish to appreciate you all for this wonderful and 

invaluable encouragement, inspiration and support. I wish to 

profoundly thank, my dear friend, the Immediate Past President, 

Prof Francis Ojaide, MSc, PhD, OON, FCA for his invaluable 

services to our great Institute and profession and indeed, for 

making this investiture a huge success. Prof, as you move to the 

next stage of your life, may the good Lord continue to uphold you 

and direct your footsteps in Jesus Name. Amen. 

12. This appreciation would certainly be incomplete if I do not 

acknowledge the outstanding pioneering roles of our revered past 

presidents (many of who are here present) who blazed the trail 

in accounting excellence and passed onto us this flag of honour. 

Indeed, the role of all Past Presidents in my professional tutelage 

has been very profound. With all reverence, I must thank, in 

particular, the Doyen of the Accountancy Profession in Africa, Mr. 

Akintola Williams, CBE, CFR, B.Comm., FCA, in whose firm my 

professional career started. Past Presidents, Balogun Johnson 

Olaobaju Olabisi Omidiora, BSc, OON, FCA; Chief (Mrs.) Olutoyin 

OIusola Olakunri, OFR, FCA; Dr. (Chief) Richard Uchechukwu 

Uche, FCA, Chief (Mrs.) Elizabeth Omeresan Adegite, MBA, FCA 

and Major General Sebastian Achulike Owuama (retd.), BSc, FCA, 

during whose tenures I had the greatest insights into the intricate 

governance processes of our Institute. 

13. I must also specially appreciate the roles played by the 

late Prince Adebajo Abiodun Babington-Ashaye, FCA (President 

2007/2008) and Chief (Mrs) Ibironke Mojisola Osiyemi, FCA 

(Mama Council) which made the events of today possible. I owe 

you all much more than words can express. I am certain that 

your names, already inscribed in gold, will remain evergreen in 

the annals of Accountancy in Nigeria. I am persuaded that the 

best way to thank you all is to continue in that dedicated and 

professional spirit which you bequeathed to us so that we can also 

hand over to successive generations of Chartered Accountants, 

a banner without stain. To all my well-wishers too numerous to 

mention, I am very appreciative of your individual and collective 

support that made this day a reality. May the good Lord also crown 

your activities with resounding success. 

14. Permit me distinguished guests, ladies and gentlemen 

to pay special glowing tributes to a gentleman, elder statesman, 

a world-acclaimed management guru and board room giant, my 

father In-Law, Dr. Michael O. Omolayole, for his role in my life. 

Over the years, he stood by me solidly as a pillar of support, 

encouragement and inspiration. Daddy, may God lengthen your 

days, give you good health for you to fully enjoy the fruits of your 

labour. Amen. 

15. Finally, I must pay special tribute to my late wife and best 

friend, Dr. (Mrs.) Mary Omoyosola Owolabi (nee Omolayole) for 

all her tremendous support and encouragement when I became 

very active in the Institute’s affairs and in particular, in the Annual 

Conferences. She never complained all through the numerous 

times I was away from home on ICAN assignments. In fact, 

hers was more than understanding and sacrifice: she became 

directly involved in ICAN Conferences when she introduced 

the Conference Clinics which she ran pro bono for many years 

until she passed on on January 17, 2009. For this, she got an 

ICAN Award in 2007 for selfless and meritorious service to 

the Accountancy Profession. To sustain this legacy and in her 

evergreen memory, the family has resolved to continue this 

tradition by annually sponsoring the ICAN Conference Clinics. 

May her gentle soul continue to rest in perfect peace. Amen. 

APPEAL FOR SUPPORT 

16. Given the proven quality of members of the Presidency 

and Council, I am persuaded that the challenges of leadership 

posed by my election to this high office will be made easier. I 

earnestly court the unalloyed support, usual cooperation and 

understanding of members of Council, the Executive Coordinating 

Committee of Council and all my professional colleagues in this 

arduous journey. I am persuaded that as a team, we have the 

professional wherewithal to overcome all odds, build a profession 

whose fountain of service will remain pervasive and value-laden 

thereby take the Institute to the next level. In my view, this is our 

finest hour to impact the course of national development and 

human progress with our skills and professional expertise. We 

cannot afford to fail. Indeed, success is the only option. 

CONCLUSION 

17. Distinguished professional colleagues, ladies and 

gentlemen, the Institute is at another threshold of history that 

calls for great courage to adopt strategies that will reinforce not 

only our dominance of the business environment and move the 

Institute to sustained prosperity but also champion the cause 

of professionalism in the management of national resources. 

Although, the stakes are high, we shall not shy away from taking 

those critical decisions that will significantly impact on our integrity 

and ability to create further wealth. We would embrace change 

without giving up our values for as Martin Luther King Jr. said, “the 

ultimate measure of a man is not where he stands in moments 

of comfort and convenience, but where he stands at times of 

challenge and controversy”. 

18. Finally, let me, once again, thank most sincerely all my 

professional colleagues, mentors, friends, specially invited guests 

and members of the Press present here today, for being part of 

this history making investiture. I thank you all for your presence 

and for adding colour to this wonderful ceremony. Distinguished 

ladies and gentlemen, may the Almighty God bless and grant you 

all journey mercies to your respective destinations. 

Thank you all. 

Adedoyin Idowu Owolabi, BSc, MILR, MNIM, FCA 

President, ICAN 

Wednesday, May 30, 2012. 



Travelogue 

The World Unites Against Fraud 

In Orlando, Florida, USA 

By 

ABEL AIG. ASEIN 

It was an open solemn confession of 

sincere regret and remorse by Dr. 

Mark Whitacre for crossing the line 

of honesty into fraud and dishonour 

in 1992. He wept profusely before the 

capacity filled auditorium. The occasion 

was the just concluded 23 rd Annual 

Conference of Association of Certified 

Fraud Examiners (ACFE) held at the 

Gaylord Palms Resort and Convention 

Centre, Orlando, Florida, USA. A holder 

of 9 academic degrees, six of which are 

PhDs in various disciplines including 

Biotechnology and Law, Dr. Whitacre 

recalled, with regret, how he and three 

of his colleagues amateurishly/foolishly 

lost US$660,000.00 to a Nigerian email 

scam in 1992 due to greed. Now Chief 

Operating Officer, Cypress Systems Inc, 

the erstwhile Vice President of Archer 

Daniels Midland (ADM), a Fortune 500 

company, Dr Mark Whitacre, was jailed for 

fraud and tax evasion even after exposing 

an international price fixing conspiracy 

to the Federal Bureau of Investigation 

(FBI). In an emotion-laden testimony, he 

narrated how he wore a wire (recording 

equipment) for almost three years (12 

hours every working day) for FBI in an 

effort to establish and unravel one of the 

largest price fixing cases in USA history. 

This equipment, according to him, was 

installed on him every morning by FBI 

on his way to work and removed in the 

evening to retrieve information gathered 

all day! The audience was stunned 

when Dr. Whitacre declared painfully 

that the philosophy of the obnoxious 

price fixing network was “the customer 

is enemy, competitor is friend”! Yet, 

driven by greed, Dr Mark Whitacre, the 

acknowledged whistleblower, went to 

jail for 9 years for stealing US$9 million 

from his employers, ADM, while still 

playing the role of informant to FBI. His 

profile demonstrates, in some sense, 

that fraud is not the pass time of school 

dropouts or idiots but of the elite and it is 

evidenced by trust violation perpetrated 

by a person entrusted with governance 

responsibilities. 

According to this conscripted FBI agent, 

he started stealing from his employer 

through various skimming schemes 

and issuance of invoices through shell 

companies in an effort to repay his share 

of the huge loss to the Nigerian scam 

which became loans to them. Even after 

fraudulently repaying the “loan”, he could 

not stop the various transiently rewarding 

fraudulent schemes. Interestingly, his wife 

reported the matter to the FBI when she 

suspected that her husband’s financial 

status had become stupendous and out 

of tune with his salary! Yet, he emotionally 

paid glowing tributes to his wife, whom 

he described as the moral compass in 

his family, for not divorcing him, in spite 

of his self-imposed travails. Because of 

the noble role he played to unravel the 

price fixing crime, many organisations 

voluntarily took on the maintenance 

of his family throughout the 9 years of 

incarceration as part of their corporate 

social responsibility. Many top ex-FBI 

agents are currently lobbying to secure 

for him a state pardon. His story is now 

the subject of feature film titled, “The 

Informant”. The story of Dr Whitacre was 

one of the icings on the conference cake. 

OPENING CEREMONY 

Held inside the beautiful main 

auditorium of prestigious Gaylord Palms 

Resort and Convention Centre on Monday, 

June 18, 2012, the Conference opening 

ceremony, anchored by the Manager, 

Education of ACFE, was as colourful as 

it was memorable. It commenced with 

a grand procession by bearers of the 

flags of the 60 nations in attendance and 

this was followed by the rendition of the 

official ACFE anthem by a 3-man staff 

supported by a contingent of the USA 

Army. The Conference was declared open 

by renowned Criminologist, former FBI 

Agent, Founder and Chairman of ACFE, 

Dr. Joseph T. Wells, CFE, CPA who felt 

elated about the growth in membership of 

the anti-graft body to over 60,000 CFEs 

globally. He noted with delight that 25% 

of this membership is from outside USA. 

Formed in 1988, the ACFE, according 

to him, is the world’s largest anti-fraud 

organisation and premier provider of antifraud 

training and education. 

A research scholar and author of over 

20 books on fraud and related matters, Dr 

Wells warned the audience that the growth 

of social networks, as commendable as 

they are, represents the highest area 

of risk to global commerce and industry 

as identity theft will grow phenomenally 

in the next five years. With a user base 

of 800 million, Facebook, according to 

him, provides information about users to 

anyone and everyone who cares. Since 



Travelogue 

all social networks have accounts that 

can be compromised, they are dangerous 

to privacy. With the prevalent economic 

challenge, insurance, health care costs, 

government grants and social security 

allowances, etc, will increase just as 

cyber crimes. The expected phenomenal 

increase in identity theft implies that 

individual privacy will be invaded by 

criminals or hackers. Since these agents 

of deceit and fraud are transnational, 

they would constitute a nightmare to law 

enforcement agents. Many nations and 

corporate entities, he warned, will be 

vulnerable. 

Accordingly, investment in 

and management of Information 

Technology (IT) infrastructure, 

processes and controls will 

become inevitable. Yet, 

according to him, although 

the society wants to prevent 

criminals from benefiting from 

their crimes, they are not willing 

to pay for such services or 

make the right investment in 

IT. Inevitably, less crooks will 

be caught and put in jail. As 

he put it: while armed robbery 

may reduce, cyber crimes will 

certainly increase with pervasive 

devastation. Since prevention 

is better than cure, he urged 

all stakeholders to rise to the 

challenge by embracing the 

anti-fraud initiatives of ACFE 

including engaging the services 

of CFE holders. He added that 

Information Technology (IT) 

solutions must be developed 

to protect the innocent. In the midst of 

the expected rapid changes in IT, the 

CFE holder must continually raise his 

competence level in view of the dynamism 

of crimes. He urged everyone not to 

respond to scam letters from West Africa 

or anywhere. “Educate yourself, learn 

about scam, teach your subordinates 

and colleagues about fraud, network with 

colleagues, cultivate a lifelong learning 

culture”, he charged the participants. 

Finally, Dr Wells who spoke extempore 

from the heart declared, “many may not 

achieve their dreams; I have fulfilled my 

dream with you out there fighting fraud 

and related crimes. Spread the gospel 

of the ACFE”. He told all CFE holders to 

co-operate with the Police and other law 

enforcement agents to fight crime. 

In his welcome address, the ACFE 

President and Chief Executive Officer, 

Dr. James D. Ratley, CFE thanked the 

ACFE staff for their selfless services and 

for putting together the grand conference. 

He paid glowing tributes to ACFE partners 

worldwide particularly the FBI, the USA 

Securities and Exchange Commission, 

Government Accountability Office, 

Revenue Service, City of London Police, 

Secret Service, etc, for their invaluable 

support. He urged all those who had not 

been certified as fraud examiners to strive 

to do so, so that they can join the critical 

‘ 

A stand for Fraud Museum 

was created ...A sample of 

Nigerian scam letter sent by 

post in the 1980s, with all 

the trappings of fraud (fake 

stamps, names, address, 

tipp-ex correction, etc), 

produced using a typewriting 

machine implying that it may 

have predated this era of 

internet, was on display. 

‘ 

mass required to fight fraud. His call was 

very timely considering the amount lost by 

the global economy to fraud and related 

vices each year. According to a survey of 

Certified Fraud Examiners (CFEs) who 

investigated cases between January 

2010 and December 2011, for instance, 

organisations around the world lose an 

estimated five percent of their annual 

revenues to fraud. Applied to the estimated 

2011 world Gross Domestic Product, 

this figure translates to a potential total 

fraud loss of more than $3.5 trillion. The 

ACFE published the results of the survey 

in its 2012 Report to the Nations on 

Occupational Fraud & Abuse. The report 

includes global data among the 1,388 

cases of fraud that were studied. 

Given this frightening statistics, Dr. 

Ratley urged persons in positions of 

leadership and trust to raise the bar of 

ethical conduct. They must set the tone at 

the top for corporate success. He urged 

all participants to take advantage of the 

various sessions as they will provide 

more anti-fraud insights, information and 

resources than has ever been assembled 

in one gathering. In spite of the elaborate 

opening ceremonies, not more than 45 

minutes was spent in all! There were no 

protocols, just business. 

TECHNICAL SESSIONS 

The glorious and grand conference 

started on Sunday, June 17, 2012 with 

nine technical workshop sessions. 

Indeed, between Monday, June 18 and 

Wednesday, June 20, 2012, a total of 

95 technical presentations were made 

excluding the two general (plenary) 

sessions, two working lunches, and 

opening ceremonies. This was possible 

because the participants were segmented 

into six independent groups. For each of 

the groups/sessions, pre-registration was 

encouraged. This made it easy for unique 

conference programme to be generated 

for each participant. Yet, there was Swiss 

precision in time management. In addition, 

two extra days were scheduled for postconference 

presentations for those who 

were willing to attend the pre-announced 

programmes for a fee. These events, like 

the Main Conference presentations, were 

very interactive and enriching as they 

involved knowledge sharing by experts 

from the field and industry. 

One of the most significant lunch break 

presentations was by former US Congress 

man, Senator Christopher J. Dodd who 

co-sponsored the Dodd-Frank Act in 2008 

which empowered the President Obamaled 

USA Federal Government to bail out 

distressed institutions like AIG, Bank of 

America, etc, in the wake of the collapse 

of Lehman Brothers, Merrill Lynch, etc. 

Senator Dodd who had spent 6 years 

in the House of Representatives and 

30 years as Senator forcefully argued 

that, irrespective of what people say or 

feel about the piece of legislation, if they 

(Congress) had not acted when they did, 

the USA economy and by extension, the 

global economy would have collapsed. His 

presentation was a lesson in persuasion 

and advocacy. In addition to providing 

for whistle-blowing, the Act sought to 

improve regulation, accountability and 



Travelogue 

transparency in the financial sector. The 

current fledgling recovery in the USA 

economy is attributed to this Act which he 

commended to participants. 

LESSONS FROM THE 

CONFERENCE 

Attended by over 2300 delegates 

including over 65 from Nigeria (an ACFE 

conference record), the very enriching 

presentations at the various sessions 

were immediately available on ipads, 

iphones, laptops and the like. In other 

words, there was live web 

telecast (Webinar) which was 

accessible to members who 

could not attend physically. 

Internet services with dedicated 

username and password for the 

conference were also provided 

to the delegates. Throughout 

the conference, participants 

were able to surf the internet at 

zero cost within the conference 

venue. In a unique manner, 

the papers presented were all 

categorised into Intermediate 

and Advanced knowledge in the 

area of discourse for participants 

to be aware of the knowledge 

level expected. Also, diverse 

areas of Fraud discipline were 

covered: Ethics, Accounting, 

Auditing, Communication, Law, 

Computer Science, Advisory 

Services, etc. Soft and spiral 

bound hard copies of papers 

were given at the points of 

registration. To ease participants’ 

logistics, registration materials were 

arranged in alphabetical order. 

The soft copies of the detailed 

conference programme in CDs were 

circulated to members and also 

downloaded into blackberry phones and 

other electronic devices of participants 

for ease of reference. The ACFE Credit 

hours awarded were scientifically 

determined such that no one earned 

more than the allowable credit points 

for the pre-conference, main conference 

and post-conference technical events. 

More importantly, five Career Strategists 

were invited to address participants on 

career-related issues in a designated 

section of the Exhibition Area. However, 

persons with special career needs were 

required to pay US$50 for 50-minute 

private consultations with the strategists. 

In addition to the prescheduled networking 

sessions, tea breaks were arranged in the 

Exhibition halls to ensure that members 

visited the stands. The refreshments were 

overwhelming in spite of the numerous 

tea breaks. 

Also, a stand for Fraud Museum was 

created. This had a lot of historical fraud 

related materials like the newspaper 

reports of Mr. Charles Ponzi scheme 

of 1920, the Cornucopia Gold Mines 

Share scandal of 1958; the beautiful 

ebony and exotic office name plate of 

‘ 

CFEs and allied professionals 

must lead the next generation 

to fight corruption in words 

and deeds. Nothing can be 

accomplished, if they are 

not united against fraud, 

which remains a challenge to 

humanity. Fraudsters as trust 

violators, must be precluded 

from benefiting from such 

unethical violation. 

‘ 

Madoff Investment Securities LLC, a 

sample of Nigerian scam letter sent by 

post in the 1980s, with all the trappings 

of fraud (fake stamps, names, address, 

tipp-ex correction, etc), produced using a 

typewriting machine implying that it may 

have predated this era of internet, was 

on display! The archival collections, were 

truly great. 

Also, a Raffle draw was done by 

the ACFE Foundation for a 60-inch 

plasma television valued at US$1,660.00 

inclusive of freight cost while ten ACFE 

Students currently on the Foundation’s 

scholarship were sponsored to attend 

the Conference. Awards were presented 

to various categories of persons: best 

graduating ACFE Student from South 

Africa, best educator (a Professor from the 

University of Mexico), ACFE Ambassador 

for the year, a Journalist, Ms Diana 

B. Henriques with New York Times 

who blew the lid on Madoff and also 

published the Whistleblower. She also 

made a presentation on Communication/ 

Interviewing Skills during one of the lunch 

breaks. 

Anchored by the ACFE President and 

Chief Executive Officer, Dr. Ratley, the 

formal closing ceremony lasted less than 

ten minutes. It dwelt on the highlights of 

the forthcoming 24 th Annual Conference 

scheduled for June 2013 in Las Vegas, 

USA. He also drew the curtain on the 

conference with a vote of thanks to all 

delegates. 

CONCLUSION 

It was truly an excellent gathering 

not only to discuss emerging anti-fraud 

initiatives but also to celebrate the heroes 

of anti-fraud and the need for more army 

of fraud fighters to be recruited across the 

globe. Given its perverse nature, the world 

had to be united against fraud in Orlando, 

Florida, the home of Disney World. 

Indeed, the message of the conference 

was clear: CFEs and allied professionals 

must lead the next generation to fight 

corruption in words and deeds. Nothing 

can be accomplished, if they are not 

united against fraud, which remains a 

challenge to humanity. Fraudsters as 

trust violators, must be precluded from 

benefiting from such unethical violation. 

No compromises. In this onerous task, the 

boards and management of organisations 

share critical responsibilities to deter fraud 

in financial reporting. Besides setting the 

tone at the top, they must respond quickly, 

equitably and proportionately to violations 

of corporate policies and procedures; they 

must create a hotline for whistle-blowing; 

maintain internal and external auditing 

processes independent of management’s 

influence, investigate and remediate 

problems when they arise. Without 

these preventive and other measures, 

the spate and success of fraud will rise 

effortlessly with severe devastation on 

human progress. The parting shot was: 

the world must remain united against the 

evil called fraud. 

* Mr. Abel Aig. Asein, BSc, MBA, 

AMNIM, CFE, ACCA, ACA is the Deputy 

Registrar, Technical Services of the 

Institute of Chartered Accountants of 

Nigeria. He attended the conference. 




ICAN Members’ Benevolent and Educational Trust Fund 

Fund Raising Brochure 

PREAMBLE 

The ICAN Members’ Benevolent and Educational Trust Fund was 

established by the Council of the Institute of Chartered Accountants 

of Nigeria (ICAN) in 2003 to assist persons in need who are or have 

been ICAN members and/or their families and dependants. It is 

also aimed at promoting and supporting educational/research in 

Accountancy, Financial Management, Taxation and related subjects. 

The Board of Trustee of the Fund was formally inaugurated on July 

13, 2003 in the Council Chamber of the Institute, Victoria Island. 

Some Chartered Accountants due to no fault of theirs have been 

very unfortunate with employment so much so that as a result 

of economic downturn, prematurely lost their jobs. Some others 

suddenly became ill and were unable to cope with their jobs and so 

had to quit unexpectedly. Others became victims of natural disasters 

such as flood, fire etc and suffer untold hardship having lost all they 

laboured for in many years. 

Those who were unfortunate to die (from accident, illness, etc) 

left dependants particularly children who were also forced out of 

school for lack of financial assistance from the extended family. It 

is for these reasons and more that the Benevolent Fund was set up. 

OBJECTIVES OF THE SCHEME 

Thus the broad objectives of the Fund are: 

* To give financial assistance to members — For various 

reasons hitherto vibrant and intelligent Chartered Accountants 

fade out for reasons such as natural disasters or accidents and they 

become incapacitated. There will be a need to assist them to get back 

to a sound state of health to continue to add value to society. 

* To support families and dependants of members — 

Members who are unfortunate to pass on leave behind families and 

dependants who more often than not find it difficult to make ends 

meet or even continue with their education, particularly members 

of the immediate family. 

* To promote and invest in Research and Educational 

development in order to continuously improve the technical 

competence of members, so as to protect the public interest. 

STRUCTURE 

The Fund has a five man Board of Trustees with Sir (Chief) 

Simeon O. Oguntimehin (PP), OON as Chairman. 

Other members are: 

— Chief (Mrs) O.O. Olakunri (PP); 

— Sir Ike Nwokolo, OFR; 

— Mrs I.M. Osiyemi (PP); and 

— Alh. M.A. Dangana 

ACTIVITIES OF THE MANAGEMENT BOARD 

The major activities of the Management Board are fund raising 

and Management of investments. Funds so generated are invested 

and it is the income from the investments that are disbursed to 

members in need and families that are distraught. Since inception, 

the Fund has been used to assist members and families of dead 

members. This include members who had renal (kidney) failure, 

blindness, stroke, spinal cord injuries, disaster (fire/flood/accident) 

victims, children’s education, etc. 

CONDITIONS FOR GRANTING FUND 

1. Must be a professionally qualified member of the Institute 

of Chartered Accountants of Nigeria (ICAN). 

2. Must have paid up the annual subscription of the Institute 

at least up to the immediate past year of before incapacitation. 

3. The mishap for which the Fund is meant to grant succor to 

the member must not be due to his/her careless, negligence, or 

recklessness, e.g. the Fund will not be disbursed towards cases like 

arson, murder, manslaughter, accident resulting from use of hard 

drugs, etc. 

4. It must be proved beyond all reasonable that the member 

cannot afford (as a result of his/her present circumstances) his 

immediate needs. 

LIMIT OF FUND 

The minimum limit shall be a sum of Ten Thousand Naira 

(N10,000.00) while the maximum limit shall be a sum of Two 

Hundred and Fifty Thousand Naira (N250,000). 

MANAGEMENT BOARD MEMBERS 

• Mrs Ibironke Mojisola Osiyemi (PP) — Chairman 

• Doyin Owolabi — Member 

• Chidi O. Ajaegbu — Member 

• Mrs Yinka Olowu — Member 

• Alhaji S.I. Dabana — Member 

• Kayode Abe — Secretary 

• Mrs Funmi Ogunniyi-David — Minutes Sec. 

PROCEDURE FOR DISBURSEMENT 

1. Application shall be received from prospective beneficiaries 

stating the estimate of his/her needs – Such application should also 

be supported by the District Society of the member. 

2. Application to be considered by the Management Board. All 

applications considered and treated at any meeting where at least 

two (2) members of the Board are present is considered valid. 

3. The Secretary shall be responsible for the processing and 

issuance of cheque for the amount approved. 

4. All cheques shall be crossed “account payee only’ and made 

payable to the beneficiary through the District Society, unless 

otherwise decided by the Board. 

5. All failed/rejected applicants will be informed of the reason 

for failure/rejection. 

We use this medium to passionately appeal to you for donation 

to meet the rising demands on the Fund. We are not unaware of the 

times we are in but we believe some members are more privileged 

and fortunate than others. We request that you extend a hand of love 

to your colleagues. This is a worthy cause and we pray that God will 

remember you in your time of need. 

Finally, we wish to assure you that donations received would be 

thankfully received and acknowledged. 

Kindly issue your cheque in favour of 

“ICAN BENEVOLENT AND EDUCATIONAL TRUST FUND” 

or pay directly into the account: 

Guaranty Trust Bank PLC: 229-677234-110 

APPEAL FOR DONATION 

The Management Board has received many applications for 

financial assistance in recent times, which it could not positively 

respond to due to lack of fund. This financial limitation has hindered 

the progress of work, as the Board is desirous of touching many more 

lives, which we believe have the potentials to add value to society. 

We are therefore constrained to make direct appeal to organisations 

and net worth individuals to support the Fund. The donation can be 

in form of cash, property, bequeathment in wills, endowment, etc. 

For further information please contact: 

• Ibironke Mojisola Osiyemi (Mrs) — Chairman 

• Olutoyin Adeagbo Adepate — Registrar/Chief Executive 

• Kayode Abe — Secretary 

Tel.: 01-7735204, 7740627, 4705336 

e-mail: corporateservices@ican.ng.org

Education 

The Perception of Accountants in 

Institutions of Higher Learning on the 

Funding Situation of 

Nigerian Universities 

By 

LUKE ONUOHA 

This paper presents the perceptions of accountants in Nigerian universities on the funding of higher education. Drawing 

from the perspective of the African Political Economy Model (APEM) and the Resource Dependence Theory (RDT), the 

paper concludes that the worsening economic and political climate in Nigeria has led to reduction in annual allocations to the 

universities and the belief that private initiative in higher education succeeds better. The study was carried out using a sample 

of accountants serving in two universities in the south-west geo-political zone of Nigeria with the aid of a scaled questionnaire. 

Of the 115 questionnaires distributed, 108 were returned successfully completed. The data obtained was then analysed using 

SPSS. The study concludes that a new universities’ funding paradigm has emerged in the country in the form of ‘dependence 

funding’, that is, critical funds generated through internally generated revenue (IGR). The paper will be critically beneficial to 

higher education planners in all the three categories of universities in Nigeria, i.e. private, state and federal. 

The dismal funding of higher education in Nigeria has 

attracted lots of commentary from many patriotic quarters 

(Udoh, 2001). Literatures on financing of higher education 

in Nigeria and indeed, Africa, are replete with references 

to under-funding of the public universities (Adeniyi, 2009; Odebiyi 

and Aina, 1999). As of today (February 24, 2012), there are 122 

universities in the country out of which public universities (Federal 

and States) total 72 and private 50 (Suleiman, 2012). The common 

discourse condemns the proliferation of universities given the 

inadequate provision of funding from the proprietors/government. 

Interestingly, there appears to be a consensus of opinion among 

experts that private universities are more efficiently managed 

financially than the public (states and federal) universities. This is 

a clear shift from the earlier school of thought which believed that 

only the government can fund education appropriately (Ijaduola, 

et al., 2010) 

There is ongoing debate on the impact of inadequate funding 

on brain drain; absence of key infrastructural facilities; dilapidation 

of physical buildings; absence of laboratory consumables; and 

withdrawal of staff welfare programmes such as campus social 

clubs, medical and conference attendances for employees in 

the universities. Some have talked about the declining quality of 

the outputs of the universities which has emanated as the direct 

product of falling standards of teaching and research. Today 

some of the universities have become a shadow of the past, 

incurring for themselves the derogative description of ‘glorified 

secondary schools’ (Odebiyi and Aina, 1999, Wales 2010). What 

is discussed little about is how the lack of efficient management of 

the resources, rather than the mere shortage of funds, contributes 

to the sorry state of the universities. 

The first three private universities in Nigeria were introduced 

about 13 years ago, in 1999. Today the number has risen to 50 

(Suleiman, 2012) and the National Universities Commission 

claims more licenses are on the way. How these institutions 



Education 

have thrived and managed their funds debatably better than the 

public universities will be a topic for future research. But what is 

known for now is that the private universities rather than waiting 

for government subsidy, have introduced creativity in the funding 

and management of their institutions. By and large, the private 

institutions have depended on tuition fees, income from quasi 

commercial activities and fund-raising for their sustenance and 

development while the public universities have remained, in 

the eyes of the law, non-fee charging, even as the grants from 

government have continued to decline (Aina, 2002; Dawodu, 

2007). 

For the fear that government might completely withdraw from 

providing grants to the universities, some university managements 

across the country have refused to acknowledge the important 

place of autonomy of the institutions. Autonomy is the politicaleconomic 

arrangement that allows the universities operate as 

strategic business units, winning funding and managing the 

available resources in the manner the leaders see judicious; a 

way that guarantees growth and sustainability on the merit of 

productivity of each university. It still remains really unclear why, 

indeed, the public universities are not in support of autonomy. 

But what has become crystal clear is the fact that universities 

managements in Nigeria requires repositioning in favour of a more 

aggressive and creative engagement (Okojie, 2009). There is no 

gainsaying that business as usual has failed, and there is now 

a yawning gap for a more creative approach to winning external 

funding and managing same. 

There are easily more arguments against when it comes to 

x-raying the inability of the government on the funding of the 

federal universities. Some excuses touch on the tough economic 

circumstances which tend to be external to the government’s 

control. There is evidence of strong views that, as the economy 

gets tougher over the years, the government is forced to spend 

more in such areas as security, agriculture, and energy at the 

expense of education which gets only what is left over (Wangenge- 

Ouma and Cloete, 2008). 

Nowadays, parents are frequently compelled to make 

the decision of sending their wards to school in favour of the 

universities where they believe their wards will be exposed to 

high quality of teaching and research. Others have also had to 

place their consideration on the stability of the calendar which 

simply implies that the students begin and finish their studies 

within the advertised number of years. This is a choice factor that 

has become environmental with Nigeria following the consistent 

failure of the public universities to maintain stable calendar from 

year to year. Often this preferential choice has been made in 

favour of one private university or the other. Why the older public 

universities have continued to concede this enviable profile to the 

private universities remains baffling to many who wonder at the 

huge volume of funds that moves into the hands of the federal 

institutions from government each year. A future research in this 

area will be of proper place. 

Objectives of the Study 

This study is aimed at the following objectives: 

1. To determine the views of accountants in employment 

of the universities on how they perceive the funding 

situation of the Nigerian universities. 

2. To ascertain how the accountants view the impact of 

political instability and economic woes as impediments 

to government’s funding of the universities. 

3. To appraise the perception of accountants on corruption 

as a hindrance to effective funding of the universities. 

4. To determine how much the accountants support 

government ownership and funding of universities. 

5. To find out how much the accountants support that 

universities should seek alternative funding sources 

besides government subsidy. 

6. To ascertain how the accountants perceive staff turnover 

in universities as being the result of continual underfunding 

of the universities. 

7. To determine to what extent accountants in university 

employment support private initiative in higher education 

in Nigeria. 

This paper is anchored on four fundamental questions: (1) Is 

the government currently providing adequate funds for operating 

and capital needs of the universities in the country (2) Do the 

present economic and political situations in Nigeria encourage 

government ownership and funding of the universities (3) Should 

public higher institutions seek alternative revenue sources as 

against depending on government for needed critical funds (4) 

What lessons can be learned from the success rating of private 

universities who are thriving without any form of subsidy from 

the government 

The rest of the paper will include sections for the literature 

review/theoretical framework; the methodology; data collection 

and analysis of findings, and conclusion. 

LITERATURE REVIEW 

The literature review that follows is broken into four sub-heads. 

These include Financing of Higher Education; Political Instability 

and Economic Downturn on Financing of Education; Internally 

Generated Revenue; Private Initiative in Education; and the 

Theoretical Framework. 

Financing of Higher Education 

There is a critical economic challenge facing higher education 

throughout the world (Aina, 2002; Pendlebury and Algaber, 

1997). African universities appear to be the worst hit due to the 

worsening economic status of the focal countries (Atuahene, 

2008; Wangenge-Ouma and Cloete, 2008). Today underfunding 

is leading to very uncomfortable level of dearth of infrastructures, 

brain drain and poor delivery of teaching and research. Available 

literatures hold that a similar situation has confronted UK 

universities for several years (Pendlebury and Algaber, 1997). 

While it is the view of Aina (2002) that underfunding is the result 

of lack of adequate planning, proliferation of universities, ad hoc 

expansion of enrolment, and bloated non-academic to academic 

staff ratios, Wangenege-Ouma and Cloete (2008) reiterate that 

the amount of funding available is important for the attainment 

of the long-cherished teaching and research, community service, 

and other associated goals of the universities. 

The major traditional funding source for African universities is 

government grants (Dawodu, 2007). Some governments have 

enacted laws excluding collection of tuition fees (Aina, 2002) 

while some are silent about it (Wangenge-Ouma and Cloete, 

2008). Although Dawodu (2007) identifies five different sources 



Education 

of funding available to public universities in Nigeria, he, however, 

remarks that as much as 98% of the recurrent costs and 100% of 

capital costs accrue by way of support from government. 

Pendlebury and Algaber (1997) disclose that the consequence 

of the contraction in funding and expansion of enrolment is greater 

emphasis on financial management and the role of management 

accounting. The focus is mainly on how to increase the ability of 

the institution to win alternative funding that would stem the tide 

in the very absence of government support. 

The Higher Education Funding Council for England (HEFCE) 

(2010) provides funding for research in England on the basis of 

productivity as assessed in the most recent Research Assessment 

Exercise (RAE) (Elton, L., 2000 and Jones – Esan, 2007) Chatteris 

(2006) sums HEFCE’s research spending in a year to £1.25 billion 

pounds in average and as much as £4.0 billion in recurrent funding 

in one year. Yet available data shows that this is inadequate when 

compared with the US record (Kelchtermans and Verboven, 

2008) Adams (1977). The performance gap between European 

and US universities has been attributed to poor governance and 

incentives. The reports claim lower or insufficient EU investment 

in higher education. While EU total public and private spending on 

higher education amounted to 1.3 percent of GDP, US was ahead 

with 3.3 percent (Kelchtermans and Verboven 2008). Research 

confirms the existence of a negative match between the targeted 

high investment levels and the limited public resources available 

(Asplund, et al., 2008). 

Political Instability and Economic Downturn on 

Financing of Education 

Two forces have tremendously affected the financing of higher 

education in Nigeria and indeed, Africa. Political instability with 

what has come to be known as policy summersaults has done 

greater harm to governance. The economic meltdown that first 

reared its ugly head in 2008 has worsened matters for both 

government and the entire corporate investments (Sani et al., 

2011). These have so immensely dug a wide gulf between the 

funding required by the universities and what the governments 

are able to provide. In Nigeria this erosion had began since 1990 

and gone as high as 70% for recurrent expenditure in 1999 and 

1000% for capital expenditure in 2002/2003 (Ndagi, 1983; Adeniji, 

2008; Kolewole, 2009). 

The specific consequences of inadequate funding include 

jeopardy of the proposed national policy goals (Wangenge- 

Ouma and Cloete, 2008; Garba, 2009). In Nigeria, Aina (2002: 

237) traces the associated problems to the areas of brain drain, 

teaching and research, which has forced the universities ‘to 

embark on income generating projects in order to generate 

more funds’. He asserts that Nigerian universities today (in 

2002) had become ungovernable and tension laden in the face 

of unresolved issues of payment of fees and other politicking. 

Atuahene (2008:407) adds the challenges of “inadequate and 

dilapidated infrastructural facilities, falling standards, relevance 

and quality of programs due to ineffective instruction, and the lack 

of motivation on the part of faculty causing unbridled emigration of 

qualified teachers”. How best to confront the inadequate funding 

problem, without which the universities under reference would 

remain underdogs in the world’s educational stage, is of major 

interest to many researchers. However, some authors appear to 

be theoretical with the suggestions on dependence resource as 

their examples of these are sketchy. 

The different authors have suggested different approaches 

to the issue with Aina (2002) arguing in favour of autonomy 

which would permit of charging of tuition fees by the different 

universities. Other suggestions include reduction in the cost of 

administration and enhancement of commercial activities with 

a view to profitable operation of the universities ventures. What 

Aina failed to emphasise in his paper is the fact that many of the 

commercial units in some universities have continued to gulp lots 

of funds and never produced a reasonable income (Aina, 2002). 

Only one of the three universities he sampled had returned a profit 

from commercial activities. There is need for a more detailed study 

to ascertain the true contribution of universities commercial units 

as sources of critical funds. 

Wangenge-Ouma and Cloete (2008:912), putting forward the 

Resource Dependence Theory suggest that “diversification of 

sources of revenue can only guarantee universities continued 

financial stability if the various sources accrue significant amounts 

such that any unforeseen underperformance by one source does 

not financially destabilise the institution”. The authors, citing 

Ouma (2007), trace the limited resource dependence by South 

African public universities to weak university/business relations; 

limited industrial/business base; and lack of developed alumni 

and fundraising structures. Other reasons include absence of 

the culture of giving in Africa; impoverished geographic and 

economic environments of many higher education institutions; 

limited tax breaks for individuals and companies; and limited 

research capacity for some universities. The authors admit that 

research funds should follow research capacity. But how realistic 

these methods are, given the dearth of reliable empirical data, 

attract a question mark. 

From Ghana, Atuahene (2008), suggests cost sharing 

between students and government. Both Aina (2002) agree with 

Atuahene’s (2008) further suggestions, agree that educating the 

general population would yield positive outcomes in resolving 

the mammoth problem of funding higher education in Ghana. 

However, the suggestion of funding higher education with 

student loans is not without important cautions. Firstly, how much 

impact would the student loans scheme actually have taking into 

consideration how small the loan amount is within four years of 

study, and how large it eventually becomes after 15 years of 

first draw down going by the applicable interest rate Therefore, 

Atuahene’s suggestions appear to be tentative as they are not 

supported by empirical research data. Also, how reliable would 

be the funding from students payments given growing hard times 

within the African landscape 

Internally Generated Revenue 

Over the last 10 years, internally generated revenue (IGR) 

has been in limelight in Nigeria. It was first as a directive from the 

National Universities Commission encouraging public university 

managements to seek alternative funding to augment the 

increasingly reducing government subsidy. The list of IGR sources 

includes commercial activities for profit, consulting services, 

hospitality business, bookshops and supermarkets, among others 

(Ijaduola, 2010; Odebiyi, et al., 1999). 

In Okojie’s (2009) view, creativity in sourcing funding through 

IGR is the key to universities survival in the face of the current 

realities of governments’ economic misfortunes. Wangenge- 



Education 

Ouma, et al (2008) and Owoyemi (2009) agree with this view 

giving evidence of how the universities in South Africa and 

Nigeria have resorted to using internally generated revenue (IGR) 

to augment their critical funding gaps. Wangenge-Ouma, et al 

(2008) point out that the fee portion of the university total revenue 

has tended to respond in inverse correlation with the dwindling 

fortunes of the government. 

The inadequate funding for capital expenses by government 

(Adeniji, 2008) has forced many universities to use operating 

funds or bank loans to meet capital development spending 

(Wangenge-Ouma and Cloete, 2008). The regret has been on 

the fact that the government is yet to legislate on how high the 

fees can go, thereby leaving the institutions to decide the fees 

by themselves. Evidence of very high fees being charged can 

be traced. The fear of many is that the high fees might compel 

the students from challenged financial backgrounds to stay out 

of school (Atuahene, 2008). The subtle acknowledgement of 

failure on the part of the regulatory bodies touches on the root of 

the matter that government is not on top of universities funding 

in Africa (Okojie, 2009). 

The story of IGR has met with several difficulties in many 

universities. Quite a great number of university managements still 

disagree with the government that IGR can replace the grants from 

government. Some others have brought political consideration in 

the appointment of managers to their Strategic Business Units 

(SBU). The consequence has been a dismal performance such 

that the IGR component of their overall incomes has remained 

discouragingly below expectation (Odebiyi, et al.; Aina, 2002). 

Worse still, many of the universities are established in highly 

economically disadvantaged areas and lack the managerial 

knowhow to engage in profitable businesses (Wangenge-Ouma, 

et al, 2008). The result is that many of the dependence sources 

lack the muscle to sustainably support the universities for a long 

time. A future study on why the IGR sources have done so well 

in a few universities and failed woefully in others will be in proper 

stead. 

Private Initiative in Higher Education 

The coming of private initiative in tertiary education in Nigeria 

dates back to 1999 (Dawodu, 2007). The typical mode of funding 

of private universities hinges between tuition and fees, income 

from quasi business activities, and gifts (Adeniji, 2008). The 

private universities have received the greatest boost by way of 

growth in enrolment as a result of the continual state of decline in 

the academic standards of the older public universities. The visible 

decay of infrastructure; the continual erosion of values and the 

increasing state of insecurity due to the activities of cultists, as well 

as the unstable calendar, have culminated in persuading parents 

to turn their eyes away from the public universities and patronise 

private universities. It is amazing that the private universities have 

run continuously, upwards of 13 years without a single disruption 

of academic work unlike their public counterparts who have 

suffered several disruptions, no thanks to strikes. 

Theoretical Framework 

Two theoretical perspectives help to explain the behavior of 

universities in times of critical funding challenges. These are 

the African Political Economy Model (APEM) and the Resource 

Dependence Theory. 

The African Political Economy Model (APEM) 

The African Political Economy Model (APEM) focuses on 

how political and economic forces shape the contexts within 

which the universities mobilise and deploy resources to carry out 

their primary functions of teaching and research (Aina, 2002). 

The APEM helps to explain the realities of the specific political, 

economic and social matrix of the present policy environment 

in Nigeria. The claim of APEM is that the debt burden, political 

instability, and corruption deplete government expenditure 

generally and this impacts gravely on the educational sector. 

Universities underfunding is deeply rooted on the economic, 

social-political structure and belief system. The educational system 

of the government is subject to influences within the economic 

system. At the micro level, universities managements, parents and 

students as stakeholders are identified with direct consequences 

of government’s actions in the sector. While APEM model may 

well explain the critical resource dependence relationship with 

the government, it obviously does not answer the question of 

resource allocation efficiency within the institutions. However, its 

relevance in understanding the external funding realities of the 

universities mandates its inclusion in this study. APEM clearly 

defines the economic and political factors that compel situation of 

critical resources dependence challenge – debt burden, political 

instability, low investment, poor infrastructural development – but, 

it is obvious that the model (APEM) does not as clearly define the 

responses of the institutions to the situation. 

Resource Dependence Theory (RDT) 

The basis of the Resource Dependence Theory (RDT) made 

popular by the likes of Pfeffer and Salancik (1974; 1978; 2003) 

is that in times of declining support from the parent entity, the 

subordinates survive by seeking alternative critical funds from 

elsewhere. This is known as dependence funding. Theoretically, 

there is an inverse correlation between the level of declining 

support from a parent organisation and the critical resources 

imperative of its lower entities. 

The application of the theory is rooted on the observation 

that, as the political climate, with its attendant economic 

consequence of reduction in the ability of the government to 

grant subsidies to the universities deepens the universities are 

compelled to seek critical funding from sources where they have 

the liberty to turn to. These are commercial activities for profit, 

fund-raising and fees charging (Aina, 2002; Wangenge-Ouma 

and Cloete, 2008; Atuahene, 2008). According to Pfeffer, et al 

(1978:52), “Dependence… measures the potency of the external 

organisations or groups in the given organisation’s environment. 

It is a measure of how much these organisations must be taken 

into account and, also, how likely it is that they will be perceived as 

important and considered in the organisation’s decision making.” 

A state of dependence arises because the focal organisation looks 

up to the providers of the critical resources for survival. This is 

the basis of persistent interaction between the focal entity and 

the other organisations in its environment. 

Hypothesis (H o 

): There is no significant relationship between 

Government funding of universities and the worsening economic 

situation and political instability. 

Hypothesis (H 1 

): There is a significant relationship between 



Education 

government funding of universities and the worsening economic 

situation and political instability. 

DATA COLLECTION AND ANALYSIS OF FINDINGS 

The data collection involved a random sampling of 115 financial 

officers of two universities in South-West of Nigeria. The choice 

of accountants in institutions of higher learning for sample in this 

study is informed by the general belief that this class of people is 

more conversant about the financial fortunes of the universities 

than all other the stakeholders. By using accountants for the study, 

this amounts to engaging the ones who work directly with money 

in the universities to tell the story from their own understanding of 

the system. This choice is in agreement with Burel and Morgan’s 

social systems approach to understanding organisations and the 

behaviour of individuals in them (Burel & Morgan, 2008). 

A total of 108 questionnaires were returned successfully 

completed. The data was collated into frequency table and 

analysed using SPSS. The summary of the findings was further 

collated into a tableau for easy clarification and interpretation. 

The values were then subjected into test of significance using 

multiple regression analysis. 

Analysis of Findings 

The successful responses were analysed using the descriptive 

statistical method. Each question was reviewed on the test of 

Strongly Disagree (SA), Disagree (D), Agree (A) and Strongly 

Agree (SA). The findings, based on the frequency of responses 

to each sample question administered, the findings were further 

analysed using SPSS. 

A total of 74% of the sample believe that Nigerian Public 

Universities are underfunded. 60% attribute the government’s 

inability to worsening political and economic situations. 61% 

strongly disagree that universities are never better funded by 

government. The result shows 78% are not in support that 

government alone should be the sole provider of education. 

85 percent of those sampled believe that corruption has been 

a hindrance to the ability of government to adequately fund 

education. As to the question of the place of private universities 

on the provision of infrastructure for development, a total of 

66% believe that private universities are better funded with 

57% agreeing that private universities managements are better 

fund managers than the public universities. 84% disagreed that 

government alone should fund university education. 

As to whether universities should seek other avenues of funding 

other than government subsidies, a whooping 94% are in support. 

And on whether fees should be charged in all the universities, 

71% indicated positive agreement. Also, on whether universities 

should go into commercial activities for profit besides teaching and 

research, 99% are in support, while 92% would expect universities 

to go into partnerships with foreign agencies on agriculture. On 

whether the universities should seek listing on the stock market, 

only 44% showed support, while 56% disagreed. Also, 72% of 

those sampled would love to see host communities partnering with 

the universities to generate the development funding while it was 

the view 90% of those sampled that government should provide 

free social amenities in all universities. Finally, as large as 67% 

of those sampled agreed that universities currently experience 

high personnel turnover due to inadequate funding of research 

and infrastructure. 

Testing of the Hypothesis 

Empirical model specification and data analysis of funding of 

Universities by government: 

Let Q1 = NPUFG = Nigerian Public Universities 

Funding by Government 

Q2 = CEPE = Current Economic & Political 

Environment 

Q5 = CL = Corruption Level 

Q8 = GAF = Government Alone Funds 

Q11 = UAFS = Universities & Other Funds 

Sources 

Q13 = ULSE = Universities List in Stock 

Exchange 

Q14 = HCPF = Host Communities Partnering 

Q16 = UAPT = Universities & Personnel 

Turnover 

Therefore: 

NPUFG = (CEPE, CL, GAF, UAFS, ULSE, HCPF, UAT) 

The econometric equation becomes: 

NPUFG = B 0 

+ B 1 

CEPE + B 2 

CL + B 3 

GAF + B 4 

UAFS + B 5 

ULSE 

+ B 6 

HCPF + B 7 

UAPT + N 

(SPSS Package was used to run the analysis and the following 

outputs were estimated). 

Df = 98, F – Statistic calculated = 0.489 

The applicable empirical equation is as follows: 

NPUFG = 4.127 – 0.073 (CEPE) – 0.078(CL) – 0.073 

(GAF) – 0.085 (UAFS) + 0.077 (ULSE) – 0.004 

(HCPF) – 0.025 (UAPT) 

This equation implies that CEPE, CL, GAF, UAFS, HCPF & 

UAPT have indirect relationship with NPUFG. This means that 

increases in these variables will cause a reduction in NPUFG. 

Applying this to the funding of Nigerian Universities by government 

alone, shows that the current economic/political environment; the 

level of corruption in government; the sole funding of universities 

by government alone; other funding sources including those of 

host communities and universities personnel turnover are not 

favourable to the funding of public universities by government 

alone. 

F- Test for the Public Universities Funding by 

Government 

Referring also to the variance ratio, the F-test evaluates the 

overall significance of the model (Keutsoyianmis, 1977; Lind, 

Marchal & Wathen, 2005). 

From the Table above, the F calculated + 0.489 

Let the H 0 

: B1, 2,3,4,5,6,7 = 0: 

This means that the explanatory variables are not strong 



Education 

Summary of Perceptions of Accountants in Institutions of 

Higher Learning in Nigeria on the Funding Situation of the Universities 

Statistical Coefficients 

Variables B0 B1 B2 B3 B4 B5 B6 B7 P-Values 

NPUFG 4.127 0.000 

CEPE (0.073) 0.415 

CL (0.078) 0.478 

GAF (0.073) 0.547 

UAFS (0.085) 0.520 

ULSE 0.077 0.361 

HCPF (0.0004) 0.847 

UAPT (0.025) 0.796 

enough to implement any change in NPUFG. 

Since df = 98, and at & = significance level = 5% = 0.05, the 

F- tabulated at V 1 

= K – 1 = 7 - 1 = 6 and V 2 

= N-K = 98 - 7 = 

91 is equal to 2.18. Since F calculated < F tab, that is, 0.489 < 

2.18, H 0 

is accepted. This means that the explanatory variables 

have not been able to implement change in the dependent 

variable (NPUFG). This outcome is in disagreement with the 

African Political Economy Model and calls for introduction of 

other variables into the model. At this point, this serves as an 

empirical limitation to this study, which opens a significant window 

for further research. 

P- Value Tests for the Public Universities 

Funding by Government 

The P- values compare itself with the significance level (&) 

so as to determine the rejection/acceptance of H 0 

. The decision 

value is that when P-value < &, reject H0, but when P-value > &, 

Accept H 0 

. From statistical table of coefficients, all the P-values 

(0.415, 0.478, 0.547, 0.520, 0.361, 0.847 & 0.796) are greater 

than the significance level of 0.05. Hence, H 0 

is accepted. This 

means that changes in the explanatory variables do not cause 

change in the NPUFG. This implies that more efforts need there 

to be planned and implemented on them to generate the required 

change in the NPUFG. Therefore, there is need to examine the 

other reasons militating against why government ability to fund 

universities adequately. Possible reasons that come to mind 

include oil revenue, proliferation of universities; the government’s 

economic thrust, etc. 

Explanation of the Results 

The analysed results can be explained on three major bases, 

namely: 

1) How the existing economic and political environments 

and corruption hamper the ability of the government in 

funding the universities; 

(2) The Public response to the universities’ engagement in 

activities other than teaching and research as a way of 

meeting their critical financial dependence; and 

(3) Critical Resource Dependence Sources. 

How the Existing Economic and Political Environments 

and Corruption Hamper the Ability of the Government 

in Funding the Universities: 

The findings show strong agreement with the assumption 

that the present economic and political situations in Nigeria do 

negatively limit the ability of government to devote adequate 

funding to the universities. On the impact of corruption on 

the funding of education, with 84% agree and strongly agree 

responses, this finding confirms the work of Wangenge-Ouma 

and Cloete (2008) which concludes that adverse economic and 

social political situation have stood against the ability of the South 

African government in funding of higher education in that country. 

This position persuades the background that compels universities 

to seek dependence funding as opposed to waiting for government 

grants that will never arrive. 

The Response to the Universities’ Engagement in 

Activities Other Than Teaching and Research as a Way 

of Meeting Their Critical Financial Dependence Needs: 

The opinion was very strong (99%) that universities need to 

engage in other fund generating activities other than teaching and 

research. This agrees with Aina (2002) who lists other dependence 

activities as quasi business ventures like supermarket, laundry 

services, consulting and hospitality businesses. As to whether 

universities should go for outright listing on the stock exchange, 

44% show support while 56% disagree. This close rank of opinion 

may not be unconnected with the current situation of the stock 

market in Nigeria which has left so many investors with huge 

losses since the 2008 global economic melt down. 

With 61% agree and strongly agree that government does not 

fare well with funding of universities. This only indirectly affirms 

better involvement of private universities. The major sources of 



Education 

revenue for private universities are 

tuition fees and a strong emphasis 

on dependence funding from 

subsidiary quasi businesses such as 

supermarkets, confectioneries, and 

consultancy. This is a clear shift from 

about ten years ago when everyone 

looked directly at government as the 

sole funder of higher education in 

Nigeria (Okogie, 2009; Adeniji, 2008; 

Aina, 2002). However, the extent 

to which public universities should 

charge tuition fees requires further 

studies and legislative actions. 

Another dimension to the new 

paradigm is the high positive support 

(72%) for a stronger involvement 

of the host communities in the 

funding of the universities within 

their domains. Benchmarked on 

the common assumption that the 

success of the universities hold key 

advantages for the focal communities 

ranging from employment for the 

indigenes, growth in the economy of 

the relevant communities, to sociopolitical 

prominence, this makes the 

partnership of focal communities not just necessary, but, indeed, 

very beneficial for reliable funding support of the universities. 

Besides cash contribution, the communities yield support in 

the provision of agricultural lands for use of the universities 

research and commercial farming, as well as for other capital 

developments. Some of the local communities have provided 

free security (vigilante) services for the institutions located within 

their domains. 

Critical Resource Dependence Sources: 

With as high as 94% positively supporting that all universities 

should seek other ways of funding than government subsidy, and 

where 99% agree and strongly agree to universities engaging 

in other funds generating businesses outside of teaching and 

research, the shift in paradigm is very clear as compared with 

10 years ago when no one could believe this was possible. This 

indicates, in part, that time has arrived for universities to devise 

reliable dependence funding strategies to mobilise the needed 

critical resources. With as many as 73% of those sampled affirming 

that universities should charge fees to meet their annual budgets, 

the view was not all that pronounced ten years back (Wangenge- 

Ouma, 2008; Atuahene,2008). Areas of focus other than fees are 

quasi business ventures such as super markets, confectionery, 

bookshops, consulting and hospitality business (Aina, 2002). The 

universities should incorporate separate subsidiaries as strategic 

business units (SBUs) to remove the complexities of day to day 

running of commercial operations from the primary teaching and 

research focus of the universities. The commercial units should 

have their own management boards selected based on expertise 

and productivity. The universities will do well also introducing a 

third semester (Gourley, 1995) to boost their revenue generation. 

There is currently a growing positive response to this as many 

‘ 

The government should 

review the no-fees payment 

law as it affects federal 

universities currently. This is 

necessary to allow the ivory 

towers to compete favourably 

in generating external 

funding. As long as the nofees 

law is in place, the federal 

universities will continue to 

depend on government for 

their critical funding. 

‘ 

private universities now engage 

summer schools in addition to the two 

regular semesters. 

CONCLUSION 

The paper looked at the perception 

of accountants working in institutions 

of higher learning on the funding 

situation of Nigerian Universities. 

There is a strong agreement of the 

available literatures that government 

alone cannot fund the universities 

(Aina, 2002; Wangenge-Ouma and 

Cloete, 2008; Atuahene, 2008). This 

further evidenced in the growing 

support in favour of fees-charging 

in all universities in Nigeria, given 

the ailing federal economy. Other 

dependence funding sources for 

Nigerian universities apart from tuition 

have been identified to include quasi 

commercial activities such as super 

markets, bookshops, commercial 

farming, and consultancy among 

others (Adeniji, 2008; Wangenge- 

Ouma and Cloete 2008). Also, the 

addition of a third semester (Gourley, 

1995) will give the universities the additional impetus for making 

higher revenue in an average school year. With as high as 73% of 

the sample showing support for universities charging fees, this is a 

new lease of paradigm shift compared to 10 years ago, driven from 

the undercurrent of public frustration over the consistent failure 

of government in meeting the funding needs of the universities. 

Given the reported growing good performance of some of the first 

generation private universities in the country, it does appear that 

the government itself will find the new paradigm focus relieving. 

RECOMMENDATIONS 

The findings in this research evoke the following 

recommendations to make for effective funding of the 

universities: 

i. The Federal Government of Nigeria should seek a better 

funding formula for the universities such as is used in 

UK where HEFCE allocates funding on the basis of 

productivity of each university. 


July/September, 2012 

ii. 

The government should review the no-fees payment 

law as it affects federal universities currently. This is 

necessary to allow the ivory towers to compete favourably 

in generating external funding. As long as the no-fees law 

is in place, the federal universities will continue to depend 

on government for their critical funding. 

iii. All the universities should embrace the concept of 

managerial autonomy. This will help them to reposition 

for more aggressive fund generation through legitimate 

creative engagement. 

iv. The universities should vigorously seek alternative 

funding in areas such as retailing business, commercial 

fishing, poultry and cash-crops; commercialisation of 

research findings; online tutorials; manpower training

Education 

and development partnering with commerce and industry. 

v. University managements should explore engaging the 

stock market as an avenue to raise needed capital funds 

for long term development projects. This may compel 

some necessary best practices which on itself will raise 

the bar for quality management of the institutions. 

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* Mr Luke Onuoha works with the Bursary Department, 

Babcock University, Ilishan Remo, Ogun State. 



Cover Interview 

CORRUPTION: 

Whistle-Blower Approach 

Is the First Step 

It’s easy to see that 

national development is 

one critical issue close 

to the heart of the 48 th 

President of the Institute of 

Chartered Accountants of 

Nigeria (ICAN), Mr. Adedoyin 

Idowu Owolabi, BSc (Econs.), 

MILR, MNIM, FCA. When The 

Nigerian Accountant team 

led by Dayo Ajigbotosho 

(the Editor), Muyiwa Dare 

and Sunkanmi Oloketuyi 

sat with him in his office after 

his investiture, he spoke 

extensively on the nation’s 

dwindling economy, corruption, 

national development and the 

Accounting profession. Not 

only that, he demonstrated 

an awesome understanding 

of the history, operations and 

affiliations of ICAN. 

At the end, the highly 

vocal professional, lecturer, 

consultant and entrepreneur 

rolled out suggestions on 

how to move Nigeria forward 

economically. One such 

suggestion which appears 

to be the ruling passion of 

his presidency is the whistleblower 

approach to tackling 

corruption. Excerpts:- 




We congratulate you on your election as the 48 th President 

of ICAN. How has it been since your assumption of office 

Interesting but challenging. Interesting to the extent that having 

come a long way to this stage, I still discover that there are many 

more things to do. Let me say it is more and more challenging 

because of peoples’ expectations from outside this room and I 

thank God we are forging ahead. On how I got here, of course, 

I have said it many times. One, through hard-work: two, by the 

grace of God. There is a path which ICAN has not waived and 

which I’m sure ICAN is not ready to waive — you must show 

enough interest in serving the Institute and such interest must 

be expressed in writing so that you commence your service by 

belonging to some of the Committees of Council. 

Not only that, you must have shown interest in service by 

serving at the district level. ICAN operates on committees and 

districts basis. This is what I mean. The ICAN constituency all 

over the world has been broken down into 46 District Societies. 

These district societies are appendages of ICAN that carry the 

Institute to our members, irrespective of their locations. It will be 

quite difficult to ask every member of ICAN to start coming to 

Idowu Taylor everyday to learn about the Institute. Yes, the world 

has become a global village, hence we have a website, but many 

members will not visit the website regularly and we have to cater 

for their needs. So, physically on geographical location basis, 

we must take ICAN to them, to their doorsteps and 

that is the purpose the district societies serve, not 

only in Nigeria but other countries because out of 

the 46 district societies, there is one in London, and 

one in the U.S. 

Apart from visiting the website, apart from 

receiving mails and other correspondences from the 

Institute, every member in a particular geographical 

location not too far from the relevant district societies 

can belong to these district societies. They can 

interact and fellowship with one another. They can 

share their problems and they can know more about 

the Institute. That is the purpose of setting up the 

district societies. You must have shown enough 

interest at that level and at committee membership 

level. By then you can conveniently say that you 

are well known by your professional colleagues, 

hence, you can go in for Council election. If you 

are fortunate to be elected into the membership of 

the Council of the Institute, you will now realise that 

serving the district society is even a small thing. Serving on the 

Council of the Institute is bigger because for wanting to serve 

in the Council of the Institute, you must be prepared to serve in 

many committees. You must be prepared to sacrifice a lot for the 

Institute. The service we are talking of here does not have any form 

of remuneration. It does not carry any stipend. It’s pure service. 

Unless you can really sacrifice pro-bono, you can’t really belong. 

Having done that for a long time — it is not even a matter of 

two three years or seven, eight years, it is a matter of serving 

diligently for an average of thirteen to sixteen years. If there is 

no blemish in your character and you are deemed to be a hard 

worker and a man of integrity, then the Council may decide to elect 

you to the position of 2 nd Deputy Vice President, which I passed 

through; and that means you are now part of the Presidency of 

ICAN. And again, it is just like comparing serving at district society 

level and at Committee level with serving at Council level. When 

you now serve at the Presidency level, you will discover that it is 

a different ball game because at that level, you will automatically 

find yourself in the midst of the top echelon of the Council that 

will be taking decisions. At that level, decision making becomes 

the main thing for you. Whatever the President has in mind, he 

shares with the other members of the Presidency. The Presidency 

for your information is made up of the 2 nd Deputy Vice President, 

the 1 st Deputy Vice President, the Vice President, President and 

the Immediate Past President. And when you become the 2 nd 

Deputy Vice President, it implies you have signed off your time; 

that you are ready to serve the Institute for the next five years 

until you exit Council after serving as immediate Past President. 

The Council has a number of specific roles that will be 

performed by each of the members of Presidency, depending on 

his experience, his ability and his availability to serve from time 

to time. By the grace of God, those levels I have passed through 

until I became the President. Let me mention this, because of the 

succession plan, though it has never happened: people always 

think that it is automatic for you to become ICAN President 

once you become the 2 nd Deputy Vice President and I always 

tell them: No. I always tell them to just keep praying to God for 

good health, long life, etc and that you are not found to be unfit 

either in terms of probity and accountability, soundness of mind 

or for whatever reason. If you are found guilty of any criminal 

offence, I don’t see how you can progress either to become a 

“The Institute is of the opinion that if we are 

able to protect this last category of Nigerians 

and they are able to talk without losing their 

jobs and their lives, it will definitely encourage 

Nigerians from other classes to be bold enough 

to say no to corruption. That Bill is not just to 

encourage them to say no to corruption, it is 

going to suggest some penalties to be meted out 

to corrupt members of the society” 

2 nd Deputy Vice President or the President. If you are not found 

guilty of any offence, an election has to be conducted. A person 

may be the only candidate for that election in which case they 

are electing him unopposed. But at least, statutorily, that election 

must be conducted and it must be seen that your colleagues on 

the Council still find you to be a fit and proper person to be the 

ICAN President, otherwise, nothing happens. 

When you became President, you definitely have some 

areas you want to concentrate on during your presidency. 

You had a focus or a pet project. What is it you consider so 

important that you want to pursue vigorously during your 

tenure 

Yes. I would say it is divided into two. First, continuation of 

those projects embarked upon by my predecessors in office 

which were not fully implemented but which are on-going. It is 

my intention to conclude them. Secondly, the new projects being 




introduced, and these include the formation of a Forum of Vice- 

Chancellors and a Forum of Rectors of Polytechnics. These two 

are not too difficult. We have been talking to them and it’s a matter 

of bringing them together, inaugurating these fora and giving them 

their terms of reference. 

But the one we need to really work on, and which we have 

already started, is the promotion of the whistle blower bill. Like 

I normally say, all over the world, unfortunately, the way people 

look down on Nigeria when it comes to the issue of corruption, 

speaks volumes of our character as a nation. It is as if all over 

the world, only Nigerians are corrupt. My reaction is: No. It is 

not only Nigerians that are corrupt. And let’s be 

realistic, if some of these western countries, Europe 

and America are not aiding and abetting them, 

Nigerians or Nigeria would not be this corrupt. As 

Walter Carington former United States Ambassador 

to Nigeria said, “for every bribe giver, there must 

be a bribe taker.” So, for every corrupt Nigeria, 

particularly when it comes to corruption outside 

the shores of Nigeria, there must be somebody 

there that is also benefitting. So, you can imagine 

a situation where that somebody comes from a 

western country. So they are not saints and we are 

not. In actual fact, I will say we even have some 

Nigerians that are more saintly than our accusers. 

However, we know that corruption has eaten 

deep into our system at all levels and unfortunately 

even at children’s level. It is as bad as that. Why 

and how did we get into this There are various 

reasons. Some do not know any other system or 

way than to be corrupt. It is part of them. Some 

don’t want to be corrupt but because they believe 

the larger society is like that, they want to dance 

along with them. Some for one reason or the other 

don’t even want to get involved but unfortunately, 

when they think of the bread and butter their job 

is bringing to their dining table at home, at best, 

they would rather keep quiet; they don’t want to 

talk about it. And if you ask them, they will say: leave me alone, I 

don’t want them to know that I said anything. They are quiet over 

it, because if they talk, they may lose their source of livelihood. 

That is the bitter truth. 

Apart from that, there are so many professionals in practice 

either in the Accountancy profession or others that should have 

spoken boldly against certain practices to their clients, especially 

when those clients are powerful. But they are also afraid to lose 

their professional fees. They probably look elsewhere and think 

corrupt practices should be swept under the carpet. But the 

Institute is of the opinion that if we are able to protect this last 

category of Nigerians and they are able to talk without losing their 

jobs and their lives, it will definitely encourage Nigerians from 

other classes to be bold enough to say no to corruption. That Bill 

is not just to encourage them to say no to corruption, it is going 

to suggest some penalties to be meted out to corrupt members 

of the society. 

It is a very long journey to eradicate corruption from our system 

and society. But the journey of a thousand miles must begin with 

a step. So, we are of the opinion that ICAN should assist the 

government by taking this first step. Once we are able to embolden 

enough Nigerians to kick against corruption, you will discover that 

it is a big sin to be corrupt in Nigeria. 

I will be too grateful if for one reason or the other, that pet 

project that we have started working on, is completed within my 

presidential year. But if it is not, it will become another project for 

ICAN to be carried to another presidential year until it is concluded. 

You will agree with me that ICAN cannot sit down and pass this 

Bill to law. It is a Bill that must go to National Assembly and when 

it gets to National Assembly, there are procedures to be followed 

to pass that Bill into law. 

One thing about corruption in this country is that when it 

comes to the point of meting out punishment, quite a number 

of powerful people often get away with murder in Nigeria. Is 

there anything you think can be done in this regard because 

this is one of the criticisms the Nigerian leadership has been 

pelted with over time — not having the will to implement 

punishments where sacred cows are involved. What solution 

do you proffer to this 

Well, it is rather unfortunate that in Nigeria we pay a lot of lip 

service to the rule of law in the sense that we talk about it in all 

sectors of the society, but we do not bring all Nigerians under 

the rule of law. As much as possible, ICAN will encourage the 

government to ensure that the citizenry is brought under the 

rule of law. Also, we should be mindful of one thing, when you 

have sacred cows in any society, that society cannot progress. 

You’ve said it all about the influential people, but who are these 

influential people Are they not Nigerians If rules are put in place 

and we allow the judiciary to do its work without being influenced, 

definitely, these rules will work. One risk we run in Nigeria that 

has inherent dangers staring us in the face is that when you put 

a rule in place and you do not allow that rule to work, that rule 

amounts to no rule. So, all these laws that were not allowed to 

work amount to no laws. Until the federal government decides to 

be honest and truthful enough to ensure that these rules work, 

we stand the risk of having every rule bastardised. If we are able 




to put in place enough checks and balances in our system, and 

nobody tries to influence anything, definitely, the laws will work. 

We also notice that you have a theme for this presidential 

year which is: “Building a Solid Structure on a Solid 

Foundation”. Would you want to clarify further what you 

mean by that 

There is no builder that erects a building without ensuring that 

the foundation is good enough, not only to carry the building but 

also to continue carrying it. Let me give you an example. When 

you go to the hinterland where the land is solid, you will agree with 

me that a lot of buildings being erected would go with the normal 

foundation. But if, all of a sudden, you see a man coming with 

lots of equipment and pile-driving, you will ask him, what type of 

structure are you trying to put in place that you are pile-driving. 

Historically, ICAN came into existence through the Law of 

Parliament in September 1965. The founding fathers of ICAN 

have been magnanimous enough to have founded an Institute 

that would outlive them. Lots of our founding fathers have since 

died. They put in place a structure to ensure ICAN cannot die. 

They did not put in place a structure that will serve their own selfish 

reasons only. It is like for the first time, we saw a group of black 

men that behaved like the Unilever family, the Volvo family and 

many other families that found the multinationals we all dance 

around today. They founded ICAN, they put it in place and ensured 

that it worked in their time and it was likely to work for generations 

coming behind them and I must confess it has been working. So, 

we’ve had 47 Presidents sit in the Chair of ICAN as Chairman 

“One risk we run in Nigeria that has inherent 

dangers staring us in the face is that when you put 

a rule in place and you do not allow that rule to 

work, that rule amounts to no rule. Until the federal 

government decides to be honest and truthful 

enough to ensure that these rules work, we stand 

the risk of having every rule bastardised. If we are 

able to put in place enough checks and balances in 

our system, and nobody tries to influence anything, 

definitely, the laws will work” 

of Council. To my mind, it was more difficult then 47 years ago. 

That’s a long time ago and we have been doing so well. If a baby 

born that time got married early enough, that person must have 

been a grandparent by now. ICAN has really come of age with 

generations of accountants passing through. I said generations 

of Accountants… it might interest you that along the line, even 

some non-Nigerians, foreigners embraced the ICAN vision. They 

were either members of ICAN that have passed unto glory or 

those living and are still members of ICAN. 

Apart from that, the small baby born 47 years ago has belonged 

to a number of international organisations. ICAN was a foundation 

member of the International Federation of Accountants (IFAC) and 

this is the body that regulates accountancy profession worldwide. 

It has over 120 member nations all over the world. ICAN is a 

foundation member of the Association of Accountancy Bodies 

in West Africa (ABWA). ICAN is a foundation member of Pan 

African Federation of Accountants (PAFA), which takes care of the 

interests of Chartered Accountants all over the African continent. 

But it does not stop there. There are some United Nations bodies 

like UNCTAD and so on and so forth. When they discuss financial 

matters, accounting matters, auditing matters, taxation and other 

matters that relate with the ancillary functions of a Chartered 

Accountant, ICAN is never left out. If you look around, you will 

discover that not only locally in Nigeria have we been asked in 

the past or are we being asked to mentor other bodies to belong 

to this international association. We’ve been asked and we are 

still being asked to mentor bodies all over Africa to belong to 

these international associations. The World Bank picked ICAN 

and one other IFAC member to start promoting accountancy 

education in Africa and so on and so forth. If we start discussing 

the international links of ICAN, we may not leave here today. 

Maybe we should leave that for another day or another interview 

entirely. We felt that if these old men that we call our founding 

fathers never laid a solid foundation for ICAN, it wouldn’t have 

been reckoned with all over the world the way it is reckoned with 

today. We all told ourselves that, let’s be realistic, we have a solid 

foundation all along, then what kind of structure do we want to put 

on this foundation Of course, it must be a solid structure. The 

man in the hinterland that is pile-driving is not wasting his time 

and money by stock piling for a one-storey building, two- storey 

building, ten-storey building. He is pile-driving 

for a foundation that will be good enough to take 

about 100 storey building. If the foundation is not 

solid enough, it will not take that kind of building. 

Now that we are approaching our golden age, 

we must begin to build a solid structure with the 

brand name of ICAN that will surpass any other 

structure of the accountancy and finance world. 

That’s where we are going. Our Lord Jesus 

Christ said to Peter: “on this rock I will build my 

church…”, that is, on the structure that he had 

groomed up to that point, on the foundation that 

he had laid for his disciples to be able to run 

the Christendom in the future. He said on the 

solid rock he would build his Church. That was 

over 2000 years. We are all witnesses to what 

Christianity has become today, the way it evolved 

over the past over 2000 years. We have all seen 

it. We have all read the history. That is the kind of 

structure we want to put in place for thousands 

of years to come. Definitely, those years will not 

meet us in office, it will not even meet us in this world, but people 

would say, thank God they were there at the appropriate time, 

hence that theme for this presidential year. We want to use it as 

a pivot to get into our golden age. ICAN is 48 years now and we 

have started preparing for our 50 th anniversary. We want to use 

that theme to propel us into our 50 th anniversary. 

We would want you to say some specific things about the 

solid structure you want to build this presidential year. Apart 

from the whistle-blower bill you mentioned, are there other 

specific things We also noticed that you said you would 

work closely with the government. How close do you want to 




get to government Is it going to be a case of just supporting 

government without being able to say what government is 

doing wrong 

Thank you very much. If I say we are going to work more 

closely with government, it means the Institute has already been 

partnering with the government. It has been assisting in budget 

matters; it has been assisting in being advisors to government 

on matters relating to the economy. A lot of our members are out 

there serving the government. They fall back on the Institute to 

seek professional advice from time to time. 

But now, what we are saying is that we want to build a better 

relationship with the government, a better relationship to the extent 

that we do not lose our identity as a professional Institute that can 

act in advisory capacity to government. Once you lose that identity, 

you are part of them — whatever they do. But if you don’t lose that 

identity, you still have the power, the right, the desire, the ability 

to shout, to scream out and the whole world will listen to you and 

eventually say that ‘you said it but government never listened’ or 

that ‘you advised and government was wise to take to advice’. 

So, we are putting in place a more virile Inter-Governmental 

Relations Committee to work with the federal government, to 

work with the National Assembly. In the past, we were using our 

members who are in politics who are in the Assembly but they 

never had time. In fact, they were not meeting regularly. This time 

around, we have said our strategy would be to use members 

who have time, either as retired top Civil Servants that know the 

workings of government or members who are in politics but have 

not reached the very top, and know the workings of the various 

political parties, either in or out of the Assembly or the Senate. If 

we use such members such as those I just mentioned, there is 

the likelihood that they would be holding meetings. There is the 

likelihood that when their peers or colleagues start to complain 

about government pronouncements, it is this committee that would 

now take time to fashion out responses to these comments and 

cries, proffer solutions, and go on to government either through 

the relevant politicians, through the National Assembly, through 

the Senate, even state Assemblies and make suggestions to 

them. We must not throw out the fact that ICAN is a subset of the 

Nigerian society. So, with 35,000-strong members Institute, it’s 

part of Nigeria. If they are able to 

go to government and say look, 

this is what Nigerians feel, it will 

not be out of place and we will 

not be talking on behalf of ICAN 

members only. 

In actual fact, such ICAN 

members could have listened 

to other members of the society 

or other members of the society 

could have come to ICAN directly. 

You can take for example what 

we did during the oil subsidy 

withdrawal, when President 

Goodluck Jonathan came out 

and said 100 per cent removal 

of subsidy! I must give kudos 

to the Nigerian society and I 

must give kudos to the federal 

government. For the first time in 

Nigeria, we witnessed peaceful 

demonstrations, with police just 

hanging on to ensure there was peace. People were allowed to 

speak out their minds. Various bodies came out to speak their 

minds. ICAN made the public to realise that as a responsible 

professional body, we would live up to the expectation of a 

responsible corporate citizen. We would not just go out to start 

criticising the government just because it seemed to have become 

fashionable. One or two days after the whole thing started, we 

were able to bring out sufficient thoughts, sufficient suggestions 

in black and white which we released to the public and made 

sure it was sent to the federal government of Nigeria. If you had 

listened to his broadcast in resolving the matter then, you would 

have noticed he picked one or two of our points to enable the 

nation avert a very explosive situation. This is what we intend to 

do more often now. We shall continue to give advice on budget 

matters, financial matters, on economic issues, etc. 

But above all, we now intend to be carrying the feelings of 

Nigerians to government. A lot of Nigerian groups are not as 

organised as ICAN. So we believe that when there is credibility 

in what Nigerians are saying and ICAN decides to represent them 

by taking it to the government because whatever we do we affect 

the economy and accountancy is an integral part of the economy, 

Government is likely to listen more to ICAN than a group of 100, 

500, 1000 Nigerians carrying placards and protesting in front of 

the National Assembly! 

Indeed ICAN has been advising government on economic 

and financial issues. Apart from the recent one on the fuel 

subsidy removal that government took one or two points 

from, would you say you are satisfied with government’s 

response to ICAN’s advice over time 

My answer is that of dissatisfaction. The saving grace for ICAN 

has been, most times when we go out to organise these things, 

they are made public events. The whole public will know that ICAN 

is at it again. Either as an Institute or jointly with another Institute, 

they will say, ICAN is doing something. And normally we issue a 

communiqué at the end of each event. 

But at this juncture, I have to note the attitude of the leadership 

of Nigeria in the past to some of these things as summed up 

in what a former President of Nigeria said: “You may be my 

adviser. One thing for you is 

to advise me, another thing for 

me is to take your advice and 

implement it”. So, a responsible 

corporate citizen, a professional 

body well recognised all over 

the world would come out most 

times to advise government 

and, for political reasons, the 

government will say thank you, 

we shall look into it and that is the 

end of it! We want to make sure 

that the government becomes 

more responsive and we are 

appealing to the government not 

only to listen more but to sift out 

the salient points that will benefit 

the generality of Nigerians for 

implementation. 

Recently, cashless 

economy was introduced by 




the Central Bank of Nigeria (CBN) and Lagos was used for the 

pilot scheme. As an Economist and Chartered Accountant, 

what is your assessment of the scheme 

The day I first heard about cashless economy in Nigeria, I 

had a good laugh and people said, as a digital man, do I want 

to be thinking like an analogue man. I said, no. it’s a welcome 

development. It is good. It will reduce bribery and corruption 

and physical carrying of cash. There were certain things put in 

place before the idea of cashless economy came into focus. 

For example, how much an individual can withdraw, how much 

a corporate organisation can withdraw, how much foreign 

“A cashless society is based on Information Technology. 

For a policy that is going to be IT-driven, then the energy 

problem must be solved. Energy problem in Nigeria has 

become a monster. As we are sitting down here, I can 

conveniently tell you that we are running this programme 

on generator ...Definitely the project will not work. 

Your credit or debit card would not be properly read in 

the machines. At the end of the day, money cannot be 

transferred. We still have a lot of work to do on the energy 

sector before all other sectors can work” 

exchange you can carry abroad and so on and so forth. These 

are all monetary policies that Central Bank of Nigeria wanted to 

ensure would work. 

However, the most important thing, the most important 

foundation they should have laid for the cashless society did not 

work and is still not working. A cashless society that we have seen 

in developed nations, a cashless society that we have seen to 

some extent in Nigeria, is based on Information Technology. For 

a policy that is going to be IT-driven, then the energy problem 

must be solved. Energy problem in Nigeria has become a monster. 

As we are sitting down here, I can conveniently tell you that we 

are running this programme on generator. We will leave office 

in the evening, we are not sure whether there will be light when 

we get home. In actual fact, when we were much younger, what 

we learnt was that electricity from generator was an alternative 

source of power. But nowadays, out of the twenty four hours in a 

day, generator runs between eighteen and twenty hours. Which 

one is now the alternative source of power The generating set 

or PHCN 

We are all jubilating today that Lagos streets are well lit and that 

this would improve night life in Lagos and improve the economy of 

Lagos state. But go out in the night to the places where we have 

such lights, you will discover they are run on generating sets. 

When GSM came into being, every mast erected was being run 

on generating set. So, what are we saying If there is no power, 

which market place, supermarket and various establishments will 

be able to run generator as much as ICAN as an Institute will run, 

or like UAC, Cadbury, etc would run Obviously they cannot afford 

to run generator as much as that. Definitely the project will not 

work. Your credit or debit card would not be properly read in the 

machines. At the end of the day, money cannot be transferred. 

We still have a lot of work to do on the energy sector before all 

other sectors can work. Countries where similar things have been 

done successfully, they do not have energy crisis as Nigeria is 

having. Sincerely speaking, if I should talk like an Economist and 

a Chartered accountant, I am yet to believe that our cashless 

economy will be effective. 

Recently, precisely January this year, Nigeria adopted the 

International Financial Reporting Standard (IFRS). So far, 

how has it been 

IFRS is a wonderful thing. In a race 

that concerns everybody, even if you 

are coming last, it is commendable 

that at least you are not standing 

still. An athlete would not want to be 

left at the starting point when others 

are breasting the tape. Every athlete 

must run the race and of course, one 

must come first, while somebody must 

come last. I don’t think that Nigeria 

is embracing IFRS late. Even some 

states in the United States of America 

are yet to embrace it for reasons best 

known to them. It has been wonderful, 

wonderful in the sense that some of 

our regulators in this country woke 

up to start planning towards it. Some 

Institutes, especially ICAN woke up 

on time and started planning towards 

it. And sincerely speaking, I actually 

wondered whether these were Nigerians, actually planning. It’s 

a wonderful experience. Apart from that, we discovered that for 

companies quoted on the stock exchange of Nigeria, the Central 

Bank of Nigeria was very specific: January 1, 2012 and other 

aspects of the roadmap are being followed to the letter. So, Nigeria 

is not going to be left standing still in the IFRS scheme. 

Secondly, IFRS itself is a dynamic field. It keeps evolving 

almost on a daily basis. It is not something rigid stagnant. There 

have been reasons to make amendments in the recent past and 

relevant standards are being amended accordingly. So, IFRS is 

not a question of what the statement said and that is the end of 

the matter. Personally, I have been to a lot of international fora 

discussing IFRS and it’s amazing when you witness participants 

from Europe, from some areas in America, from the far East, 

discussing that they have proposed one or two amendments 

based on their own experiences to the IFRS foundation. Some 

were discussing that the IFRS foundation has just obliged them 

to alter the following things and so on. The important thing about 

IFRS is that it made financial reporting to be more standard and 

more uniform all over the world. So, we are not going to be left 

standing still. 

What are the specific steps ICAN has taken to prepare and 

encourage its members on the adoption of IFRS 

Long before now, ICAN has embarked on a lot of enlightenment 

programmes, a lot of training programmes, not only for its 

members but for the society. After training its members, such 

members are passing the skills to their clients’ staff. So, in a way, 

they are helping the larger society, not only to be aware of IFRS 




but to be well grounded in it. 

ICAN is mentoring ANAN to become a member of IFAC. 

What is now the relationship between the two bodies 

The relationship is cordial. We must distinguish between 

professional roles of ICAN and political roles of ICAN. We were 

not just quarrelling with ANAN. We have stated to the whole 

world why we were quarreling with ANAN. ANAN has applied to 

IFAC and IFAC will not just admit you as a member body. It asks 

another member body, preferably the one existing in your country 

if there is anyone, to sponsor you. They want you to be a ‘born 

again’ professional body when you are coming to IFAC. That 

is just the whole idea of mentoring and sponsoring. So, ANAN 

approached ICAN. 

The important things are: a professional body 

somewhere in the world applied to IFAC. Secondly, 

before that professional body can be brought in as a 

member of IFAC, it must be sponsored by another 

member of IFAC and mentored by another member 

or the same member sponsoring. So, we took it up 

and I’m happy that the result we have so far is going 

to be pleasant to both ICAN, ANAN and most pleasant 

to Nigeria as a whole, because when we did it, a lot 

of people commended the efforts of the two bodies. 

So the relationship between us is very cordial. They 

do visit us from time to time and we do visit them. 

In actual fact, we have even gone on an inspection 

of their Accountancy school based in Jos. We are 

working together towards their membership of IFAC. 

Of recent, they were admitted a member body of 

the Pan-African Federation of Accountants (PAFA). 

Of course we did the same assignment for PAFA. 

The Association of Accountancy Bodies in West 

Africa is seriously considering their admission into its 

membership. We are also assisting on that. Like the 

old adage says, the sky is big and wide enough for all 

the birds of the heaven to fly without jamming into one another. 

Sir, would you say the same thing about the relationship 

with CITN 

Yes. I will say the same thing of CITN. The amendment of the 

Federal Inland Revenue Service Act in actual fact specifically 

spelt out the categories of professionals that can work as 

tax consultants and administrators and they listed Chartered 

Accountants, they listed Chartered Tax practitioners, they listed 

Lawyers and so many others. So, why are we fighting 

Whatever happens in the country affects Chartered 

Accountants as well. Over a period of time now, the country 

has been battling with violence and insecurity and series 

of calamities and disasters all over the place. What in your 

view should the government do to contain these problems 

It is really unfortunate for a nation, a people that have coexisted 

for so many centuries from the days of Mali, Songhai 

empires, Oyo empire, etc in the geographical area we started 

calling Nigeria since 1914. We have co-existed in spite of our 

cultural and religious differences in a most peaceful manner. 

All of a sudden, we just discovered that things disintegrated. 

It is quite unfortunate that most of these problems arose as a 

result of political differences, making Nigerians identify clearly 

their tribes, which section of the nation they come from, making 

them to become so sentimental about the various religions they 

practice in spite of the fact that the two major religions known in 

Nigeria preach the gospel of peace. Lamentably, these political 

differences make them shed blood today to defend whatever 

positions they hold on religious matters. We shed blood when we 

talk of tribes, we shed blood when we talk of anything in Nigeria. 

It is quite unfortunate that the political terrain has enabled our 

dear country to disintegrate to this sordid level. But we thank 

God that in spite of these differences and in spite of the fact that 

a lot of people said maybe disintegration is the best option for 

the country this time around, God still kept us together in our 

large number as a nation. Even with that population and wide 

geographical coverage, God blessed us with so many natural 

resources. If only the political leadership of this country would 

be responsible enough to tap these resources and focus more 

on its usage to develop the nation now called Nigeria, then we 

would all be better off. 

But instead of doing that, all we hear is money laundering, 

all forms of corruption. In appealing to government from time to 

time, we must realise that they were put there to serve and not 

to suppress or oppress Nigerians. We’ve been appealing to the 

generality of Nigerians that just like some developed nations, 

we must learn as followership and pray fervently for our leaders 

not to mislead us. Nigeria is one of the few nations of the world 

where you see citizens curse the leadership of the nation. In other 

nations, the followership prays for the leadership and I believe God 

answers prayers. If you curse them, that means you don’t want 

anything good for your nation and God will be looking at you. Pray 

for them and God will hearken to your voice. The Israelites did it 

in the past, the Jews all over the world still do it till today. That’s 

why they are one of the most powerful tribes we have all over 

the world. The English people do it. In fact, if you go through the 

English national anthem, the first stanza prays for the Queen of 

England. The Americans do it. It is permanently in their motto “In 

God We Trust”. I remember a long time ago, when Russsia as it 

was then constituted won the junior world cup, people wondered 

that a nation like Nigeria that would pray in the football camp, that 

would pray on the football pitch could not win the world cup. But 




everything could be summed up in what some people say about 

Nigeria and Nigerians today: Nigeria, they say, is a nation that has 

the largest number of ecclesiastical institutions as mosques and 

churches, yet our minds are so far away from the almighty God 

we claim to be serving. So, right from the political class through 

the bottom of the followership, we have to wake up and be more 

responsible, be more responsive and above all believe more in 

our nation Nigeria. It is when we believe in our nation Nigeria that 

we can serve it successfully. 

The recent Dana plane crash was so pathetic: ICAN also 

lost about nine people in the accident. What do you think 

government should do to forestall future occurrence 

Let me tell you: one, the calamity that befell us from that recent 

plane crash and other calamities that befell this country before that 

one could not be divorced from the corruption in the country. How 

many Nigerians knew that the insurance of that Dana plane was 

not up to date until that crash occurred and it came to the time to 

claim insurance Nobody knew. And we were all flying Dana like 

all other airlines. Nobody has made any pronouncement that other 

“All we hear is money laundering, all forms of 

corruption. In appealing to government from 

time to time, we must realise that they were put 

there to serve and not to suppress or oppress 

Nigerians. We’ve been appealing to the generality 

of Nigerians that just like some developed nations, 

we must learn as followership and pray fervently 

for our leaders not to mislead us. Nigeria is one of 

the few nations of the world where you see citizens 

curse the leadership of the nation” 

airlines should be grounded apart from Air Nigeria and Dana. But 

quietly because of the fear of being discovered, there are some 

other airlines that have since stopped their operations. Must we 

wait for disastrous situations to happen before we do the right 

thing which is commonplace in other climes I’m asking you, how 

many Nigerians ever knew that some of these aircrafts were no 

more serviceable Yes we knew they were “tokunbo” (secondhand) 

aircraft used abroad and refurbished before bringing them to 

Nigeria, but we never knew they were that bad until when disaster 

started to happen. My suggestion is this and we should all be 

ready to make it effective: We should stop keeping quiet, even 

if you are working for these people as an employee. Remember 

our proposed whistle-blower Act. You must be able to talk out one 

day. When Dana crash occurred, their staff started talking — off 

record, names withheld! They said they had complained that that 

particular plane was faulty and should not be allowed to fly. That 

is medicine after death. The government should be responsible 

enough through the aviation industry. When it is time for an aircraft 

to be sent for service, it goes. And it should be made to undergo 

the relevant level of service. There must be a certificate to that 

effect. Sincerely speaking, I will not say it was Dana airline that 

destroyed Nigerians, it was the federal government! If the federal 

government had done its job, that particular aircraft shouldn’t have 

been flown. But because somebody somewhere or some officers 

refused to perform their duties. The bad aircraft was allowed to fly 

until it could not fly again and when it couldn’t fly again, it came 

down and crashed with the people inside. It’s rather unfortunate. 

There is the issue of subsidy probe and the involvement 

of one of the big accounting firms; how far has ICAN gone 

with the investigation 

Let me say this, the disciplinary procedure of ICAN permits 

us to investigate cases reported to us specifically. Just like some 

few cases in the past, this case was never reported to ICAN. We 

read of this case on the pages of newspaper. But as a professional 

institute that is responsible and that regulates the activities of its 

members, we have since invited both the individuals involved 

and their professional firms. We are talking to them, we are 

investigating them and we are very happy on the discovery we 

have made so far. I don’t want to divulge so much information 

about the progress yet because I don’t want 

anything that would preempt the outcome of 

the investigation. One major thing I can assure 

you about is that at the tail end of it, when we 

publish whatever we might have discovered to 

the public, all Nigerians would be very happy 

with whatever we come up with. 

As an Ekiti man born and bred in Lagos, 

how was your growing up like 

As an Ekiti man born and bred in Lagos, 

my growing up was very rascally interesting. 

Each time relations came to visit us, our family 

house in Oyingbo was like Ayede-Ekiti in Lagos. 

Everybody coming to Lagos from areas like 

Ayede, Ikole, Oye, Itapa, etc, would just be 

sent to my parents. And at times, all of us, my 

immediate senior, my twin sisters, the one before 

them and myself would go round the compound 

or to our rooms and we would start mimicking 

these people. Even when we were allowed to 

go out of the compound to play with friends, we would gist our 

friends about strangers coming to our house, wearing this and 

not wearing that and so on and so forth. 

Those of us who grew up in Lagos didn’t know any Nigerian 

tribe. We didn’t know of any other religion apart from Christianity 

and Islam. On the tribal issue, we didn’t give a damn where 

anybody came from. We didn’t know who came from Ekiti, who 

came from Abeokuta, Ijebu, Ondo, Kano, Kaduna or anywhere. 

We were all speaking Yoruba. We all stayed together. We all 

played together. We grew together. We were highly detribalised. 

On the religious front, we discovered that during each Christian 

festival, we all celebrated together. A lot of our friends would 

come to our house, particularly during Christmas and Easter. 

They would eat with us, play with us. We all had parties together. 

During Muslim festivities, we would also be together. What they 

call fuji music today emanated from ‘Were’ songs they sang to 

wake Muslims up during Ramadan fasting period. Whenever they 

were singing the song to wake Muslims up, all of us would also 

wake up. We found it so interesting then. But just like what we 

are saying about the leadership of the country, the leadership of 




Nigeria threw everything into the wind. 

How did you get into Accountancy profession 

My coming into accountancy is also very interesting. I was 

a science based student and one that believed and so much 

loved numerate subjects. I gained admission into the university 

to read biological sciences, initially believing to change over to 

read medicine. But interestingly, due to one reason or the other, 

one of my brothers was at Yaba College of Technology reading 

Accountancy up till HND level and passing his professional 

examination of ACIS, and I saw him as somebody who was much 

okay. Apart from that, we have some family friends like ICAN Past 

Presidents Balogun Omidiora and Kola Bajomo, always coming 

around to see our parents. I so 

much admired them. I then became 

interested in either becoming a 

Doctor or a Chartered Accountant. 

So when I got into Ife, I 

discovered that I was a playful 

student, playful in the sense that I 

was not in the habit of sitting down 

reading voluminous pages. I was 

one of the best science students at 

the Methodist Boys High School in 

my generation. So, I did not crash 

out of science, I did not leave the 

sciences because of failure. But I 

just realised that for these numerate 

subjects, I would just sit in class 

and listen carefully and the moment 

the teacher had taught us the basic 

principles very well, and had taught 

us how to apply them, especially 

those that hinged on formulae, I 

was very much at home with them. 

I now started to enjoy mathematics, 

Statistics, etc. when I came into Ife 

through biological sciences, and when it came to changing my 

course, medicine accepted me, but the faculty of science was 

not ready to release me. They said they couldn’t be releasing 

their best students for medicine, pharmacy and engineering. I 

said okay, let me go on. I just had a brain wave. I was passing 

but I was not enjoying what I was doing. I then walked up to my 

elder brother who was then working in the bursary department 

of University of Ife and said I wanted to change to Economics. 

He asked if I had thought it over and I said yes. I said I would 

read Economics and specialise in Accounting and go to write my 

professional examinations. 

The pattern in my family was this: you would be counseled 

but you would not be forced to do what you didn’t want. He sat 

me down and counseled me. He said I should tell them at home 

if that was what I wanted to do, because “it is a good profession 

and it’s your life”. Something interesting happened thereafter. I 

got into Economics. The following year, in preparation for the take 

off of a full-fledged department of Accountancy in the Faculty of 

Administration, Ife stopped specialisation in Accounting in the 

department of Economics. This implies that those of us who are 

to graduate after that year with BSc Economics with specialisation 

in Accounting would not enjoy exemptions from ICAN. When I 

heard that, you could imagine how sorrowful I became. I went 

back to my elder brother and he said if it would take you a million 

year to become a Chartered Accountant since you are interested 

in it, stick to it. 

I had a friend, an old friend of mine, who had finished his OND 

in Accounting from Yaba College of Technology and was doing his 

industrial attachment, Fola Adeola. We met and he had started 

writing his ACCA from Yaba Tech then and we were discussing. 

When I told him what the problem was, he said well, if it was going 

to take ten years to become a Chartered Accountant, he was 

going to achieve it. And I said to myself, this is somebody in my 

generation having the same idea which my brother was trying to 

sell to me. I decided to ponder over it and said I would have my 

first degree in Economics and would go on to do Accountancy. 

I must also thank God for one of my Lecturers then, late Mr 

Edward Ayoola. He was the third 

or fourth Chartered Accountant 

to qualify in Africa. He was 

an Associate Professor at the 

University of Ife then. He was very 

close to my father-in-law, Michael 

Omolayole. You know I got married 

to a family friend, my childhood 

friend. Mr. Ayoola called me one 

day and said: if you eventually 

get married to Michael’s daughter, 

he will be proud of you if after 

finishing your Economics, you go 

ahead to write your professional 

examination in Accountancy. He 

said even if I wanted to do Masters, 

I must first become a Chartered 

Accountant which I set out to be. 

Succintly, he said to me: mind you, 

with your BSc Economics and 

your ACA, you will always be in 

the crème of the society. He was 

my Lecturer. He was not obliged 

to encourage me but he felt that 

some of us who were young men should be properly guided. And 

he brought back the picture of Balogun Omidiora and some other 

people that I used to see walking in and out of our house for one 

reason or the other, smartly dressed, so forward looking in life, 

etc. I just said to myself, I must be someone like that. That was 

it. I thank God that I took that decision. 

Finally, you work hard, you are an ardent Golfer, how do 

you relax Is Golf the only game you play 

No. I play virtually all games but I play golf more often these 

days. Fortunately, the game I play most now, golf: takes about 

four to five and a half hours to play a round of golf. After which 

you are expected to sit down relax with whoever you have played 

with and continue to discuss business which you might have been 

discussing while playing the game. That’s one. 

Two, I’m a member of a number of family clubs, I’m a member 

of Ikoyi club 1998, Lagos club, Ikeja Golf club, Lagos Country club 

and as a social scientist, you see, wherever you have two, three or 

more people coming together for the same purpose they form part 

of that society, they socialise together. So I socialise a lot and it 

might interest you to know, without any regret and without mincing 

words, I do club a lot but I’ll only do it when there is chance for it. 

I don’t play too much but when there is time for it, I do. Anyone 

who works so hard surely has the right to enjoy. 



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Election 

ICAN ELECTS NEW OFFICERS 

The investiture of Mr. Adedoyin Idowu Owolabi, BSc (Econs), MILR, MNIM, FCA, as the 48 th President of the Institute of Chartered 

Accountants of Nigeria, ICAN took place on Wednesday, May 30, 2012 at the Council Chamber of the Institute’s Secretariat, Idowu 

Taylor Street, Victoria Island, Lagos. Owolabi had been elected by his colleagues on the Council as President at the same venue on 

Thursday, May 24, 2012. 

After the investiture ceremony, other officers were elected as follows: Alhaji Kabir Alkali Mohammed, mni, FCA, Vice President; 

Mr. Chidi Onyeukwu Ajaegbu, ACS, MBF, FCA, 1 st Deputy Vice President; Otunba Samuel Olufemi Deru, FCA, 2 nd Deputy Vice 

President; and Deacon Titus Alao Soetan, FCA, the Institute’s Honorary Treasurer. The officers will run the affairs of the Institute 

for the next one year. 

The new President, 

Mr. Adedoyin Idowu 

Owolabi, BSc (Econs), 

MILR, MNIM, FCA, was 

educated at the then 

University of Ife, Ile Ife 

(now Obafemi Awolowo 

University) where he 

graduated with a BSc 

(Hons) in Economics 

in June 1980. Owolabi 

did his mandatory 

National Youth Service 

in the Statistics Section 

of the Crude Oil 

Marketing Department 

of the Nigerian National 

Petroleum Corporation 

(NNPC). In 2002, he 

bagged a Masters degree in Industrial and Labour Relations 

(MILR) from the University of Lagos. 

He joined the firm of Messrs Akintola Williams and Co (AW 

& Co) in 1981. By 1985, he had qualified as an Associate of 

ICAN and was admitted a Fellow of the Institute in 1996. At AW 

& Co, Owolabi had varied experiences in the areas of Audit and 

Assurance, Taxation, Consulting, and Secretarial Practice. He also 

lectured Economics and Auditing in the firm’s Training School. In 

December 1988, he left AW & Co to join a new insurance company, 

The Nigerian French Insurance Co Ltd. as the pioneer Head of 

Finance and Administration. He displayed the quality of his training 

by putting in place a virile accounting and administration system 

for the company and later ensured its full computerisation. He saw 

the company through the accounting and administrative rigours of 

being listed on the floor of the Nigerian Stock Exchange. 

In 2007, having joined in doing the ground work for the 

recapitalisation of the company as demanded by Government 

fiat, he retired to commence his Accountancy practice, made up 

of Doyin Owolabi & Co Chartered Accountants and Doyin Owolabi 

Consulting Associates. He also went into Livestock farming by 

setting up a Piggery in the same year. 

A multi disciplinary professional, Owolabi was elected into the 

Governing Council of ICAN in 1998 and has served the Institute in 

many ways up to Chairmanship level of virtually all the standing 

committees of the Council. 

Apart from his contributions to the Accountancy profession 

and ICAN in particular, his contributions also included the 

following: Chairman of the Accounting Technical Committee of 

the Nigeria Insurers Association; Chairman of the NIA committee 

that reviewed the exposure draft of the Accounting Standard for 

Insurance business; Chairman of the committee that looked into 

the problems of Multiple Taxation of Insurance business; Member 

and subsequently the Coordinator of the Forum of Chartered 

Accountants in Business (FOCAB) for ICAN. This he later did also 

for the Association of Accountancy Bodies in West Africa (ABWA). 

He was one of the representatives of ICAN on the Council 

of NASB (now FRCN). On the international scene, Doyin is the 

arrowhead for ICAN in its bi-lateral committee with Chartered 

Institute of Public Finance and Accountancy (CIPFA). He also 

chairs the bi-lateral committee of ICAN / Institute of Chartered 

Accountants, England and Wales (ICAEW) relationship. 

Apart from his services to his Institute and the nation Owolabi 

is the out-going Honorary Treasurer of both the Association 

of Accountancy Bodies in West Africa (ABWA) as well as The 

Association of Professional Bodies in Nigeria (APBN). He 

was the foundation Chief Examiner and Lecturer in Financial 

Statements Analysis when the institute of Stock Brokers started 

conducting its own examinations. He was an external examiner to 

the Department of Accountancy of the Lagos State Polytechnic, 

Isolo; and he lectures Management Accounting and Financial 

Securities Analysis in the Accountancy Department of Tai Solarin 

University, Ijebu Ode. 

A notable Rotarian and sportsman, Owolabi was married to late 

Dr. (Mrs) Omoyosola Owolabi and the marriage was blessed with 

three daughters. With his investiture, Owolabi became: the first 

alumnus of the University of Ife (now ObafemiAwolowo University), 

to be ICAN president; the first indigene of Ekiti state to hold this 

position; the first fully trained audit trainee of Akintola Williams & 

Co (now Akintola Williams Deloitte) 

to be ICAN president. 

The Vice President, Alhaji Kabir 

Alkali Mohammed, mni, FCIS, 

FCA who hails from Argungu, 

Kebbi State, attended Government 

College, Sokoto (1965-1969); 

Federal Training Centre, Kaduna 

(1970-1971); WestHam College, 

now East London University (1972- 

1973); Chelmer Institute of Higher 



Election 

Education, Chelmsford, Essex (1974-1977); London School of 

Accountancy (1977-1978) where he passed out as one of the 

Best Qualifying Students in 1978. He also attended the National 

Institute for Policy & Strategic Studies (2007) Kuru, Jos (Policy & 

Strategy) mni; and Havard Business School, Boston, USA (2009) 

(Corporate Governance). 

He is a beneficiary of numerous Senior Management Courses 

in Banking, Administration and Finance in the course of his career 

in Nigeria and abroad. Alhaji Mohammed started his career as 

Secretary, New Nigerian Newspapers Limited, Kaduna. He was 

Cost Accountant, CRYOPLANTS, London; Principal Accountant, 

FRCN, Kaduna; Assistant. Chief Accountant, FRCN, Kaduna; 

Chief Internal Auditor FRCN, Kaduna (1982-1984), Acting 

Bursar, University of Sokoto; Senior Manager, UBA Plc; Principal 

Manager, UBA Plc; General Manager (F&A) NEPA; Executive 

Director, (Finance & Accounts) NEPA; Diamond Bank Plc. Board 

Audit Committee Member; Director, T & T Engineering Limited ; 

Director, Deutsche Badcock Nig. Limited; Chief Executive Officer, 

Millennium Resources Limited, Abuja. 

Alhaji Mohammed has served the Institute of Chartered 

Accountants of Nigeria in various capacities from 1997 to date 

such as Member, Deputy Chairman, Chairman of the Institute’s 

various committees. His services to the public include being the 

National Treasurer, Alumni Association of the National Institute 

(AANI); Council member, Federal Polytechnic, Nasarawa; 

Member, Economic & Financial Committee (UPDEA), Ghana 

& Tunisia (1995-1999); Member, Commission on Review of 

By-Laws of UPDEA, Burkina Faso (1993). He is a receipient of 

the Kebbi State Merit Award (1997) and Kebbi State Letter of 

Commendation (1995). 

The 1 st Deputy Vice President, 

Mr. Chidi Onyeukwu Ajaegbu, 

ACS, MBF, FCA, was born in 

Kano on 9 th September 1965. 

He attended Mbutu Umuojima 

Primary School, Osisioma Ngwa 

in Abia State between 1970 and 

1976 for his First School Leaving 

Certificate, where he passed 

out with a Credit Pass in 1976. 

He proceeded to Government 

College, Lagos between 1977 and 

1982 for his West African School 

Certificate, where he came out with a first division aggregate in 

1982 and later did his GCE A’ Levels in 1984. 

He holds a Masters degree in Banking and Finance from the 

University of Lagos. He trained and qualified as a Chartered 

Accountant in Binder Balogun & Co. (BDO) between 1984 and 

1988 and rose from Audit trainee to Principal Analyst between 

1984 and 1992. He is a Fellow of the Institute of Chartered 

Accountants of Nigeria (ICAN) and an Associate of the Chartered 

Institute of Stockbroker (CIS). 

He is the founder and pioneer Chief Executive Officer of Mutual 

Alliance (A Dealing Member of the Nigerian Stock Exchange) 

from 1997 – 2008; Founder and CEO of Heritage Capital Markets 

Ltd (A Dealing Member of the Nigerian Stock Exchange) from 

2008 to date; and AGM to Executive Director designate of BCIC 

Investment Ltd/LTC Advertising (CBN Licensed Finance House) 

from 1992 to 1997. 

He has served the Institute in various capacities as Member, 

Deputy Chairman and Chairman of various committees. He 

has been a member of National Governing Council since 2001. 

He served as a member of National Governing Council of the 

Nigerian Stock Exchange between 2005 and 2008. During this 

period he served in Quotations, F & GPC committees among 

other committees of the Exchange. 

He has also served the public in numerous capacities including 

investment adviser to the Aba North Anglican Diocesan Board. 

He is married and blessed with children. 

The 2 nd Deputy Vice President, 

Otunba Olufemi Deru, FCA, 

is a fellow of both the Institute of 

Chartered Accountants of Nigeria 

(FCA) and Associate of Chartered 

and Certified Accountants of 

United Kingdom (FCCA), an 

Associate member of the Institute 

of Secretaries and Administrators 

(ACIS), Fellow of Nigerian Institute 

of Management (FNIM) and Justice 

of Peace (JP) of Ogun State. 

Femi Deru has worked in 

various capacities in the United 

Kingdom and Nigeria, as the Group 

Management Accountant of Berec Group in London and as a 

Chief Tax Officer in Her Majesty’s Tax Office in Barnet District 

Hertfordshire and Grosvenor District in London. 

In Nigeria, he worked as Chief Accountant and Company 

Secretary of Berec Nigeria Plc, Finance Director, and Managing 

Director and as Chairman from 1972 to 1998. 

A Senior Associate Consultant with Omolayole and Associates, 

a leading management consultant outfit in Lagos. He is the 

Managing Partner of Femi Deru & Associates as well as a council 

member of Institute of Chartered Accountants of Nigeria (from 

2002) and Chairman of Annual Accountants Conference 2003 

to 2005. He served as Coordinator and Secretary to Council, 

Nigerian Institute of Management 1995-1996 and the Finance 

and Investment Committee 2005 and currently the Chairman of 

the Audit committee. 

He was a council member of the Lagos Chamber of Commerce 

and Industry since 1982 and became the Chamber’s President 

from 2009 to 2011. He was Chairman Industrial Group 1995 to 

1998, Hon. Treasurer 1999 to 2002, Vice President from 2003. 

Chairman of Tenders Board 2003 to 2005 and Chairman Trade 

Promotion Board, the organiser on behalf of Lagos Chamber of 

Commerce and Industry of the Lagos International Trade Fair 

‘the biggest and the best’. 

He is a Rotarian and had served as President, Rotary Club of 

Ikeja 1996 to 1997 and District Treasurer of Rotary International 

District 9110 (Ogun and Lagos States) in 1989/90. He has 

served and represented the Organised Private Sector in various 

seminars, courses, forums and conferences where he made very 

valuable contributions. 

He is on board of private and public companies, i.e. Chairman 



Election 

Basscomm Nigeria Ltd, Director (alternate) Eterna Oil and Gas 

Plc, Governing council of Nigeria Council for Management 

Development. 

He is married and blessed with children. 

The new Honorary Treasurer 

of ICAN, Deacon Titus Alao 

Soetan, FCA, attended Premier 

Grammar School, Abeokuta (1967- 

1971), where he obtained WASC 

(Division One). He also attended 

The Polytechnic Ibadan (1973- 

1975) and made a distinction in 

OND Accountancy. He was also at 

the City of Birmingham Polytechnic, 

U.K. (1976-1977) where he qualified 

as ACCA. 

He commenced his professional 

career as Accounts Clerk at W.N 

Housing Corporation (1972 to 1973). He was the Accountant, 

Nigerian Television Authority (1978-1979). He was Audit Senior 

Manager at Z.O. Ososanya & Co (1979-1985) and became 

Partner, Z.O. Ososanya & Co (1985-1998).He was Partner, 

Oyelami Soetan Adeleke & Co (1998 to 2005) and Senior Partner 

in the same firm (2005-2008) before moving to Baker Tilly as 

Senior Partner from 2008 till date. 

Soetan has been a Council member of ICAN since 2004 and 

has served on various committees and sub committees either 

as member or Chairman. He is a versatile paper presenter and 

resource person at various levels of the Institute. He was member, 

Governing Council of Nigerian Accounting Standards Board 

(NASB); member, Budget Committee, Nigerian Baptist Convention 

(2000 - 2009); and Chairman, Nigerian Baptist Bookstore Limited 

(2001-2009). 

ICAN COUNCIL GETS 

NEW MEMBERS 

The Institute of Chartered Accountants of Nigeria, ICAN, has 

sworn in a total of seven new members into its Governing 

Council. Three of them came into Council by the 2012 ICAN 

Alhaji Tijjani Musa Isa, HRH Adaku Chidume-Okoro and 

Chief Davidson Chizuoke Alaribe 

Alhaji Mustapha Bulu Ibrahim, Mallam Ismaila M Zakari, 

Alhaji Haruna Nma Yahaya and Mr. Ganiyu O. Sanni 

Council Election which was conducted strictly via the internet 

(e-voting) on the Institute’s website. The winners of the election 

are: Alhaji Tijjani Musa Isa, FCA and Chief Davidson 

Chizuoke Alaribe, FCA both of whom were elected in the 

category of Members-in-Practice; and Her Royal Highness 

Adaku Chidume-Okoro, FCA who was elected in the category 

of Members-not-in-Practice. 

The remaining four new members joined the Council as 

Government nominees. They are: Alhaji Haruna Nma Yahaya, 

FCA; Mr. Ganiyu O. Sanni, FCA; Mallam Ismaila M. Zakari, 

FCA; and Alhaji Mustapha Bulu Ibrahim, FCA. These members 

were nominated by the Minister of Education as stated in the 

ICAN Act. 

The winners of the 2012 Election into Council were 

announced during the Annual General Meeting held on May 25, 

2012 at Muson Centre Council and were sworn-in along with the 

Government nominees at the Special Council Meeting held on 

May 30, 2012 after the investiture of the 48 th President of the 

Institute. These newly elected and nominated council members 

will join the new President and other Council members in piloting 

the affairs of the Institute for the 2012/2013 Presidential year. 

ICAN, established by the Act of Parliament Number 15 of 

1965, is empowered to set standards of knowledge and skill 

to be attained by persons wishing to become members of the 

accountancy profession. The Institute, which is the only Nigerian 

member of International Federation of Accountants (IFAC), has 

over 30,000 members and over 120,000 students on its registers 

and conducts examinations twice in a year. Its vision is to be a 

leading global professional body while its mission is to produce 

world-class Chartered Accountants, regulate and continuously 

enhance their ethical standards and technical competence in 

the public interest. 

Since its inception and in line with its motto, Accuracy and 

Integrity, ICAN examinations have been conducted without any 

leakage. Established about forty seven years ago by the Act of 

Parliament No. 15 of 1965, ICAN has been the foremost professional 

Institute in Nigeria, producing world-class professionals, 

making remarkable contributions to the nation’s development 

through its strict maintenance of high standards and regulation 

of the Accountancy profession. In line with the provisions 

of International Federation of Accountants’ Statement of 

Membership Obligation (SMO), the Institute raises its standards 

from time to time. 



From The Presidency 

ICAN Registrar, Olutoyin Adepate; 1 st Deputy VP, Chidi Ajaegbu; Akintola Williams; ICAN 

President, Doyin Owolabi; VP Kabir Mohammed; and Council member, Uche Erobu 

ICAN 1 st Deputy VP, Chidi Ajaegbu; The Doyen, Akintola 

Williams during his 93 rd Birthday on August 9, 2012; ICAN 

President, Doyin Owolabi; and ICAN VP, Kabir Mohammed 

Mr. Akintola Williams, Doyen of Accountancy Profession 

and Doyin Owolabi at the Doyen’s 93 rd Birthday 

ICAN Deputy Registrar, Admin., Soji Odukoya; Akintola Williams; Deputy Registrar, Technical 

Service, Abel Asein; Funmi Otitoju; and Asst. Director, Corporate Affairs, Dayo Ajigbotosho 

ICAN President, Mr. Doyin Owolabi makes a 

presentation of the Institute’s publications to the 

Minister of Education, Hajia Ruqayatu Ahmed Rufai 

during his courtesy visit to her office 

ICAN President and entourage pose with the Minister of Education 



LEAD PAPER: 

• 

Building Enduring Institutions for 

National Development 

PLENARY SESSION PAPERS: 

• 

Governance and Sustainable Development: 

Addressing the Leadership Challenge 

• Building Trust In Financial Report: 

Meeting Stakeholders’ Expectations 

WORKSHOP PAPERS: 

• 

Entrepreneurship: Empowering Nigerian 

Youths for Global Economic Challenge 

• Whistle Blowing: Setting a Framework for 

Corporate and Public Accountability 

• 

Doing Business In Nigeria: Fiscal, 

Legislative and Judicial Challenges 

• Financial Reporting and Value Creation 

In the Public Sector: Issues, Challenges 

and Prospects

SPECIAL ATTRACTIONS: 

• 

Business Exhibition: 

Interested Organisations are hereby 

advised to contact immediately. 

Limited spaces are available. 

• Excursion 

• 

Golf, Squash, Table Tennis and Lawn Tennis 

Tournaments 

• Time-Out with the ICAN President/Health Talk 

• 

Gala Nite/Dinner 

(Live Performance by King Sunny Ade) 

WHY 

• Promo: Attractive prizes 

REGISTRATION STRICTLY ON-LINE: 

Please go to www.ican-ngr.org for details. 

Registration for Accommodation closes on 

September 21, 2012. 

All bookings will be on 

“first-come-first-served basis” 

PERIOD OF CANCELLATION 

OF REGISTRATION 

% OF 

REFUND 

On or before August 31, 2012 50% 

On or before September 21, 2012 25% 

After September 21, 2012 

(ALL REFUNDS WILL BE MADE 

AFTER THE CONFERENCE) 

NOTE: There will be no deferment of 

Registration Fee if a participant is 

unable to attend the Conference 

NOTE: GROUP PAYMENT 

Nil 

Organisations wishing to do a group registration 

for their members of staff should pay at any of the 

designated banks and collect PIN VOUCHERS 

for them. 

YOU MUST ATTEND 

THIS CONFERENCE 

1. Listen to seasoned Speakers within and 

outside the Country. 

2. Network with over 4,000 Senior Financial 

Decision-Makers. 

3. Get updated with the latest Local and 

International development on the following 

issues/topics: 

► 

► 

► 

► 

► 

► 

Building Strong and Enduring 

Institutions 

Governance and Sustainable 

Development 

Financial Reporting in the Public 

Sector 

Entrepreneurship 

Efficacy of Whistle-blowing for 

Public Accountability 

Alternative Dispute Resolution 

Mechanism 

4. A conference that addresses the needs of all 

classes of members: the young, middle-aged 

and senior members. 

5. A conference that will impact positively on 

your professional orientation. 

For Registration, Sponsorship & Exhibition 

details, please go to www.ican-ngr.org 

or contact: 

• Oyewo — 08033791996 

• Emeghara — 08056177066 

• 

sooyewo@ican.org.ng 

graceadanna@yahoo.com 

Adesola — 08023356214 

asadeola@ican.org.ng 

OLUTOYIN A. ADEPATE, OON, FCA 

Registrar/Chief Executive 

Plot 16, Idowu Taylor Street, 

Victoria Island, Lagos 

P.O. Box 1580, Marina 

Tel: (01) 764 2294, 764 2295 

Fax: (01) 462 7048 

E-mail: info.ican@ican-org.ngr

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