Senate Seeks To Raise ICAN Council Members To 36
A bill seeking an increment of council members of the Institute of Chartered Accountants of Nigeria passed a second reading on the floor of the Senate on Wednesday.
The resolution followed the adoption of a bill titled, “A bill for an act to amend the Institute of Chartered Accountants of Nigeria Act, CAP 15, 1965 and for Related Matters, 2023,” sponsored by the lawmaker representing Ogun West Senatorial District, Solomon Adeola.
Leading the debate, the lawmaker noted that the ICAN Act empowered the Institute to set standards and regulate the practice of accountancy in Nigeria, noting that 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 law to meet the challenges of the time.
He said, “Corporate governance of modern professional accountancy has evolved, hence the need to amend parts of Sections 2, 3 and 6 and insert new Sections 24 to 26. For instance, Section 3 of the Act is proposed for amendment because the Council of ICAN started with a 20-member structure in 1965 when membership was just 250. The number was increased to 25 subsequently by the provisions of the Act. With a membership strength of over 53,000 today, the need to increase the membership of the Council to 36 has become compelling.”
Adeola further noted that a new law to bring accounting practice in Nigeria at par with what is obtained in other countries has become necessary.
“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 Sections 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.
“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,” he added.
Speaking on the need to take sanctions for accounting malpractices seriously, the lawmaker added, “ In the 59 years Act, a proven infraction on summary conviction of any of the offences 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 offences that could lead to the loss of millions or billions of naira are 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.”
