Legislative steps have been taken by the Senate to bolster the Institute of Chartered Accountants of Nigeria (ICAN), enrich its organizational framework, and augment its regulatory authority and ethical standards in the field of accountancy.
To accomplish this objective, a bill for amending the ICAN Act Cap 15 of 1965, and addressing related issues in 2023, passed through the Red Chamber for the second reading on Wednesday.
Senator Solomon Adeola (APC Ogun West), the bill’s sponsor, presented the opening arguments and noted that the bill was first introduced on Thursday, November 16, 2023.
According to Senator Adeola, the ICAN Act, which became operational on September 1, 1965, granted the Institute the authority to establish standards and oversee the practice of accountancy in Nigeria.
“Given the changing economic landscape, environmental dynamics, and evolving needs of chartered accountants over time, it is essential to revise certain clauses of this Act and introduce new provisions to align it with contemporary realities. This will ensure that ICAN remains forward-thinking, adaptable, and responsive to our nation’s requirements,” emphasized the lawmaker.
Senator Adeola, who chairs the Senate Committee on Appropriations, disclosed that the proposed amendments to the Act involve a total of 26 modifications/insertions affecting various sections, subsections, and schedules.
He elaborated, “Accounting practices need to be updated to reflect developments post-1965 and align with global standards. Hence, amendments to Sections 1, 14, 19, and the introduction of a new Section 15 are necessary to address matters pertaining to accounting practices and the scope of activities chartered accountants are authorized to engage in under the Act.”
Highlighting the evolution of corporate governance in contemporary professional accountancy organizations, he emphasized the revision of Sections 2, 3, and 6 and the inclusion of new Sections 24 to 26.
Addressing the need for increased Council membership in ICAN, Senator Adeola pointed out, “The membership of the Council needs to be expanded to 36 members due to the current membership strength exceeding 53,000. Furthermore, these amendments aim to enhance ICAN’s collaborations with other professional bodies and regulatory authorities, at home and internationally, promoting mutual synergy, knowledge sharing, and standard harmonization to ensure Nigerian chartered accountants remain globally competitive.”
Underlining the imperative of strengthening ICAN’s capacity in the areas of regulation and compliance, Senator Adeola highlighted the necessity to amend Sections 7, 8, 11, 12, 16, 18, 20, and 21.
“An evident amendment requirement is in Section 18(5) where current fines of N100 for summary convictions and N1,000 for convictions on indictment, for offenses that could result in significant financial losses, do not serve as effective deterrents against malpractice,” he observed.
Senate President, Senator Godswill Akpabio, commended the bill’s sponsor, noting the substantial number of Nigerians seeking membership with the Institute, estimated at around 50,000 individuals.
The bill was subsequently referred to the Committee on Establishment for further legislative scrutiny, with a directive to provide a report within three weeks.