In its bid to further enhance the effectiveness of regulation and investor protection in the Nigerian capital market, NGX Regulation Limited (NGX RegCo) signed a Memorandum of Understanding (MoU) with the Institute of Chartered Accountants of Nigeria (ICAN) on Monday, 10 July 2023.
This milestone signifies closer collaboration between NGX RegCo and ICAN and reinforces their commitment to the development of the capital market and the financial services industry in Nigeria. The collaboration will harness capacity building and information sharing to foster a culture of competence and professionalism for market development. In addition, it entails the development of initiatives to further improve the quality of corporate reporting in the capital market.
Speaking during the signing ceremony held at the Nigerian Exchange Group House in Lagos, the Chief Executive Officer, NGX RegCo, Ms Tinuade Awe emphasized that regulation had to be effective to create fairness in the market and collaboration between organizations like ICAN is critical to enhancing professionalism, ethics, integrity and transparency.
She also noted the importance of technology in easing reporting and regulation, adding that NGX RegCo was collaborating with the Institute to enable it further deliver on its mandate of investor protection, creating fair and transparent markets and promoting compliance to global best practices.
“We have a long history of over 60 years in the context of the Nigerian Stock Exchange but for NGX RegCo post-demutualisation, this is truly a historic moment. We believe that this cause that we are deliberately undertaking will enable both parties deliver efficiently on our shared objectives. We look forward to collaborating with ICAN and are sure that the Institute will see this collaboration as mutually beneficial,” Awe said.
On his part, the ICAN President, Dr Innocent Okwuosa, emphasized that the partnership between both parties will foster a robust and transparent capital market ecosystem that will attract investment, encourage growth, sustainability reporting and safeguard the interest of all stakeholders.
Okwuosa explained, “Accountants are at the forefront of financial reporting and so the information investors will work with are mainly driven by them. This underscores why both NGX RegCo and ICAN should cooperate and we are happy that today marks a new beginning.
“The strategic alliance between NGX RegCo and ICAN is expected to have a profound and positive impact on the Nigerian capital market, promote investor confidence, strengthen regulatory oversight, and elevate professional standards within the industry.”
The ICAN President reiterated that the Institute will continue to position itself in advising the government on supporting increased capital flows to the market, adding that it is ready to cooperate with NGX RegCo on awareness amongst accountants and other areas that would boost market development.
