The Securities and Exchange Commission (SEC) has declared that transparency in financial reporting is now a legal requirement for public institutions in Nigeria, with stringent consequences for non-compliance.
The Acting Director General of the SEC, Emomotimi Agama, made this announcement during a recent meeting with a delegation from the Chartered Institute of Management Accountants (CIMA) led by its President, Sarah Ghosh, in Abuja.
Agama emphasized the SEC’s unwavering commitment to enforcing these new regulations. “It is now law to ensure transparency in financial reporting by public companies, and there are consequences for breaking the law,” he stated.
According to him, this mandate will ensure that financial statements are accurate and reliable, fostering greater confidence in the Nigerian capital market.
Announcing SEC’s partnership with CIMA, Agama said that it is strategic move to enhance compliance and bring innovation to financial reporting practices in Nigeria. “The SEC will continue to emphasize the importance of doing what is right. Being members of CIMA allows us to introduce innovative practices to our capital market.”
Agama assured that the SEC would continue to propagate what a CIMA qualification can have for its members so that they can partake of the benefits therein.
In her remarks, the President of CIMA, Sarah Ghosh stated that the association is centered on innovation, sustainability, and inclusion.
Ghosh said CIMA is approaching more regulatory bodies to ensure that everyone is given the opportunity to understand what the association stands for and its contribution to enhancing reporting on financial statements of public companies.