By Ajewole Joshua|ABNews|August 13, 2025
Nigeria’s business environment may soon enjoy a boost in transparency and trust as the Corporate Affairs Commission (CAC) and the Financial Reporting Council of Nigeria (FRC) move to tighten corporate governance and clamp down on irregular financial reporting.
The two regulatory bodies, during a high-level strategic meeting, agreed to work together on initiatives that could eliminate inconsistencies in the financial statements of public companies; a development analysts say will be critical in restoring investor confidence and attracting fresh capital into the economy.
FRC’s Executive Secretary/CEO, Rabiu Olowo, warned that the practice of submitting conflicting financial reports to different regulators was eroding trust in the market and discouraging both local and foreign investors. He proposed a single, centralised financial statement portal and a joint monitoring system that would make it harder for companies to manipulate their filings.
Olowo further stressed that aligning verification and certification procedures with international financial reporting standards would send a strong signal to the global business community that Nigeria is serious about corporate transparency. He also pointed to the CAC’s Beneficial Ownership Register (BOR) as a powerful tool for uncovering the real owners of companies, a key step in tackling financial crimes.
CAC’s Registrar-General and CEO, Hussaini Ishaq Magaji, SAN, described the collaboration as “strategic for economic growth,” noting that the Commission’s upcoming Artificial Intelligence-driven registration platform would integrate seamlessly with the FRC’s oversight functions. According to him, credible and consistent financial reporting is essential to a healthy investment climate.
Both agencies have set up a joint committee to identify priority actions, with capacity building, data integration, and stakeholder engagement high on the list.
Economic experts believe the move could narrow regulatory loopholes, reduce fraud, and enhance Nigeria’s ranking in global ease-of-doing-business indices; creating a more stable and attractive market for both domestic enterprises and foreign investors.
