The Financial Reporting Council of Nigeria (FRC) has taken a stern stance against the Nigerian Maritime Administration and Safety Agency (NIMASA), suspending its 2018 audited financial statement and imposing a hefty penalty of N500 million for non-compliance with financial reporting standards.
In a public notice issued on Thursday, December 7, 2023, the FRC management directed NIMASA to restate its audited financial statement for the year ending December 31, 2022, and suspended the Director-General of NIMASA, Bashir Jamoh, alongside Chudi Ofodile. The FRC acted under the FRC Act 2011 (as amended) and its guidelines and regulations for inspecting and monitoring reporting entities.
“The FRC registration numbers of certifiers of NIMASA’S Audited Financial Statement, Dr. Bashir Jamoh (FRC/2017/CIANG/00000016699) and Chudi Offodile (Unregistered) are at this moment suspended,” the statement reads. “This suspension renders them incapable of certifying any financial statements in Nigeria.”
The FRC has withdrawn the 2018 Audited Financial Statements of NIMASA and directed the agency to restate its 2018 audited financial statements. NIMASA is required to publish, within seven working days from the notice date, in at least two national newspapers, acknowledging the withdrawal due to non-compliance with Financial Reporting Standards.
The FRC emphasized its commitment to maintaining financial reporting standards and ensuring the accuracy and reliability of financial statements. The regulatory body also ordered NIMASA to initiate the process of restating the 2018 audited financial statement under the FRC Act.
“NIMASA is required to file the restated financial statements for 2018, together with the management letters issued by their external auditors, with the Council within 60 days,” the FRC said.
This significant penalty of N500 million serves as a reminder to all reporting entities of their responsibility to adhere to established guidelines and rules. The FRC has stated that it will immediately post the information on its website and inform other regulatory agencies that the defective financial statements have been withdrawn.
Investors and stakeholders will be closely monitoring NIMASA’s response and actions in the wake of these regulatory measures.