NIRC calls for better company accounts to attract investors

The Nigerian Integrated Reporting Committee (NIRC) has called for better company accounts to attract foreign and Nigerian investors.

Chairman of the committee, Innocent Okwuosa, made the call during the committee’s recent programme organised to respond to International Integrated Reporting Council (IIRC) and its framework’s consultation.

According to Okwuosa, a better company accounts report does not only address financial performance but also addresses social and environmental performance, which speaks directly to company’s sustainability and should be embraced by listed companies in Nigeria.

Integrated reporting has been made mandatory by Johannesburg Stock Exchange (JSE) and every company listed on the JSE is expected to produce an annual report in form of integrated report, Okwuosa disclosed.

This singular action of the JSE has placed South Africa among countries with the best corporate annual reports, he said, but called on the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE) to follow the footsteps of the JSE.

It is generally agreed that investors invest in companies where their accounts are perceived more transparent, since such transparency helps bridge information asymmetry in the capital market, he said.

When questioned on the sufficiency of the International Financial Reporting Standards (IFRS) adopted by Nigeria to attract foreign investors, he noted that the adoption of IFRS was in the right direction but more needed to be done, pointing out that South Africa even adopted IFRS before Nigeria but, in addition, progressed to integrated reporting.

The establishment of the NIRC was carried out by the Institute of Chartered Accountants of Nigeria in 2018. It was formed to advocate for the adoption of integrated reporting in Nigeria, aimed at attracting foreign direct investment and strengthening the capital market.