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Accounting, And Audit Requirements In Nigeria

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In Nigeria all registered  companies are required to  maintain books of accounts and produce their financial statements under the International Financial Reporting Standards (IFRS).

Anyone desirous of doing business in Nigeria must consider the following provisions of the Nigeria Companies and Allied Matters Act (CAMA):


  • All companies shall keep sufficient accounting records.
  • The accounting records shall contain a record of the assets and liabilities of the company.  
  • The accounting records, kept in the registered office of the company or other places as the director may deem fit, must be open to inspection by the officers of the company. 
  • The accounting records shall be kept for a minimum period of 6 years from the date on which they were made. 
  • All companies must file audited financial statements annually with the tax authorities and the Corporate Affairs Commission (CAC). 
  • Group accounts are required of a company with at least one subsidiary. 
  • The directors of a company shall at their first meeting after incorporation of the company, determine to what date in each year that the financial statements shall be made up, and they shall give notice of the date to the CAC within 14 days of the determination. 

    Directors' report: A report by the director shall be prepared containing a fair view of the development of the business of the company and its subsidiaries during the year and of their position at the end of it, stating the amount (if any) which they recommend should be paid as dividend and the amount which they propose to carry to reserves. The report shall state the names of the persons who, at any time during the year, were directors of the company and the financial activities of the company and its subsidiaries in the course of the year and any significant change in those activities in that year. The directors shall at a date not later than 18 months after incorporation of the company and subsequently at least once every year, lay before the company in general meetings copies of the financial statements made up to a date not exceeding nine months before the date of the meeting. 
    This suggests that companies cannot have more than an 18-month account in their first accounting year. Additionally, in respect of each year, the directors shall submit with the annual return to the CAC; a copy of the balance sheet, the profit or loss account and the notes on the statements which were laid before the general meeting. 
    Auditors’ requirement The CAMA requires the shareholders to appoint auditors during the annual general meeting. Such auditor must possess a practicing certificate and be a member of the Institute of Chartered Accountants of Nigeria (ICAN) or the Association of National Accountants of Nigeria (ANAN). Nigerian auditors generally adopt International Standards on Auditing (ISA) as issued by the International Auditing and Assurance Standards Board complemented by local rules. The auditors must report to the shareholders of the company on the accounts and are required to express their opinion as to whether the accounts provide a true and fair view of the financial status of the company.

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