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… Says The recent flooding and drought in Nigeria are examples of how a governance issue has given rise to environmental and social issues.
The over 6000 delegates that convergered on Abuja last month for this year’s Institute of Chattered Accountants of Nigeria, ICAN, conference, have commended the federal government for the establishment of the National Council on Climate Change (NCCC) and noted that it is a watershed in the efforts of the country to show commitment to environmental issues.
The accountants made this known in a comminuque issued recently after the conference.
The 52 conference of the accountants with the theme: “Nigeria: Adopting Sustainability for Economic Prosperity” also noted that a strong institutional framework is necessary for the pursuit of a sustainable economy.
According to them, “The recent flooding and drought in Nigeria are examples of how governance issue has given rise to environmental and social issues.”
On their parts, the five presidential candidates that honoured their invitation to conference, appreciate the accountants for deeping the accountancy profession and urged the Institute to, as a matter of urgency, intensify its continuing professional development programmed on environmental, social and governance issues, if its members are to play a leading role in the sustainability reporting
Below is the details of the comminuque as released by ICAN
COMMUNIQUE ISSUED AT THE END OF THE 52ND ANNUAL ACCOUNTANTS’ CONFERENCE
Introduction
The 52nd Annual Accountants’ Conference of The Institute of Chartered Accountants of Nigeria (ICAN) held from October 10 to 14 2022, at Abuja, Nigeria.
The theme of the Conference was: “Nigeria: Adopting Sustainability for Economic Prosperity”. The Conference was declared open on Tuesday, October 11 2022, by the Special Guest of Honour, His Excellency, Muhammadu Buhari, GCFR, President, Commander in Chief of the Armed Forces, Federal Republic of Nigeria, ably represented by Mrs. Zainab Shamsuna Ahmed, Honourable Minister of Finance, Budget and National Planning, who was also ably represented by Dr. (Mrs) Sarah Alade, the Special Adviser to the President on Finance and Economy. The total number of Delegates at the Conference was 6,393 with Delegates from within and outside Nigeria. The Conference had six plenaries, during which eminent scholars, professionals, and technocrats drawn from within and outside Nigeria made presentations.In addition, five of the candidates contesting for the 2023 Presidential election in Nigeria attended the Conference. They took turns to share their thoughts on the theme of the Conference and to also discuss what they will do differently, and how, if elected as president.
Observations and Recommendations at the end of deliberations, Delegates made the following observations and recommendations:
GeneralDelegates emphasised that a strong institutional framework is necessary for the pursuit of a sustainable economy.
Delegates noted the connection between governance issues, on one hand, and environmental and social challenges, on the other. The recent flooding and drought in Nigeria are examples of how a governance issue has given rise to environmental and social issues. Delegates applauded the Government for the establishment of the National Council on Climate Change (NCCC) and noted that it is a watershed in the efforts of the country to show commitment to environmental issues. The Presidential candidates that honored the Conference invitation, acknowledged the role of governance in sustainability. The Accountancy Profession & Deepening Market Offerings for AccountantsThe Institute should, as a matter of urgency, intensify its Continuing Professional Development programs on Environmental, Social and Governance issues, if its members are to play a leading role in the Sustainability Reporting and Assurance landscape.Delegates suggested that the Institute should continuously supplement its syllabi with emerging trends, such as developments in sustainability and technology, to ensure that the profession does not lag in transformations. They also urged the Institute to continue to liaise with the National Universities Commission (NUC), the National Board for Technical Education (NBTE) and other regulatory bodies in the education sector, to incorporate future developments into the curricula of the accounting departments.
Delegates urged the Institute to collaborate with the Federal Inland Revenue Service (FIRS), National Council on Climate Change (NCCC), and other relevant stakeholders and specialized institutions, to facilitate public awareness and better understanding and appreciation of the specific design features of the Climate Change Act 2021, to further Nigeria’s climate change ambition. Delegates urged the Institute to encourage the adoption of International Sustainability Reporting Standards that cover a robust carbon accounting protocol so that companies have a framework for reporting on their decarbonisation activities. Sustainability and Innovative TaxDelegates noted that tax straddles the three pillars of sustainability – Environment, Social and Governance. Tax is a valid instrument for promoting sustainable environmental practices and discouraging harmful ones. The provision for carbon taxes and emission trading in the Climate Change Act 2021 is an example. Government’s social contract and obligations to citizens are fulfilled with revenue, most of which are from taxes. Through good governance and the fulfilment of the social contract, tax compliance is achieved. Delegates recommended that Government should deepen its transparency initiative by publicly disclosing the uses of tax, as a means of driving new revenues from sustainability initiatives.Delegates noted that sustainability in revenue collection can be guaranteed through the recruitment of competent/qualified staff, adoption of appropriate technologies, and open communication channels. Delegates also observed the urgent need for the Joint Tax Board to harmonize taxes, and align technology for online verification and approvals.Sustainability Reporting and the Green EconomyDelegates supported the growing call for Public Sector Entities in Nigeria to also include sustainability activities in their reports. Delegates considered that this inclusion necessary given that the Sustainability Development Goals (SDGs) address solutions to human challenges of poverty, financial inclusion, water, inequality, climate change, etc. being faced by developing countries. Delegates resolved to include this Key Performance Indicator in the Institute’s Accountability Index.Delegates acknowledged that early adoption of the International Sustainability Reporting Standards is instrumental to unlocking the flow of capital into Nigeria for an effective transition to a sustainability based economy.Delegates urged the Financial Reporting Council of Nigeria (FRCN) to ensure that Nigeria is an early adopter of the International Sustainability Reporting Standards by working closely with relevant stakeholders and the International Sustainability Standards Board (ISSB) toward seamless and effective adoption.Delegates suggested that in adopting the International Sustainability Reporting Standards, the Financial Reporting Council of Nigeria (FRCN) should ensure a proportional and scalable framework that will enhance the effective inclusion of Small and Medium-sized Enterprises (SMEs), similar to the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) for SMEs.Delegates identified capacity building as the most critical factor for the effective and seamless adoption of the International Sustainability Standards. They urged the International Sustainability Standards Board to, as a matter of priority, assist Nigeria in building the required capacity. Delegates agreed that Sustainability Reporting, including assurance on the reports, is crucial to investors and other stakeholders who need to understand the sustainability activities of the enterprise.Transitioning to Clean EnergyDelegates acknowledged that the challenge of climate change presents an opportunity for Nigeria to transform into a green economy. A Nigerian Green economy would, for instance, build a sustainable transportation system devoid of carbon emissions, have an efficient recycling and waste management system, and lower unemployment by creating green jobs for the future, in a more diversified economy. Delegates recognised that to meet the 2060 target of a net-zero economy, the National Council on Climate Change (NCCC) should go beyond aggregating the activities of Public and Private entities. Delegates urged the Council to collaborate with relevant stakeholders to implement its mandate – produce a carbon budget, establish a climate fund and release the National Climate Action Plan, among others. Delegates agreed that to create new revenue sources, drive innovation, create jobs, and support linkages among sectors for a positive spillover of growth and productivity, the government should accelerate the implementation of the provisions of the Climate Change Act 2021, continue investment in technology, and increase spending on infrastructure.Delegates noted the nexus between energy availability and economic development and appreciated why Nigeria’s large energy deficit is responsible for the lag in economic development. Delegates noted that though Nigeria has bold and ambitious plans, concerted efforts are required to optimise the intended value. They then urged that the Nigerian National Energy Transition Masterplan be harmonized, aligned, and ultimately implemented. Conclusion In terms of economic growth and development, the adoption of sustainability practices is the current direction of travel, as it determines the flow of new and mobile factors of production. Considering her significantly youthful population and access to abundant natural resources, Nigeria is well positioned to attract this new investment that is needed for the next wave of economic prosperity. Therefore, to build a prosperous nation, all enterprises in Nigeria, including the public sector must embed sustainability practices in all their activities. Mallam Tijjani Musa Isa, BSc, MIoD, FCA Prof. Ahmed Modu Kumshe, FCA58th President, ICAN Registrar/Chief Executive, ICAN
