A bill seeking to increase council members of the Institute of Chartered Accountants of Nigeria (ICAN) passed the second reading during plenary on Wednesday in the Senate.
The decision followed the adoption of a bill titled ‘A bill for an act to amend the Institute of Chartered Accountants of Nigeria Act, CAP 15, 1965 and for Related Matters, 2023’ sponsored by Senator Solomon Adeola.
Leading the debate on the bill, the Senator explained that the ICAN Act empowered the Institute to set standards and regulate the practice of accountancy in Nigeria, adding that in line with the current realities in the economy as well as changing needs of chartered accountants over the years, it had become imperative to amend certain provisions of Act to align with the current realities.
According to him, there is need for a new law to align accounting practice in Nigeria with global best practices had become imperative and the Legislature would give its support to ensure this.
Adeola clarified: “There is a need to situate accounting practice to encompass developments since 1965 and to bring the practice to what obtains in other jurisdictions, hence the need to amend Sections 1,14, 19 and inserting a new section 15, all of which deals with issues of accounting practice and all areas that a chartered accountant is entitled to practice under the Act.
“This amendment aims to strengthen ICAN’s collaboration with other professional bodies and regulatory authorities, both at home and abroad. Such collaborations will foster synergy, knowledge exchange, and harmonization of standards, guaranteeing that Nigerian chartered accountants remain at par with global best practices and their global counterparts.
“Corporate governance of modern professional accountancy has evolved, hence the need to amend parts of Sections 2, 3 and 6 and insert new Sections 24 to 26.
“For instance, Section 3 of the Act is proposed for amendment because the Council of ICAN started with a 20-member structure in 1965 when membership was just 250.
“The number was increased to 25 subsequently by the provisions of the Act. With membership strength of over 53,000 today, the need to increase the membership of the Council to 36 has become compelling”, the lawmaker added.
“There is a need to enhance the capacity of the institute to carry out its mandate in the area of regulation and compliance. This has necessitated the need to amend sections 7, 8,11,12, 16, 18, 20 and 21,” he added.
Speaking on the need to take sanctions for accounting malpractices seriously, the lawmaker added, “ In the 59 years Act, a proven infraction on summary conviction of any of the offences attracts a paltry N100 fine while a conviction on indictment attracts only a fine of N1,000. You will agree with me that these sanctions for offences that could lead to the loss of millions or billions of naira are not a deterrent to malpractices.
“These amendments collectively aim to strengthen the legislative framework, expand the institute’s structure, and enhance regulatory powers and professional integrity within the accountancy profession as in other jurisdictions of the world and global best practice”, the lawmaker added.
