FRC Imposes N500m Penalty On NIMASA For Noncompliance With Financial Reporting Standards

The Financial Reporting Council of Nigeria (FRC) has suspended the 2018 audited financial statement of the Nigerian Maritime Administration and Safety Agency (NIMASA) for non-compliance with financial reporting standards. In a public notice on Thursday, the FRC management directed NIMASA to begin the process of restating its audited financial statement for the year ended December 31, 2022. The council also imposed a type six penalty of N500 million for the withdrawal of the financial statement. The action, the council said, was in accordance with the FRC Act 2011 (as amended) and the council’s guidelines and regulations for the inspection and monitoring of 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 hereby suspended,” the statement reads. “This suspension renders them incapable of certifying any financial statements in Nigeria. The 2018 Audited Financial Statements of NIMASA are hereby withdrawn, and NIMASA is directed to restate its 2018 audited financial statements. "NIMASA is required to publish, within seven (7) working days from the date of this notice, in at least two national newspapers (full page), that their 2018 financial statements and returns have been withdrawn for non-compliance with Financial Reporting Standards.”The FRC said it would immediately post the information on its website and inform other regulatory agencies that the defective financial statements have been withdrawn. Speaking on the restatement process and submission of financial statements, the council directed NIMASA “to begin the process of restating the 2018 audited financial statement in accordance with the FRC Act”. According to FRC, the preparation and submission of the agency’s audited financial statements for the years ended December 31, 2019, 2020, 2021, and 2022 will be based on the restatement. “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,” FRC said. “Penalty Imposed: The Council hereby imposes a Type 6 penalty of N500,000,000 (Five Hundred Million Naira) for the withdrawal of the 2018 financial statement, in line with Regulation 18 of the FRC Guidelines/Regulations 2014.” The FRC said it is committed to maintaining financial reporting standards and ensuring the accuracy and reliability of financial statements. The action against NIMASA, the council said, serves as a reminder to all reporting entities of their responsibility to adhere to established guidelines and rules.