Reliable financial reporting crucial to Nigeria’s economic stability, vice president says

Nigeria’s economic prosperity depends not only on its oil, gas, land, people and capital, but also on whether investors trust its institutions, Vice President Kashim Shettima said. Without that trust, he warned, capital becomes cautious, investment hesitant and prosperity fragile.

Shettima made the remarks through his Chief Special Adviser on Economic Matters, Dr Tope Fasua, at the commissioning of the Financial Reporting Council of Nigeria’s new permanent headquarters in Lagos. He described financial reporting as more than a routine accounting exercise, saying corporate disclosures directly shape investment decisions and the resilience of financial markets.

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A nation may have oil, gas, fertile land, talented people, and abundant capital, but without trust, capital becomes cautious, investment becomes hesitant, and prosperity becomes fragile.

“Financial reporting is, therefore, not simply about numbers; it is about confidence in the numbers. In a serious economy, numbers must tell the truth before they can tell the story of prosperity,” Shettima said.

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Financial reporting is, therefore, not simply about numbers; it is about confidence in the numbers. In a serious economy, numbers must tell the truth before they can tell the story of prosperity.

He said President Bola Tinubu’s administration remains committed to building governance structures that can outlast individual political cycles and give domestic and international investors greater regulatory certainty. “Money does not merely follow opportunities; it follows confidence, and confidence follows institutions,” he said.

The Financial Reporting Council began in 1982 as the Nigerian Accounting Standards Board and became the country’s main financial-reporting regulator under the FRC Act No. 6 of 2011. Its remit covers financial reporting, auditing, corporate governance, valuation and actuarial standards for public-interest entities. The FRC Amendment Act 2023 expanded its enforcement powers, including penalties for reporting violations, a national repository for financial statements and early adoption pathways for IFRS S1 and S2 sustainability disclosures. Minister of Industry, Trade and Investment Jumoke Oduwole also spoke at the event.

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Money does not merely follow opportunities; it follows confidence, and confidence follows institutions.