Weak Ethical Leadership Undermining Economic Growth, Stability, Financial Reporting Council Warns

The Financial Reporting Council (FRC) of Nigeria has warned of the dangers posed by anemic ethical enactment to the country’s economical progress.

The enforcement caput and CEO of the FRC, Dr. Rabiu Olowo, who sounded this warning, emphasised that ethical enactment is the instauration for economical resilience and a cardinal operator for Nigeria’s sustainable development.

Olowo spoke during a sheet league connected “Ethical Leadership: Strengthening Professional Accountants for Economic Transformation” astatine the opening of the 55th Annual Accountants Conference with the theme, “Building Resilience – Aligning Reforms for Nigeria’s Development” noted that past provides ample grounds of however mediocre ethical choices could bring down institutions, economies, and adjacent nations.

He said, “We callback the illness of Enron and WorldCom successful the aboriginal 2000s — events that triggered sweeping planetary fiscal reforms. Closer to home, we person witnessed scandals that person undermined nationalist institutions, outgo taxpayers billions, and frightened distant investors.

“In astir each case, the basal origin was not a deficiency of method expertise but a nonaccomplishment of ethical judgment.

Without morals fiscal statements go fiction, capitalist assurance evaporates, superior markets turn fragile, nationalist institutions suffer legitimacy, corruption thrives. Ethical nonaccomplishment is not simply a idiosyncratic lapse — it is simply a systemic risk.”

Represented by coordinating director, Directorates of Corporate Governance, Inspections and Monitoring, FRC, Titus Osawe, Olowo said for Nigeria to unlock its potential, it indispensable align economical reforms with motivation reforms, adding that “resilience without morals is hollow. Reforms without integrity volition illness nether the value of distrust.”

He said arsenic the state strives for economical diversification, inclusive growth, and investor-driven development, it indispensable fortify the institutions that underpin fiscal transparency and accountability.

He said, “Professional accountants are cardinal to this mission.

Our relation is not passive. We are not simply fig crunchers — we are federation builders. We basal astatine the intersection of finance, governance, and development.”

According to him, to physique the resilience Nigeria needs, ethically beardown professionals indispensable pb the charge, and this is wherever the Financial Reporting Council (FRC) of Nigeria comes in.

He stressed that “ethical enactment is not a slogan — it is simply a practice. It demands courage. The terms of short-term summation achieved done compromised morals is acold higher than immoderate contiguous benefit.”

He said to physique resilience and align reforms with nationalist improvement goals, “we indispensable anchor each betterment successful ethical practice”.

He said the FRC remained committed to moving with stakeholders to deepen ethical enactment crossed the country.

Olowo said, “But the Council cannot bash it unsocial — it requires each accountant, each committee member, each financier, and each policymaker to marque regular choices that bespeak integrity.

“Ethics is not a brushed issue; it is simply a hard operator of development. Ethical enactment is not a constraint connected nett — it is the instauration of sustainable growth.

He said, “Ethical enactment indispensable beryllium embedded successful systems, not near to chance. Through the issuance and enforcement of cardinal frameworks specified arsenic the Nigerian Code of Corporate Governance (NCCG) 2018, Audit Regulations (2020), and International Financial Reporting Standards (IFRS). The FRC ensures that ethical behaviour is institutionalised wrong fiscal reporting and governance systems.”

Continuing, the FRC brag said, “As Nigeria strives for economical diversification, inclusive growth, and investor-driven development, we indispensable fortify the institutions that underpin fiscal transparency and accountability.

“Professional accountants are cardinal to this mission. Our relation is not passive. We are not simply fig crunchers — we are federation builders. We basal astatine the intersection of finance, governance, and development.”