Senate Proposes Amendments to 59-Year-Old ICAN Act

A bill seeking to amend the Chartered Institute of Accountants of Nigeria (ICAN) Act has recently passed its second reading in the Senate. The proposed legislation aims to update certain provisions of the Act, which has been in effect for 59 years since September 1, 1965. Senator Solomon Adeola (APC, Ogun West), the sponsor of the bill, highlighted the need for these amendments to ensure that ICAN remains relevant and adaptive to the changing landscape of the accounting profession in Nigeria.

Why is the Amendment of the ICAN Act Necessary?

The ICAN Act was enacted almost six decades ago, and over the years, there have been significant developments in the field of accountancy both locally and internationally. The proposed amendments seek to address the following key areas:

1. Increase in Fines: One of the main changes proposed is to increase fines payable by a member upon conviction on indictment from N1,000 to N500,000. This adjustment ensures that the penalties are more in line with current economic realities and act as a deterrent against malpractice.
2. Membership Structure: The bill aims to address the outdated membership structure of the Council of ICAN, which currently stands at 25 members. With a current membership strength of over 53,000, increasing the Council’s membership to 36 will improve representation and decision-making processes within the institute.
3. Collaboration and Synergy: Strengthening ICAN’s collaboration with other professional bodies and regulatory authorities at home and abroad is essential for knowledge exchange, harmonization of standards, and ensuring that Nigerian chartered accountants remain competitive globally.

What are the Benefits of Amending the ICAN Act?

By amending the ICAN Act, Nigeria can expect to see several benefits, including:

• Enhanced Regulation: The amendments will enhance ICAN’s capacity to carry out its mandate in the areas of regulation and compliance, ensuring that members adhere to the highest ethical standards.
• Global Best Practices: By aligning the Act with international best practices and standards, Nigerian chartered accountants will be better equipped to compete on a global scale and attract opportunities beyond the country’s borders.
• Adaptability and Relevance: The proposed changes will ensure that ICAN remains adaptable, forward-thinking, and responsive to the evolving needs of the profession and the economy.

Conclusion

In conclusion, the Senate’s move to amend the 59-year-old ICAN Act is a positive step towards modernizing the regulation of the accounting profession in Nigeria. These amendments will not only enhance the institute’s governance structure but also position Nigerian chartered accountants for success in a rapidly changing global market. By staying abreast of current best practices and regulations, ICAN can continue to play a pivotal role in shaping the future of the profession in the country.