Nigeria Has No Standards Problem, Implementation Is the Challenge – FRC

The Financial Reporting Council of Nigeria (FRC) has identified effective implementation and enforcement, rather than the adoption of international standards, as one of the major challenges confronting Nigeria’s financial reporting, auditing and corporate governance landscape.

The Executive Secretary/Chief Executive Officer of the FRC, Dr. Rabiu Olowo, stated this in a paper presented at the 31st Annual National Conference of the Association of National Accountants of Nigeria (ANAN), holding in Abuja from September 8 to 10, 2026.

The conference, themed, “Redefining the Accountant’s Role in Governance, Reform and National Development,” brings together accounting professionals, regulators and other stakeholders to examine the evolving role of the accountancy profession in strengthening governance and supporting national development.

Olowo served as Lead Presenter/Discussant for a session titled “Global Standards and National Realities.” Although he participated in the opening ceremony of the conference, his paper was delivered during the panel session by the Head of the Directorate of Inspections and Monitoring at the FRC, Mr. Stanley Aniagbaoso.

In the presentation, the FRC chief executive argued that Nigeria had made significant progress in adopting global financial reporting and auditing standards, but that the real challenge was ensuring that the standards were applied consistently, effectively and in ways that produce meaningful outcomes.

“Nigeria does not have a standards problem. Nigeria has an implementation problem,” Olowo stated.

He stressed that international standards could only deliver their intended benefits when backed by strong institutions, professional competence, effective regulatory oversight, accountability and ownership by relevant stakeholders.

The presentation highlighted the importance of institutional strength and enforcement mechanisms in translating global standards into practical improvements in Nigeria’s financial reporting and governance environment.

It also drew attention to reforms being undertaken by the FRC, particularly the Council’s move towards risk-based inspection, designed to strengthen regulatory oversight by directing attention and resources towards areas presenting greater risks to financial reporting and audit quality.

Another key initiative highlighted was the National Audit and Assurance Firms Register, which is aimed at improving transparency, oversight and accountability within Nigeria’s audit and assurance ecosystem.

The FRC also underscored Nigeria’s progress in the adoption of sustainability reporting, noting the growing importance of environmental, social and governance-related disclosures in modern financial reporting and investment decision-making.

According to the Council, building the capacity of professionals remains critical to the successful implementation of these reforms. It therefore continues to support capacity-building efforts in areas including International Financial Reporting Standards (IFRS), International Public Sector Accounting Standards (IPSAS), and sustainability reporting.

The presentation further emphasised the need for closer collaboration between the FRC and ANAN in strengthening professional competence, regulatory compliance and the overall quality of financial reporting in Nigeria.

Olowo noted that accountants and other financial reporting professionals have a critical role to play beyond the preparation of financial statements, particularly in promoting transparency, accountability, sound governance and sustainable national development.

The FRC said its participation at the ANAN conference reflects its commitment to deepening engagement with professional bodies and other stakeholders as Nigeria continues to align its regulatory and reporting environment with global best practices while taking into account the country’s unique economic and institutional realities.