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Nigeria

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Financial Reporting Framework in Nigeria

Adoption of International Financial Reporting Standards from 2012

On 28 July 2010, the Nigerian Federal Executive Council approved 1 January 2012 as the effective date for convergence of accounting standards in Nigeria with International Financial Reporting Standards (IFRS). The Council directed the Nigerian Accounting Standards Board (NASB), under the supervision of the Nigerian Federal Ministry of Commerce and Industry, to take further necessary actions to give effect to Councils' approval.

On 3 September 2010, the Nigerian Accounting Standards Board (NASB) announced a staged implementation of IFRS, as follows:

  • Publicly listed entities and significant public interest entities are expected to implement IFRS by 1 January 2012
  • Other public interest entities are expected to implement IFRS by 1 January 2013
  • Small and medium-sized entities are expected to implement the IFRS for SMEs by 1 January 2014.

Micro-sized entities may use either the IFRS for SMEs or the Small and Medium-sized Entities Guidelines on Accounting (SMEGA) Level 3 issued by the United Nations Conference on Trade and Development (UNCTAD).

In June 2011, legislative changes were enacted under which the Financial Reporting Council (FRC) of Nigeria replaced the NASB as the entity responsible for setting financial reporting standards in Nigeria. The FRC has published regulatory guidance (link to FRC website) which requires Nigerian entities to make certain elections when applying IFRS 1 First-time Adoption of International Financial Reporting Standards.  This guidance also requires all entities applying IFRS to make an explicit and unreserved statement of compliance with IFRS.

 

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