Nigeria

FRC undertakes financial statements review of NNPC, PFAs, banks

The Financial Reporting Council of Nigeria (FRC) has issued new reporting guidelines to enable firms respond to prudential considerations in various sectors.

The Financial Reporting Council (FRC) is undertaking a review of the financial statements of the Nigerian National Petroleum Corporation (NNPC), Banks, Pension Fund Administrators (PFAs) and Custodians to ensure compliance with the Financial Reporting Council Act.

The Executive Secretary, Financial Reporting Council (FRC), Ambassador, Shuaibu Ahmed, disclosed this in an interview with newsmen in Abuja.

He said the Council was quiet despite the financial statement being enmeshed with lots of controversies but after the completion of the review, the Council wrote both the NNPC and the three auditors auditing them to provide them with the management letters for the Corporation.

“One of the things I also need to let you know is that we are undertaking a review of the financial statement of the Nigerian National Petroleum Corporation (NNPC).

“There have been a lot of controversies on that financial statement and we have kept quiet.

“The review has been completed and we have written both the NNPC and the three auditors auditing them to provide us with the management letters for NNPC,” he said.

Ahmed noted that the Council is expecting to get the management letters for NNPC within the next one week after which the council would look at them and invite the party to appear before them to clear some of the infractions that have been noticed.

“We are expecting to get the management letters for NNPC within the next one week or so.

“Once, that is done, we will look at them and invite them to appear before us to clear some of the infractions that have been noticed.

“At the end of the day, we will let the press know the outcome of that review” he assured.

The FRC boss also said the Council has undertaken the review of financial statements of banks, pension fund administrators and custodians over the last couple of weeks and are getting set to invite them for inspection meetings with auditors.

“We have undertaken a review of all the financial statements of the banks and Pension Fund Administrators and Pension Custodians over the last couple of weeks.

“The next step is to invite them for inspection meetings with the auditors and the entities to come and clear themselves because we have found quite a lot of infractions with the statements and after that, the next thing is to penalize them,” he said.

He noted that it is the only way to enhance the quality of financial reporting and make entities and individuals compliant with the Act.

“This is the only way we can enhance the quality of our financial reporting and make entities and individuals to be compliant with the act,” he added.

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