UNCTAD-ISAR, FRC Partner, Empower Accountants with Modern Financial Reporting Skills

Sunday Ehigiator

The Financial Reporting Council of Nigeria (FRC), in collaboration with the United Nations Conference on Trade and Development – International Standards of Accounting and Reporting (UNCTAD-ISAR), yesterday held an exclusive one-day free workshop, where it trained professional accountants who are members of the Institute of Chartered Accountants of Nigeria (ICAN) and the Association of National Accountants of Nigeria (ANAN) on UNCTAD’s latest accounting training manual for MSMEs.

The workshop with the theme, ‘Accounting and Financial Reporting for Small and Medium-Sized Entities (SMEs),’ was a train-the-trainer engagement aimed at equipping them, and giving them models to train Micro Small and Medium Enterprises (MSMEs) in the area of financial reporting.

In his address, the CEO of FRC, Dr. Rabiu Olowo noted that micro, small and medium enterprises are universally recognised as the cornerstone of economic growth, as they form the backbone, especially for the Nigerian economy, driving innovation, creating jobs and serving as essential contributors to sustainable development, hence, the workshop centres on a subject of profound significance.

Olowo who was represented by FRC’s Coordinating Director, Accounting Standards and Sustainability Reporting, Dr. Iheanyi Anyahara, noted that, “Despite their undeniable importance, most MSMEs in Nigeria operate informally. This position keeps them in a disadvantaged state. It inhibits their access to critical resources, thereby undermining their long-term sustainability.

“Moreover, it limits their ability to secure financing, especially because of the lack of records, and records, particularly financial reports.

“We at the Financial Reporting Council are resolute in our mission to advance corporate governance and promote excellence in international reporting and sustainability.

“As critical players in Nigeria’s economic landscape, MSMEs occupy a central place in the fission of references.

“The Council aims to empower the MSMEs to try, expand and contribute appropriately to national development.

“This workshop aligns closely with the transformative agenda of President Bola Tinubu, which prioritises economic rejuvenation, inclusiveness and sustainable growth across all sectors.”

Speaking further, he said: “The empowerment of MSMEs as the bedrock of our economy is a cornerstone of this agenda, underscoring a shared commitment to building a resilient and globally competitive Nigeria.

“This workshop has been particularly designed to achieve four critical objectives that will address the unique challenges faced by MSMEs while equipping them for sustainable growth.

“Number one reason is selecting core trainers and empowering the trainers to be able to reach all MSMEs as we cannot do that in one state, and more importantly, is promoting formalisation. And this is an area we urge all the trainers to be very careful about. For most MSMEs, when they hear formalisation, their mindset goes to taxation.

“Therefore, we would like the trainers to be very conscious in spreading the news of formalisation. Formalisation has so many advantages, but because of that fear, they may not see the essence of having a formal aspect and thereby accruing all the benefits. The third objective is enhancing corporate reporting.

“We need to go beyond financial reporting and talk about corporate reporting. However, we would want people to assist them in laying the foundation for financial reporting, and by extension, corporate reporting.”

In her address, the Representative of UNCTAD Division on Investment and Enterprise, Elina Botvina, noted that, “FRC has implemented international financial reporting standards, in progress of implementing sustainability standards, and requested support to carry out an assessment of international, regulatory, and human capacity gaps in the implementation process.

“As part of the program, the organisation wishes to strengthen accounting and reporting in the MSME sector, support the formalisation of micro-enterprises, and reduce the size of the informal economy.

“The project is supported by the funds of the Kingdom of the Netherlands.

“MSMEs are the backbone of the economy across the globe and one of the major drives for innovation and development. MSMEs make up to 90 percent of the economic engine of developing countries.”

“The pilot training is also aimed at building a network among the trainers and the UNCTAD to facilitate experience sharing after the completion of the pilot training.”