Vice President Kashim Shettima has declared that reliable and transparent financial reporting forms the bedrock of investor confidence and national economic stability, emphasising that sustainable economic prosperity cannot be achieved without strong, credible regulatory institutions.
Speaking through his Chief Special Adviser on Economic Matters, Dr Tope Fasua, during the official commissioning of the new permanent headquarters of the Financial Reporting Council of Nigeria in Lagos, Shettima noted that while the country possesses abundant natural resources and capital, institutional trust remains the ultimate catalyst for sustainable economic growth.
“A nation may have oil, gas, fertile land, talented people, and abundant capital, but without trust, capital becomes cautious, investment becomes hesitant, and prosperity becomes fragile,” Shettima said.
The Vice President asserted that financial reporting transcends routine accounting metrics, stressing that transparency in corporate disclosures directly influences investment decisions and overall market resilience.
He said, “Financial reporting is, therefore, not simply about numbers; it is about confidence in the numbers. In a serious economy, numbers must tell the truth before they can tell the story of prosperity.”
Shettima highlighted that the administration of President Bola Tinubu remains firmly committed to building durable governance structures that transcend individual political cycles and provide long-term regulatory certainty for domestic and international investors.
He added, “Money does not merely follow opportunities; it follows confidence, and confidence follows institutions. A credible financial reporting ecosystem lowers information asymmetry, improves investment decisions, strengthens corporate accountability, supports better allocation of capital, protects investors, enhances the credibility of our markets, and ultimately contributes to economic growth.”
The FRC, originally established as the Nigerian Accounting Standards Board in 1982 before its transformation under the FRC Act No. 6 of 2011, serves as the primary regulator overseing financial reporting, auditing, corporate governance, valuation, and actuarial standards across public interest entities in Nigeria.
In recent years, the council has significantly expanded its enforcement scope following the enactment of the FRC Amendment Act 2023, which strengthened its statutory powers to penalize reporting infractions, establish a national repository for financial statements, and implement early adoption pathways for International Financial Reporting Standards (IFRS) S1 and S2 sustainability disclosures.
Also speaking at the event, the Minister of Industry, Trade, and Investment, Dr Jumoke Oduwole, reaffirmed that regulatory predictability and strong corporate governance are essential drivers of national competitiveness in attracting long-term foreign direct investment.
“Investors understand commercial risk; they assess it, price it, and make decisions accordingly, but what is much harder to price is regulatory uncertainty,” Oduwole said.
She noted that financial reporting and audit oversight sit at the core of economic resilience, adding that ongoing cross-border engagements between the FRC Nigeria and the United Kingdom Financial Reporting Council on audit regulatory equivalence will further enhance the global credibility of Nigerian firms.
She said, “Investors cannot confidently commit capital to numbers they cannot trust. Companies cannot sustainably lower their cost of capital where disclosure is weak, and markets cannot efficiently allocate resources where accountability is uncertain.”
In his welcome address, the Executive Secretary and Chief Executive Officer of the Financial Reporting Council of Nigeria, Dr Rabiu Olowo, described the commissioning of the new headquarters as a historic milestone that ends the council’s 44-year search for a permanent institutional home.
“Today is not simply opening a building; today is about opening a new chapter in the history of an institution,” Olowo said.
He noted that a permanent headquarters reflects stability, regulatory independence, and institutional dignity necessary to effectively enforce corporate governance, actuarial standards, and valuation frameworks across public interest entities.
“A headquarters is not merely bricks and mortar; a headquarters is an institutional expression of permanence, stability, independence, credibility, and dignity,” he added.