By Raphael Ekpang
The Nigerian Senate on Wednesday passed for the second reading a Bill for an Act to admend the institute of Chartered Accountants of Nigeria (ICAN).
The which was sponsored by Senator Solomon Adeola was debated on the floor of the Red Chambers, and widely received the supports of the Senators present at the chambers.
Leading the debate, the Senate appropriation Committee chairman, Adeola said a total of 26 amendments/ 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 with rationale to guide the debate and allow its passage for second reading.
Adeola insisted that there is a need to situate accounting practice to encompass developments since 1965 and to bring the practice to what obtains in other jurisdictions, hence the need to amend Section 1,14, 19 and inserting 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.
According to him, “Mr. President, Distinguished Colleagues, 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.
“Additionally, 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 stated further, “ 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.
“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.
Mr. President, Distinguished Colleagues I urge you to support the passage of this bill for Second Reading,” he said.
Recall that the ICAN Act, came into effect on September 1, 1965, some 59 years ago. The Act empowered the Institute to set standards and regulate the practice of Accountancy in Nigeria. In line with the dynamics of the environment, developments in the economy and changing needs of chartered accountants over the years, it has become imperative to amend certain provisions of this Act as well as insert new provisions to bring the Act up to current realities and ensure that ICAN remains adaptive, forward-thinking, and attuned to the needs of our nation.
