FRC imposes a fine of N500 million on NIMASA for defective 2018 financial statements.

The Financial Reporting Council of Nigeria has taken action against the Nigerian Maritime Administration and Safety Agency (NIMASA) by suspending its audited financial statements for the year ending December 31, 2018, and imposing a N500 million fine. The FRC, emphasizing its commitment to stricter enforcement of standards, cited compliance with the FRC Act 2011 (as amended) and the Financial Reporting Council of Nigeria Guidelines/Regulations for Inspection and Monitoring of Reporting Entities as the basis for this decision.

Additionally, the council suspended the FRC registration numbers of the certifiers of NIMASA’s 2018 audited financial statement, rendering them incapable of certifying any financial statements in Nigeria. The FRC directed NIMASA to restate its 2018 audited financial statements and publish, within seven working days, in at least two national newspapers, a notice of the withdrawal of its 2018 financial statements for non-compliance with Financial Reporting Standards.

The notice specified that NIMASA must begin the process of restating the 2018 audited financial statement in accordance with the FRC Act. This restatement will serve as the foundation for preparing and submitting audited financial statements for the years ending December 31, 2019, 2020, 2021, and 2022. NIMASA is required to file the restated financial statements for 2018, along with the management letters issued by their external auditors, with the Council within 60 days.

The FRC emphasized that this action against NIMASA serves as a reminder to all reporting entities of their responsibility to comply with prescribed standards and regulations.

By Ijezie Victor