Institute of Chartered Accountants of Nigeria

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The Institute of Chartered Accountants of Nigeria (ICAN)
Formation1 September 1965
TypeProfessional association
PurposeTo encourage professionalism in accountancy in Nigeria
HeadquartersPlot PC. 16, Idowu Taylor Street, Victoria Island, Lagos
Location
  • Nigeria
Membership
Over 60,000
Official language
English
President
Innocent Okwuosa, Ph.D
AffiliationsIFAC, PAFA, ABWA and CAW
Website www.icanig.org
RemarksRegistrar/ CEO, Prof. Ahmed Kumshe

The Institute of Chartered Accountants of Nigeria (ICAN) is a professional accountancy body in Nigeria. It is one of the two professional accountancy associations with regulatory authority in Nigeria, the other being the Association of National Accountants of Nigeria (ANAN). [1] The relationship between the two organizations has been tense. In 2007 ICAN attempted to have a bill declaring ANAN void. [2]

Contents

Formation and growth

Logo until late 2021 Institute of Chartered Accountants of Nigeria logo.png
Logo until late 2021

The Association of Accountants of Nigeria (AAN) was formed in 1960 with the goal of training accountants, and was established in part by Akintola Williams and F.C.O. Coker, with Coker acting as its first president. [3] ICAN was created by an Act of Parliament No. 15 on 1 September 1965 from existing accounting and auditing organisations including the AAN, and is headquartered in Lagos. [4] [3] [5] As of 2020, ICAN has over 50,000 members. [5]

Standards and authority

ICAN has based its practices on those of British chartered accountancy institutes. Nigeria adopted international accounting standards with little modification. [5] It is a member of the International Accounting Standards Committee (IASC) and periodically adopts its standards. Any deviation from these standards must be disclosed in the company's financial statements. [6]

In the 1990s, ICAN predominantly had members holding qualifications from the London-based Association of Chartered Certified Accountants (ACCA). Although ICAN claimed complete independence from the ACCA, it was under attack for defending the status quo in accountancy practices and for suppressing changes to address local requirements. [7]

In August 2010, the federal government approved migration to International Financial Reporting Standards (IFRS) by 2012. [8] In May 2011, Joshua Okeowo, chairman of the Ikeja District of ICAN, said adopting the IFRS would encourage foreign investment in Nigeria and it would also "reduce cash transactions in the economy, thereby reducing the incidence of armed robbery". [9] [10]

The Companies Act of 1968 required that a duly recognized auditor audits all limited liability companies. As of 1993, only members of the ICAN who pass ICAN examinations and gain a practising certificate are qualified to be auditors. [6] Although a growing number of financial analysts in Nigeria are designated certified financial analysts, there is nobody in Nigeria that certifies analysts to produce research reports, most of which are prepared by ICAN members or the Chartered Institute of Stockbrokers. [11] A consultant offering financial services in Nigeria must be a member of either ANAN or ICAN. [12] In March 2011, Oladapo Afolabi, Head of the Civil Service, said that professional certificates of associations such as ICAN and ACCA could be used in recruitment and advancement in the public service, but could not be required. [13]

Relationship with ANAN

The Association of National Accountants of Nigeria (ANAN) was chartered on 25 August 1993. [14] The government had given ANAN the mandate to compete with ICAN, and by 1994 the two organisations fought for control of chartered accountants in Nigeria. [7] In 2002, ICAN petitioned the courts to disqualify and/or bar Clement Akpamgbo from representing ANAN, and the matter was referred to a lower court. ANAN appealed the decision, but it was dismissed for lack of merit. [15] In November 2007, a federal high court in Lagos dismissed a suit by ICAN requesting the court to declare that the decree establishing ANAN was void. [2]

In March 2009, the ANAN president, Samuel Nzekwe, rejected an attempt by ICAN to set auditing standards for its members. He said that the Nigerian Accounting Standards Board (NASB) Act 2003 said that only the board could set standards for the accounting profession. [16]

In June 2010, Godson Nnadi, Executive Secretary of Nigeria Accounting Standards Board, spoke in favour of a new body to set accounting and auditing standards for Nigeria and other African nations, which would be independent of both ANAN and ICAN. [17]

Other professional bodies

In May 2008, the House of Representatives rejected a bill to establish the Chartered Institute of Management Accountants of Nigeria (CIMA) as an alternative to ANAN and ICAN. The House was concerned about proliferation of accounting bodies. [18] ICAN was strongly opposed to establishment of CIMA, while ANAN said it supported the proposal given the dynamics of the profession. [19]

In December 2009, there were delays in the passage by the Senate of bills on the Institute of Chartered Public Accountants (CPA) and the Chartered Institute of Management and Cost Accountants (CIMCA). [20] The bills had been approved by both houses during the administration of President Olusegun Obasanjo. Still, he had failed to sign them into law before the end of his term. As a result, President Umaru Yar'Adua had to resubmit the bills when he took office in 2007. [21] ANAN did not object to the new organizations but ICAN expressed concerns on the grounds of proliferation. [20] As of March 2010, the bills had still not cleared the Senate. [21]

In May 2011, Sebastian Owuama, President of ICAN, attended the annual tax conference of the Chartered Institute of Taxation of Nigeria (CITN) in Abuja where he called for an end to the squabble between ICAN and the CITN. The move was welcomed by CITN president Rasaq Adekunle Quadri. [22]

In May 2011, retired major general Sebastian Achulike Owuama, the 46th president of ICAN and the 16th president of the Association of Accountancy Bodies in West Africa, was elected president of the newly created Pan-African Federation of Accountants (PAFA).

Controversy

Scandals of banking malpractice were exposed in 2009, with the Central Bank of Nigeria leading investigations that led to bank closures and dismissal of directors, some of whom were arrested by the Economic and Financial Crimes Commission. Olutoyin Adepate, the ICAN registrar, said "the current crises should be fully investigated and persons found guilty sanctioned according to the laws of the nation... the larger interest of the national economy and the Nigerian people must be defended at all cost". [23]

Fellows/notable alumni

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References

  1. ↑ Yushau Abdulhameed Shuaib. "MEMBERSHIP OF PROFESSIONAL BODIES". Archived from the original on 2011-07-22. Retrieved 2011-05-30.
  2. 1 2 Mohammed Shosanya (23 November 2007). "ICAN Loses Bid to Void ANAN". Daily Trust.
  3. 1 2 Tom G. Forrest, International African Institute (1994). The advance of African capital: the growth of Nigerian private enterprise. Edinburgh University Press. p. 111. ISBN   0-7486-0492-8.
  4. ↑ O'Regan, David (2004-10-20). Auditor's Dictionary: Terms, Concepts, Processes, and Regulations. Wiley. ISBN   978-0-471-68465-7.
  5. 1 2 3 David O'Regan (2003). International auditing: practical resource guide. John Wiley and Sons. p. 82. ISBN   0-471-26382-6.
  6. 1 2 Gebre Hiwet Tesfagiorgis (1993). Emergent Eritrea: challenges of economic development. The Red Sea Press. p. 160. ISBN   0-932415-91-1.
  7. 1 2 Cheryl R. Lehman (2004). Re-Inventing Realities. Emerald Group Publishing. p. 23. ISBN   0-7623-1154-1.
  8. ↑ Odidison Omankhanlen (30 August 2010). "IFRS convergence and financial sector reforms". Nigerian Tribune .
  9. ↑ "Institute wants 'International Financial Reporting Standard' adopted". Next (Nigeria) . May 23, 2011. Archived from the original on June 16, 2013. Retrieved 2011-05-31.
  10. ↑ "ICAN wants lFRS adopted for net investment inflows". Business Day (Nigeria) . 21 May 2011. Archived from the original on 28 September 2011. Retrieved 2011-05-31.
  11. ↑ Adewale Dada (2006). Broad Street: A Guide to Investing in the Nigerian Stock Market. Lulu.com. pp. 70–71. ISBN   1-84728-509-0.
  12. ↑ Barry Curnow, Jonathan Reuvid (2003). The International Guide to Management Consultancy: The Evolution, Practice and Structure of Management Consultancy Worldwide, Volume 1. Kogan Page Publishers. ISBN   0-7494-4079-1.
  13. ↑ "NCE Okays ICAN, ACCA for Recruitment in Public Service". Daily Champion . 18 March 2011. Retrieved 2011-05-31.
  14. ↑ "NIA STRENGTHENS INTERNATIONAL TIES WITH NIGERIAN ACCOUNTING BODY" (PDF). Institute of Public Accountants. 18 November 2010. Retrieved 2011-05-30.
  15. ↑ "ANAN's Appeal Against ICAN Suffers Setback". Daily Champion . 25 June 2002. Retrieved 2011-05-30.
  16. ↑ Adelanwa Bamgboye (29 March 2009). "Anan Faults Ican on Audit Standards". Daily Trust. Retrieved 2011-05-30.
  17. ↑ Peter Egwuatu (28 June 2010). "NASB Clamours for Independent Regulation of Financial Reporting". Vanguard (Nigeria) . Retrieved 2011-05-30.
  18. ↑ Stanley Nkwazema (15 May 2008). "House Halts Proliferation of Accounting Bodies". ThisDay . Retrieved 2011-05-30.
  19. ↑ Inalegwu Shaibu (26 February 2009). "Ican, Anan Disagree Over Cima". Vanguard. Retrieved 2011-05-30.
  20. 1 2 Mike Odiakose (6 December 2009). "Senate and Politics of Accounting Bodies". Daily Champion . Retrieved 2011-05-30.
  21. 1 2 Mike Odiakose (11 March 2010). "Time For Senate to Revisit Bills On Accounting Bodies in Nigeria". Daily Independent. Retrieved 2011-05-30.
  22. ↑ Iheanyi Nwachukwu (19 May 2011). "ICAN, CITN agree to down divide". Business Day (Nigeria) . Archived from the original on 28 September 2011. Retrieved 2011-05-31.
  23. ↑ Demola Abimboya (30 August 2009). "Pay or Go to Jail". Newswatch (Nigeria) . Retrieved 2011-05-31.
  24. ↑ Admin, Checkout Magazine. "Ganduje Appoints New Rector for State Poly, Council Members for Maitama Sule University, DG KANINVEST & Diaspora | Checkout Magazine" . Retrieved 2023-01-04.
  25. ↑ Akintola Williams
  26. ↑ "Franklin C.O. Coker | Zaccheus Onumba Dibiaezue Memorial Libraries". zodml.org. Retrieved 2023-10-18.
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