SAN FRANCISCO, November 29, (THEWILL) – The Institute of Chartered Accountants of Nigeria, ICAN, has described the 18.3 per cent inflation rate as a bad omen that is affecting every sector of the Nigerian economy. It however expressed hopes that the figure will come down to a single digit.
The institute, in a communiqué presented to newsmen by its 52nd president, Deacon Titus Seotan, after ICAN’s 46 Annual Accountants’ Conference Communiqué in Lagos, harped on the need for the Federal Government to resuscitate the culture of saving at least 0.5 per cent of the gross income from oil operations.
This, it said, would help to insulate the local economy from the dynamics of globalization, adding that it was never too late for the country to start saving.
The chartered accountants called on Nigerians to refrain from spending huge resources annually on foreign tourism, while historical sites and festivals should be adequately developed, preserved and publicised to elicit the interest of the citizens.
They stated that there is need for government to set the pace for accountability by periodically and regularly publishing the level of achievement of the goals it set for itself, as it is done in the private sector.
While stating that public sector leaders must engage the citizenry from time to time, ICAN called on them to imbibe the culture of stewardship reporting and be prepared to held accountable.
“Although there is great concern about the growing trend towards public sector borrowing and the desire by the government to discard the cash call model of financing oil exploration, it is hoped that such borrowing by the Joint Venture partners would be optimally done and committed to the purpose of which the loans were taken,” the communiqué read, adding that government must ensure that other borrowings are judiciously committed to finance infrastructure project.
ICAN encouraged all tiers of government to strengthen their institutions, implement sound internal controls to prevent fraud, waste and abuse, saying they should also embrace good political and corporate governance for the survival and growth of businesses and continuous attraction of Foreign Direct Investments, FDIs.
“The government should further guarantee the enabling environment for doing business in Nigeria in order to attract desired FDIs into the nation’s economy. Policy stabilisation rather than policy somersault would endear investors to the country and sustain the desired growth of the nation’s economy,” it said.
While commending the efforts being made to diversify the nation’s economy and the recent discovery of huge quantity of nickel in Kaduna, the chartered accountants called on “the government should ensure this and other minerals are processed with value added before they are exported. This is to ensure that the nation derives maximum benefits from its natural endowments”.
