No, we have not heard from them.

What is the level of compliance with the IFRS standards?

You know the compliance to the IFRS is a phased issue. But it is important that we demystify this. We had standards that we were complying with under the Nigerian Accounting Standards Boards (NASB). Now, there are standards that listed and significant public interest entities must comply with. For SMEs, there is IFRS for them and there is also the SMEGAL level three for micro entities. So, they are actually in sizes and it is no longer one size fits all that we used to see. That was why it was phased. We have International Public Sector Accounting Standards issued by IFAC, which is also to be complied with by public sector entities. Remember that the listed and significant public sector entities cut over to the IFRS in January 1, 2012. For those once, we have seen close to 100 per cent compliance because if there is any of them that is still not complying now, then there is a big issue. Of course the new acting Director General of SEC cried out recently saying compliance to IFRS is mandatory for listed companies because it is a plus for the President Jonathan’s administration since he is the one that cut over this country into IFRS and that is actually driving investments. He is the one that did the legislative change that made us have the FRC. So, these are accolades to this administration and of course, the national code of corporate governance. Now, compliance for listed and significant public interest entities has been covered. Compliance by other public interest entities which includes charities, not-for-profit organisations and government institutions such as the FRC, CAC, the Nigeria Deposit Insurance Corporation (NDIC) and others. So, we are beginning to see government institutions complying with IFRS, which has never happened before. This is the first time we are actually seeing proprietary interest of government actually producing accounts that you can hold them accountable, which is what is required. If government’s institutions are actually publishing accounts, all of these issues would be taken aback. So, that is what Mr. President is talking about, that he is actually setting up institutions and not individuals. The FRC has come to stay and would continue to demand accountability that citizens can hold on to. We are looking at instances going forward, where state governments would have financial statements and the country would have a financial statement. That is what we are looking forward to. I was in a programme in Rome where it was announced that the 2013 accounts of Australia had been issued. So, we are looking forward to establishing such in Nigeria and that would be largely to the benefit of President Goodluck Jonathan’s administration because he is the one pushing that agenda. So, the accounting for not-for-profit entities is also coming up. We are also receiving that in trickles, but the one for SMEs is this year, because their cut over was in 2014.

Is it not worrisome that as at February 2015, the 2012, 2013 and even 2014 financial statements of the Central Bank of Nigeria are not available because of the issues raised about the central bank’s 2012 accounts?

For the first time, which is a plus to the President Goodluck Jonathan’s administration, the federal government has actually taken it upon itself to look at the financial statements issued by government institutions and that

If there are allegations of unremitted funds as we saw with the Nigerian National Petroleum Corporation (NNPC), where there was need to carry out a forensic audit, why can’t the federal government engage the FRC to carry out such an audit, especially at a time we are talking about austerity measure, or is it that your Council does not have the capacity to carry such task?

If you are doing forensic examination which is a specific assignment, you can call any institution to address that. But even when those reports are out, you can look at section 62 (c) of the FRC Act, it states that ‘the Council may investigate or cause to be investigated any material irregularity notified to it.’ So the question is what is material irregularity?

Material irregularity according to the law includes fraud, deliberate misstatement of financial statements, falsification, etc. So, if the government believes that it wants to have a fuller understanding of what the forensic report is saying, they can involve the FRC to give it a view. The government ordinarily, if they do not intend to engage a different entity and want to review what is happening at the NNPC, there are elaborate opportunities. The government can call in the Office of the Auditor General, it can call in the FRC.

But does the NNPC submit its financial statement to you just like other government institutions?

The NNPC is supposed to cut over to IFRS in 2013 and those 2013 reports are just beginning to come in. So, we are currently receiving financial statements of government institutions and we expect theirs to also come in any moment from now.