THE Senate has raised the alarm that a paltry sum of N100 as fine for any offence while a conviction on indictment attracts only a fine of N1,000 in the Institute of Chartered Accountants of Nigeria, ICAN was ridiculous and no longer acceptable.
Consequently, move by the Senate to Amend the 59 year old Institute of Chartered Accountants of Nigeria (ICAN) Act and for other matters connected therewith, 2024 (SB. 265) sponsored by the Chairman, Senate Committee on Appropriations, Senator Olamilekan Adeola, APC, Ogun West scaled second reading.
After it scaled second reading, the bill was referred to the Committee on Establishment to report back in three weeks.
In his remarks after debate on the general principles of the bill, the President of the Senate, Senator Godswill Akpabio who noted that an amendment to the Bill has become very imperative, said that with this, the over 50,000 applicants waiting to be members of ICAN would then be taken care of.
In his lead debate on the general principles of the bill, , Senator Adeola said, “permit me to lead the debate on this important bill for the amendment of the ICAN Act. The bill was read for the first time on Thursday November 16th, 2023.
“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.
“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 as set forth below with rationale to guide this debate and allow its passage for second reading.
“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.
“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.
“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.”
