News
4 Months after CBN’s Deadline, Banks March Lazily to IFRS
Nigeria banking industry has reported a sluggish progress in the adoption of International Financial Reporting Standards (IFRS), two years after the Central Bank of Nigeria (CBN), began moves to integrate the banking system into the global best practices in financial reporting and disclosure, Nigeria CommunicationsWeek can now report.
The CBN deadline for the adoption of IFRS was January this year and four months after, only a handful of Nigerian banks have completed or are in the process of converting to IFRS touted to have the capabilities of enhancing market discipline and reducing uncertainties which limit the risk of unwarranted contagion.
Nigerian banks and other significant public interest entities (that is, entities that are required by law to file returns to regulators) in the financial services industry are required to adopt IFRS by January 1, 2012.
Other non-listed entities and public interest entities in the financial services industry will adopt IFRS in 2013.
By that time, they are all expected to move from Statement of Accounting Standard (SAS), the accounting standard issued by the Nigerian Accounting Standards Board to IFRS
Nigeria CommunicationsWeek investigations however revealed that Access Bank, Ecobank, FirstBank, Guaranty Trust Bank, Stanbic IBTC, Standard Chartered and UBA are among the first banks to complete the transition and have as well adopted the standard for their reporting.
Others are still grappling with the challenges of complying with the new standards.
Among the major challenges banks face in adopting IFRS include understanding the value of IFRS against the current GAAP.
Banks are also finding it difficult to understand the value it will bring to their business, especially around true position of balance sheet and P&L, as well as trust from their foreign banking partners.
Prior to the adoption of IFRS, the local financial industry seemed oblivious of it and hence the huge knowledge gap around IFRS.
An IFRS expert involved in the implementation and training on IFRS who spoke to Nigeria CommunicationsWeek identified other challenges as fear of failure of the project and not getting it right, which delays its adoption.
According to the expert, this led to some banks looking for alternatives like manual conversion using excel sheet.
The expert noted some challenges around the speed at which regulations are churned out, which affects the speed at which the bank plans the projects to be compliant and make budgets.
“We have seen that while IFRS is still on going, we are hearing about Basel II about to start, seminars are being held, while this is happening, NUBAN numbering came out, suddenly, Cashless economy starts etc. The banks are constantly on the edge. So priority of projects comes into play, internal decision process delays everything,” the expert added.
Nigeria CommunicationsWeek gathered that numerous exposure drafts demonstrate that IFRS will continue to change in the near term as well as in 2012 and beyond.
Nigerian financial services entities need to think carefully about the implications of upcoming changes as well as changes likely to occur after their 2012 and 2013 changeover to IFRS.
Charley Best, vice president at IFRS Partners, said the biggest challenge for banks is the huge amount of change as regards customer master profile.
“As a background, the most important thing about IFRS is that it exposes more information and that is the challenge itself. They need to have all the details around payment history and all the records have to be up to date,” he said.
Professor Francis Ojaide, president of the Institute of Chartered Accountants of Nigeria (ICAN) said only organizations willing to embrace change, invest in capacity building both technical and human will benefit from the new financial reporting framework, which has the capacity to broaden and enhance their accessibility to global capital markets.
Benefits of adopting IFRS cannot be over emphasized as it attracts Foreign Direct Investment (FDI), reduces cost of doing business across borders by eliminating the need for supplementary information from Nigerian companies.
It gives assurance of useful and meaningful decisions on investment portfolio in Nigeria, and assures easier access to external capital for local and domestic companies.
Adoption of IFRS facilitates easy consolidation of financial information of the same company with offices in different countries, gives easier regulation of financial information of entities in Nigeria and Enhances knowledge of global financial reporting standards by tertiary institutions in Nigeria.
In a significant move to safeguard Nigeria from potential fraud, the Attorney-General of the Federation and Minister of Justice, Chief Lateef Fagbemi (SAN), has led a team of senior lawyers to represent the Federal Government at a Supreme Court hearing over the Petro Union Oil and Gas Limited case.
The development marks the first time the Federal Government was represented at such a high level since the little-known company secured a judgment from the Federal High Court in Abuja for £2.556 billion.
However, the Economic and Financial Crimes Commission (EFCC) had concluded in its investigation report that Petro Union obtained the judgment by allegedly using a Barclays Bank UK cheque to draw from an account closed five years before it was presented.
The anti-graft agency’s finding led to the ongoing prosecution of the oil company’s directors before the Federal High Court in Lagos.
The directors, Prince Kingsley Okpala, Prince Chidi Okpalaeze, Prince Emmanuel Okpalaeze, and Abayomi Kukoyi (trading as Gladstone Kukoyi & Associates), are facing a 13-count charge of conspiracy, forgery, and fraud before Justice Chukwujekwu Aneke.
Chief Fagbemi’s appearance in the controversial case is particularly notable because it demonstrates the Federal Government’s resolve to fight the March 11, 2014, court order, which directed the Central Bank of Nigeria (CBN), Union Bank of Nigeria, the Minister of Finance, and the Attorney-General to jointly pay Petro Union the judgment amount along with 15 per cent interest per annum.
During the March 17, 2025 proceedings, Chief Fagbemi led a team of lawyers, including Mohammed Gazali (SAN), a Director in the Federal Ministry of Justice, and other lawyers representing the Federal Government and its agencies.
Chief Adegboyega Awomolo (SAN) led the legal team for Union Bank, while the CBN’s legal representation was headed by Damian Dodo (SAN) alongside Mrs. Olabisi Soyebo (SAN) and others.
Chief Awomolo argued an application to amend the Notice of Appeal by adding eight additional Grounds of Appeal.
While the AGF and the CBN’s lawyers supported the motion, Petro Union’s legal team opposed it.
After listening to arguments on the matter from the lawyers, the Supreme Court reserved its ruling for a later date to be communicated to the parties.
The judgment sum against the Federal Government, CBN, and Union Bank now stands at over £15 billion, including interest—exceeding 50% of Nigeria’s foreign reserves.
Legal experts have compared this situation to the infamous $10 billion Process and Industrial Development (P&ID) case.
The troubling events leading to this judgment began in 1994 when Petro Union allegedly fraudulently obtained a cheque worth £2.556 billion from a Barclays Bank branch in the UK.
The company presented this cheque at a Union Bank branch in Lagos, claiming it was for a contract related to refinery construction and the establishment of a bank.
Subsequent investigations by the CBN and Union Bank unveiled that the cheque, dated December 29, 1994, and drawn in favour of Gladstone Kukoyi & Associates, was confirmed by Barclays Bank to be counterfeit.
Barclays Bank had also indicated that Gazeaft Limited, the issuer of the bill of exchange, did not have an account with them and was not listed as a registered company in the UK.
Despite these findings, Petro Union and its agents persisted in their claims that Union Bank had received £2,556,000,000.00 on their behalf and had transferred £2,159,221,318.54 to the CBN while retaining £396,778,681.46. This led to court actions against the CBN and Union Bank based on these dubious claims.
In a concerning development, Petro Union managed to secure a judgment by presenting an alleged statement of account from the CBN, neglecting the fact that a Central Bank serves as a banker to the government and banks, not to individual companies or persons.
Following these proceedings, both the CBN and Union Bank filed appeals to overturn the judgment, particularly as evidence of fraudulent motives began to emerge during the ongoing criminal prosecution of Petro Union and its executives at the Federal High Court in Lagos.
Additionally, information already presented to the Supreme Court suggests that Petro Union may have obtained the judgments at lower courts by allegedly providing evidence that appears to be based on falsehoods, forgery, misrepresentation of facts, and concealment.
Given Nigeria’s increasing debt profile, many observers are alarmed by the prospect of this additional £15 billion ‘debt’ looming over the nation. They are looking to the Supreme Court to deliver justice in this complex matter.
President Bola Tinubu has congratulated Dr Fene Osakwe on winning the Cyber Personality of the Year award at the 2025 Cyber Security Awards in the UK.
Dr Fene Osakwe
According to Bayo Onanuga, special adviser to the President in a statement, Dr Osakwe is the chairman of the Lagos State Cybersecurity Advisory Board and the first African to win in the Cyber Security Awards category.
He was recognised for his exceptional leadership, advocacy, and expertise in cybersecurity and data privacy, clinching the prize ahead of other finalists from the United States, the UAE, Qatar, the Netherlands, and the UK.
President Tinubu celebrates Dr Osakwe’s achievements, underscoring his immense contributions to cybersecurity and his efforts to evolve new horizons in the field.
The President described the 2025 Cyber Personality of the Year as an exceptional Nigerian and a worthy representation of Nigeria’s talented, innovative, and pace-setting youth.
While extolling the youth as Nigeria’s greatest asset, President Tinubu stated that Dr Osakwe’s nomination and subsequent win foreground the global impact of young African professionals in cybersecurity.
The President wished Dr Osakwe more success in his endeavours.
Insight Publicis, one of Nigeria’s leading integrated marketing communications agencies, has announced its decision to resign from the Airtel Nigeria account, effective immediately.
This decision follows an extensive evaluation of the engagement, during which both parties were unable to reach an agreement on terms that appropriately reflect the scope of work and the value Insight Publicis brings to the partnership.
While both organizations hold each other in high regard, the agency remains committed to engagements that align with its strategic priorities and industry benchmarks.
Speaking on this, Dolapo Ogunbambo, chief operating officer of Insight Publicis, said “Our commitment to excellence necessitates that we engage in partnerships where there is mutual alignment on value creation and strategic objectives.
“We have valued our association with Airtel Nigeria and wish them continued success in their future endeavors.”
Insight Publicis will ensure a seamless transition and remains focused on delivering exceptional marketing solutions to its diverse clientele across various industries. She said.
Founded in 1979, Insight Publicis is a pioneer in Nigeria’s marketing communications landscape, offering a full suite of services, including brand strategy, multimedia creative solutions, digital marketing, and consultancy. As part of the global Publicis Groupe, Insight Publicis combines deep local expertise with international insights to drive impactful brand storytelling and business growth.
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