The President of the Institute of Chartered Accountants of Nigeria, Alhaji Tijani Musa Isa, says there is a need for Nigeria’s economy to revisit its environmental, social, and governance priorities to effectively participate in the competitive global space.
He spoke on Tuesday during the 52nd Annual Accountants’ Conference of The Institute of Chartered Accountants of Nigeria, in Abuja. He observed that Nigeria’s economy is not yet out of the woods explaining that the country’s economic growth rate post-COVID had decelerated, averaging 3.54% due to persistently low oil production and rising insecurity.
“Even with the recent modest diversification of the nation’s income from the export of crude oil, our export/import dynamics are still unsustainable. As long as we export primary products and import finished/processed goods, we will continue to be at the mercy of fluctuating external economic dynamics,’’ he said.
He said Nigeria should consciously deploy resources in creating the regulatory and infrastructural environments that encourage the transition to net-zero business models by enterprises.
He noted that the Export/Import index has placed significant pressure on the demand for foreign exchange. “Public debts, which were 20.5% of GDP in 2021, are estimated to reach 40% in 2024. Our continual funding of recurrent expenditure with long-term debts dooms us to continue repeating negative economic realities as no real development can proceed therefrom.’’
In line with the theme of the conference tagged, Nigeria: Adopting sustainability for Economic Prosperity, he said sustainability encourages entities to responsibly deploy financial, natural, human, and social capital for a better, cleaner, and more prosperous future.
This would avail the dual advantage of attracting more sustainable funds into the country and enhancing our social license – the perception by stakeholders that businesses and industries are acting in a way that is fair, appropriate, and deserving of trust.
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Meanwhile, The Minister of Finance, Budget and National Planning, Zainab Ahmed has put the estimated cost of financing Nigeria’s Sustainable Development Goals (SDGs) at US$100 billion.
The Minister explained that it was as a consequence that the National Development Plan (2021-2025) and associated strategies have been put in place to reflect emerging threats and opportunities and develop a clear path to reaching the nation’s goals and priorities.
Ahmed noted that the federal government “is firmly committed to the 2030 Agenda for sustainable development and the SDGs”, adding that “this commitment culminated in the recent launch of the Integrated National Financing Framework (INFF)”.
“The goal of INFF is to enhance revenue collection at the national and sub-national levels. To digitalise, optimise and make the tax system much more effective, better coordinate the budget processes, and make public spending much more effective”, she added.
The Minister listed some of the other Government Reforms and initiatives being undertaken to put Nigeria on a steady path of sustained growth to include, including strengthening and continued implementation of the Strategic Revenue Growth Initiatives to shore up Government revenues, reduce financing pressures, and expand the fiscal space.
The Minister informed the Chartered accountants that a vital component of the sustainability agenda is financial sustainability.
“Nigeria is counting on your professional support to ensure economic sustainability becomes a national culture. The National Development Plan has advanced clear strategies to intensify the transition and drive toward financial sustainability. We must deepen the revenue base of the economy through broader and strategic diversification.
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“The recent Environmental Social Governance (ESG) regulations by the Securities and Exchange Commission to catalyze, Corporate and sub-national bond issuance is also of note. Although, the total issuance size of both Federal, State, and Corporates is relatively small, given the global appetite and increasing awareness around sustainability, we believe there will be more traction.
“Combating wastage and mismanagement is a crucial component of financial sustainability, and the accounting profession does have a sacred responsibility in this regard. Sustainability reporting is becoming a growing reporting area in today’s business world.’’
The Minister then challenged ICAN to fashion and deploy practical tools that will deter the rising wave of professional abuse, unethical conduct, and jettisoning of established standards, adding that t” the Institute must take the driver’s seat in promoting the very essence of our gathering here today”.
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