Dr. Franca Igboka is an expert in the field of accountancy, with over 23 years of experience, 17 of which have been in senior management positions. Her current employer – Flour Mills of Nigeria Plc – is the largest flour milling group in Africa. She is the head of Shared Services of the Finance Division of FMN, accounting for the various companies within the group. Dr. Igboka is a Fellow of the Institute of Management Consultants and a Fellow of the Institute of Chartered Accountants of Nigeria (ICAN). She holds a PhD in Public Policy and Administration from Walden University U.S.A. In this interview with Casmir Igbokwe, Dr. Igboka gave invaluable advice to upcoming accountants. She also gave insights into the micro and macroeconomic challenges Nigeria is facing and suggested how Nigeria could effectively address exchange rate instability as well as how upcoming entrepreneurs could navigate through the turbulent Nigerian business environment, among others. Excerpts:
Why did you choose accountancy as a profession?
Growing up, I had a family member who worked as an accountant in the public service. He commanded respect and was admired by other family members, which ignited my initial interest in accounting. Whenever I had an opportunity to read newspapers (mostly the stale ones), I was always drawn to articles about accountants and the field of accounting. I eagerly followed a particular tabloid that published job vacancies on Tuesdays, and I took note of the numerous opportunities available for accountants.
In secondary school, I discovered my passion for the bookkeeping subject as I found it highly engaging. It represented a practical connection between science and business.
What major challenges do accountants face in the organisations where they work?
Accountants encounter a variety of internal and external challenges within the workplace. Internally, accountants function as the custodians and regulators of their organizations’ financial resources. Notably, every significant activity within an organization has financial implications, whether as an expenditure or as income. One of the most formidable tasks for accountants is to align the perspectives of various business unit leaders with the realities reflected in the accounting data. Additionally, conflicting demands often arise between departments, and as accountants assess what is optimal for the business and the available priorities, some unit heads may struggle to comprehend the underlying implications.
Externally, the volatile and unpredictable economic climate in Nigeria requires accountants to remain vigilant with respect to the costing and pricing of products and services. In a rapidly changing environment, businesses can incur substantial losses if costs are not consistently monitored and effectively recovered through appropriate pricing strategies.
Moreover, the proliferation of audits and reviews conducted by various regulatory agencies can at times overwhelm accounting departments, disrupting their operations and those of related units. Such circumstances exert pressure on human resources within these departments, potentially leading to workforce burnout or diminished productivity, or in some cases, both outcomes may occur.
What are your major achievements in your profession?
In my professional career, I take considerable pride in having achieved a significant milestone by attaining a leadership position that enables me to play an essential role in the decision-making processes of my organization. Additionally, I am particularly proud of the accomplishments of the younger accountants I have mentored, who have advanced in their careers as a direct result of my guidance and support.
Is your personal life a reflection of your professional success?
When reflecting on the personal goals I have pursued throughout my life, I can confidently say that I have made significant progress. Achieving a state of peace and comfort, and cultivating a family that brings joy and depth to my experiences are among the accomplishments I value most.
As a Fellow of the Institute of Chartered Accountants of Nigeria (ICAN), what will be your advice to upcoming accountants?
Embrace the importance of a solid foundation in both professional and academic education, as it is crucial for achieving a successful career trajectory.
Through my journey so far, I have met remarkable individuals who embody the essence of exceptional business schools. These mentors can share invaluable insights in just a few moments, offering wisdom that would normally either require significant time in a classroom or may never be achieved in such settings. Aspiring accountants are encouraged to seek out and learn from these seasoned professionals, leveraging their experiences to guide their own career paths. By embracing mentorship, you can accelerate your growth and development in the field.
In addition, self-confidence, professionalism, integrity, and boldness, paired with humility, are vital components for achieving professional success. It’s important to take initiative and actively seek out opportunities rather than waiting for them to come to you. Once you identify an opportunity, going beyond the ordinary expectations can set you apart. Strive to excel and embrace the extraordinary in your efforts, as this can help you truly stand out and reach your goals.
You have a PhD. Many women don’t usually go this far due to some factors, including nursing babies. What is the source of your power?
The foundation of my success stemmed from my determination, as the adage suggests, where there is a will, there exists a way. My ambition was fueled by a strong desire to achieve the highest standards within my profession and, more importantly, to establish a benchmark for my children. This endeavour presented significant challenges, requiring the management of multiple tasks simultaneously; however, maintaining a focus on my ultimate goal propelled my perseverance and adaptability. Ultimately, I graduated in record time and with an applaudable distinction.
In the past few years, many multinationals have left Nigeria. Why is this so and why has Flour Mills of Nigeria (FMN) not left?
The global economy has faced considerable challenges in recent times, and Nigeria is navigating these changes alongside the rest of the world. Both businesses and individuals have encountered difficulties, including exchange rate fluctuations, hyperinflation, and a decline in consumer purchasing power. However, it’s important to remember that the effectiveness of leaders often determines success in adverse conditions. Just as skilled pilots can navigate through storms safely, strong leadership can help organizations maneuver through economic turbulence. For the FMN Group, the focus on world-class leadership, and a robust brand, serve as the foundation for resilience and success in these testing times.
In your estimation, why do some companies fail or collapse after few years of operations?
The primary factor contributing to the success of any new business is the passion that its leader possesses for the its products or services. Notably, the most successful start-up ventures are often those whose offerings align with the personal hobbies and interests of their founders. As a result, these leaders tend to exert considerable effort, yet they derive enjoyment from their work, as they do not perceive a significant distinction between professional responsibilities and leisure activities. For example, a professional footballer who has enjoyed playing football since childhood will likely find it difficult to separate training from recreation. Reflecting a similar dynamic in a computer game enthusiast who becomes a game applications developer or a food aficionado who establishes a restaurant.
Moreover, the initiation of a business must be preceded by comprehensive feasibility studies. It is essential that product ranges, staffing, machinery, tools, and funding are cohesively aligned with the enterprise’s mission. A deficiency in any of these elements can lead to unfavourable business outcomes.
Nigeria is going through cost-of-living crisis. What do you think is the reason for this and what is the way forward?
The major factor contributing to the recent cost-of-living crisis in Nigeria is linked directly to the surge in exchange rates. In reviewing the causes of this factor, two key elements stand out: the change in leadership and the significant shifts in monetary policies. The implementation of a cashless economy has had a profound impact on the exchange rate crisis. The return of naira notes from households to banks, driven by compliance with the cashless policy and naira notes redesign, is a major factor. This policy, which restricts large withdrawals in naira, has forced individuals to convert their naira into foreign currencies in order to replace the naira notes returned to the banks. They convert these naira to foreign currencies and these currencies are in their houses.
It is imperative to recognize that many funds are kept outside of banks due to traceability issues, resulting in the accumulation of money at home. To effectively address the exchange rate instability, reversing the cashless policy is essential. By enabling individuals to utilize naira more freely, there is a strong likelihood that the naira will stabilize quickly. Furthermore, to mitigate the high costs associated with printing naira notes, it is suggested that, while retaining the current denominations of naira notes, the government need to consider the introduction of a naira note equivalent to one hundred dollar bill, or an amount in that bracket, thereby cutting the printing costs.
Additionally, the excessive restrictions and regulations surrounding exports are severely hampering that sector’s growth. The government must prioritize an overhaul of this system to eliminate unnecessary bottlenecks and facilitate more efficient operations in the export market. Immediate action in these areas is not only warranted but crucial for economic stability.
Your advice to upcoming entrepreneurs on how to navigate the harsh business environment in Nigeria?
For emerging businesses, it is essential to ensure that your products or services align with the needs and preferences of your target consumers. Additionally, it is important to secure the appropriate tools, funding, and human resources. The significance of engaging experts in various operational domains should not be underestimated.
In challenging environments, it may be prudent to consider scaling down operations and focusing on the aspects of the business that provide the greatest value.
It is also essential for business leaders within this space to maintain up-to-date information systems in order to effectively monitor trends and respond swiftly to emerging changes.