Nigerian firms must strengthen financial reporting ahead of IFRS 18, says Kreston Pedabo’s Asemah
Nigerian companies are urged to improve financial reporting, internal controls and corporate governance to boost transparency and investor confidence
In Brief
- •Nigerian companies are urged to improve financial reporting, internal controls and corporate governance to boost transparency and investor confidence
- •Peter Asemah of Kreston Pedabo highlights persistent weaknesses in areas such as impairment assessments, revenue recognition and fair‑value measurements
- •The Financial Reporting Council of Nigeria (FRC) is tightening oversight, but compliance levels still vary across firms
- •Implementation of IFRS 18 will require significant investment in people, systems and continuous training
- •Strengthening reporting standards is seen as essential for sustaining market confidence and regulatory compliance
Why It Matters
Accurate and transparent financial reporting underpins investor trust, market stability and effective capital allocation. As Nigeria prepares to adopt IFRS 18, firms that fail to address current weaknesses risk misstatements, regulatory penalties and loss of stakeholder confidence. Strengthening internal controls and governance will also support broader economic development by ensuring reliable financial information for lenders, investors and policymakers.
Key Details
- IFRS 18 implementation
- Upcoming
- Common reporting weaknesses
- Impairment assessments, revenue recognition, fair‑value measurements, provisions, going‑concern evaluations, related‑party disclosures
- FRC oversight role
- Strengthening financial reporting standards and accountability
- Investment needed
- People, systems and continuous training
Context & Background
The Financial Reporting Council of Nigeria was established to oversee and improve the quality of financial reporting in the country, aiming to enhance transparency, accountability and investor confidence.
Original Reporting & Sources
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