The Nigerian Senate on Wednesday passed for second reading a bill for an act to amend the Institute of Chartered Accountants of Nigeria (ICAN) act.
This followed a bill sponsored by chairman of Senate Committee on Appropriation, Senator Adeola Solomon Olamilekan (APC, Ogun West).
Justifying the bill, he said a total of 26 amendments and insertions are contained in the proposed amendment of the Act affecting sections and subsections of the Act as well as the Schedules of the Act.
In a lead debate, Senator Olamilekan said the bill was read for the first time on Thursday November 16th, 2023, saying there is a need to situate accounting practice to encompass developments since 1965 and to bring the practice to what obtains in other jurisdictions.
Specifically, the lawmaker noted the need to amend Section 1,14, 19 and insert a new section 15, “all of which deals with issues of accounting practice and all areas that a chartered accountant is entitled to practice under the Act”.
He said “corporate governance of modern professional accountancy organizations has evolved, hence the need to amend parts of Sections 2, 3 and 6 and inserting new Sections 24 to 26.
“For instance, Section 3 of the Act is proposed for amendment because the Council of ICAN started off with a twenty-member structure in 1965 when membership was just 250. The number was increased to twenty-five subsequently in accordance with the provisions of the Act. With membership strength of over 53,000 today, the need to increase the membership of the Council to 36 has become compelling”.
Continuing, Senator Olamilekan said “this amendment aims to strengthen ICAN’s collaboration with other professional bodies and regulatory authorities, both at home and abroad. Such collaborations will foster synergy, knowledge exchange, and harmonization of standards, guaranteeing that Nigerian chartered accountants remain at par with global best practices and their global counterparts”.
He said there is a need to enhance the capacity of the institute to carry out its mandate in the area of regulation and compliance. “This has necessitated the need to amend sections 7, 8,11,12, 16, 18, 20 and 21. A glaring example for amendment is Section 18(5). In the 59 years old Act, a proven infraction on summary conviction of any of the offenses attracts a paltry N100 fine while a conviction on indictment attracts only a fine of N1,000. You will agree with me that these sanctions for offenses that could lead to loss of millions or billions of naira, is not a deterrent to malpractices”.
Senator Olamilekan explained that these amendments collectively aim to strengthen the legislative framework, expand the Institute’s structure, and enhance regulatory powers and professional integrity within the accountancy profession as in other jurisdictions of the world and global best practice.
Meanwhile, Senate President, Senator Godswill Akpabio, who presided plenary on Wednesday referred the bill to senate committee on banking, insurance and other financial institutions for further legislative work and report back in there weeks.
