Nigerian Auditors Urged to Adopt AI Responsibly with Strong Governance and Ethics

Auditors and assurance providers in Nigeria must embrace Artificial Intelligence with a firm commitment to responsibility, governance, and professional ethics, according to a joint call from the Financial Reporting Council of Nigeria (FRC), the Minister of Industry, Trade and Investment, and the Auditor-General for the Federation.

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AI is no longer a distant or emerging concept. It is already part of the business and financial reporting environment.

The "FRC 2026 Annual Audit and Assurance Summit" in Lagos focused on "Redefining Audit Integrity in the Age of Artificial Intelligence: Auditor Independence, Financial Reporting Responsibility and the Future of Assurance." FRC Executive Secretary/CEO, Dr. Rabiu Olowo, emphasized that AI is no longer a futuristic concept but a present reality transforming how financial information is generated, processed, and utilized.

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Let us ensure that the adoption of AI in audit and assurance is guided by responsibility, appropriate governance and unwavering commitment to professional ethics.

Olowo stressed the need for AI adoption to be guided by ethics and robust governance, ensuring technology enhances rather than replaces professional judgment. He posed critical questions regarding the preservation of professional skepticism in automated audits, the risks of algorithmic bias, data inaccuracies, manipulation, cybersecurity, and the paramount importance of maintaining auditor independence.

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Together, we can build an assurance profession that is technologically enabled, professionally competent, ethically grounded and worthy of the confidence of investors, businesses, government and the Nigerian public.

Representing the Minister of Industry, Trade and Investment, Dr. Chris Osa Isokpunwu cautioned against two extremes: resisting technological change and placing blind faith in AI. He advised a balanced approach, acknowledging AI's opportunities while remaining vigilant against its potential pitfalls. The summit underscored the critical need for the Nigerian assurance profession to remain technologically adept, professionally competent, ethically grounded, and worthy of public confidence.

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We should neither fear AI nor assume that AI is infallible.