The Securities and Exchange Commission (SEC) has announced that transparency in financial reporting is now a legal requirement for public institutions in Nigeria, with stringent penalties for non-compliance. This declaration was made by the Acting Director General of the SEC, Emomotimi Agama, 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, stating, “It is now law to ensure transparency in financial reporting by public companies, and there are consequences for breaking the law.” He highlighted that this mandate aims to ensure that financial statements are accurate and reliable, fostering greater confidence in the Nigerian capital market.
The new regulations are expected to enhance the integrity and transparency of financial reporting, thereby improving investor trust and market stability. Agama also announced a strategic partnership between SEC and CIMA, aimed at enhancing compliance and bringing innovation to financial reporting practices in Nigeria.
“The SEC will continue to emphasize the importance of doing what is right. Being members of CIMA will enable us to leverage their expertise and resources to strengthen our financial reporting framework,” Agama stated.
This partnership is anticipated to provide additional support and resources for public institutions to comply with the new regulations, ensuring that Nigeria’s financial reporting standards meet global best practices. The SEC’s initiative underscores its dedication to promoting transparency, accountability, and investor protection within the Nigerian capital market.
