The Nigerian Maritime Administration and Safety Agency (NIMASA) was fined N500 million by the Financial Reporting Council of Nigeria (FRC) for errors and inconsistencies in its audited financial accounts for the year that concluded on December 31, 2018.
The NIMASA Director General, Dr. Bashir Jamoh, and the certifiers of the organization’s 2018 Audited Financial Statement, Chudi Offodile (Unregistered), had their FRC registration number, FRC/2017/CIANG/00000016699, suspended by the Council. As a result, the two officials were unable to certify any financial statements in Nigeria.
The Financial Reporting Council of Nigeria-Guidelines/Regulations for Inspection and Monitoring of Reporting Entities and the FRC Act 2011 (as amended) are the legal bases for the FRC’s notice to NIMASA, which was posted on its website under the heading “Suspension and Restatement of NIMASA’s Audited Financial Statements.”
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In addition, the council mandated that NIMASA withdraw the audited accounts from publication in two national newspapers within a week after discovering that the organisation had broken financial reporting guidelines when preparing the 2018 financial statement.
FRC claims that because of this ban, they are unable to certify any financial statements in Nigeria.
“Withdrawal and Restatement of 2018 Audited Financial accounts: NIMASA hereby withdraws its 2018 audited financial accounts and orders that its 2018 audited financial statements be restated in compliance with the FRC Act.
“NIMASA is obligated to announce that their 2018 financial statements and returns have been withdrawn due to noncompliance with Financial Reporting Standards in at least two full-page national newspapers, within seven working days of the date of this notice.
The letter states, “The FRC will notify other regulatory agencies that the financial statements and returns that are defective have been withdrawn for restatement and will post this information on its website immediately.”
The financial statements for the years ended December 31, 2019, 2020, 2021, and 2022 that are audited will be prepared and submitted using this restatement as their foundation, according to the FRC.
The council was informed that NIMASA must provide the restated financial accounts for 2018 to the council within sixty days, along with the management letters that their external auditors have issued.
According to Regulation 18 of the FRC Guidelines/Regulations 2014, the Council hereby levies a Type 6 penalty of N500 million for the withdrawal of the 2018 financial statement. In the notification, the Financial Reporting Council of Nigeria reaffirmed its dedication to maintaining financial reporting standards and guaranteeing the truth and dependability of financial accounts.
