CBN, banks contribute N500m towards implementation of IFRS
Wednesday, 09 May 2012 /John Omachonu / Businessday
Determined to effect a seamless adoption of the International Financial Reporting Standards (IFRS), the Central Bank of Nigeria (CBN) and commercial banks have contributed N500 million towards the project which requires all the banks to be fully compliant in their 2012 financials .
The collaboration, coming under the aegis of the Bankers Committee, will ensure that the bankers upscale their knowledge in the reporting format which is proving the Achilles heel for some banks.
Tokunbor Martins, CBN director, banking supervision department said this at the post Bankers Committee meeting in Lagos yesterday.
Martins said the contribution was towards the IFRS academy, where skills and competencies can be built for the IFRS.
She said that to underscore the importance of the policy, the meeting which was chaired by Sanusi Lamido Sanusi, CBN governor, invited Ernst and Young, which made presentation to the house, with the aim of working together for the smooth execution of the project.
She said the regulatory bank, in conjunction with commercial banks was determined to evolve a transparent and accountable banking sector.
Aigboje Aig-Imoukhuede, MD, Access Bank observed that the sector was capable and willing to support the power sector, provided the execution of the power road map was properly done. Apart from direct funding by the banks, the infrastructure bonds will assist in long term financing.
Phillip Oduoza, MD, UBA said the cashlite policy has gathered momentum, adding that as at the end of April 110,000 merchants had registered with 60,000 terminals deployed. He further said that N3.9 billion worth of transactions had been handled from January to date.
Bola Adesola, MD, Standard Chartered Bank said significant progress had been made in the area in inclusion of women in the scheme of things in the industry. Adesola said it was the expectation of the committee that by 2014, 30 percent of board seats would be for women, and 40 percent at the senior management level would be for women. Presently, the percentage is 15 and 27 respectively. He added that henceforth, 60 percent of the SMES funds from the CBN would be targeted at women- owned or managed businesses.
Speaking on the sideline, Martins, the CBN director, banking supervision further added: “The CBN has put some processes in place towards having a more transparent and accountable banking sector. And to that end, we invited Ernst & Young Consulting to brief the committee on how they intend to midwife the transition to IFRS. At the end of this year, all banks will be rendering their financial statement to regulatory bodies and SEC using IFRS.”
“The outcome of the presentation is that we are all going to be working together to make sure that that is done correctly. The banks and the CBN have contributed a sum of money to the IFRS Academy and the objective of that is to make sure that there is the required competence and skills to get this project moving forward. We are also working on a framework to address customer complaints and financial literacy. The IFRS Academy itself has a large budget, but the CBN and the banks have contributed N500 million. The sum was divided in specific proportions and the objective is to build up skills in the industry,” Martins added.