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The Financial Reporting Council of Nigeria (FRC) has unveiled draft valuation regulations aimed at bolstering transparency, accountability, and consistency in financial reporting practices across the country. Speaking during a recent stakeholders’ engagement session in Lagos, Dr. Rabiu Olowo, the Executive Secretary and CEO of the FRC, emphasized that the proposed regulations represent a significant step toward enhancing Nigeria’s financial landscape.
The draft Valuation Regulations for Financial Reporting are designed to provide a standardized framework for valuers offering services for financial reporting in Nigeria. The initiative is part of the FRC’s commitment to ensuring fairness, accuracy, and transparency in valuations. Stakeholders have been invited to submit their feedback on the draft regulations, with the Council aiming to refine the framework based on industry input.
According to Dr. Olowo, the regulations are intended to address key challenges in valuation practices:
“The proposed regulations provide a structured approach to valuation that will help standardize practices, mitigate risks associated with subjective judgment, and enhance the comparability of financial statements across entities and jurisdictions.”
He explained that the guidelines emphasize the disclosure of methods and assumptions used during valuations, ensuring stakeholders understand the rationale behind the derived values. This transparency, he noted, is essential for building trust and clarity in financial reporting.
The regulations also outline roles and responsibilities for valuers, auditors, and other stakeholders involved in the valuation process. By fostering greater accountability, the framework aims to cultivate a culture of accuracy and integrity.
Dr. Olowo added:
“Aligned with international best practices, these regulations are critical for ensuring Nigeria’s financial markets remain competitive, credible, and attractive to both domestic and international investors. Clear and objective valuation standards help minimize risks of errors, conflicts of interest, and disputes arising from inconsistent valuation practices.”
The stakeholder session provided an opportunity for industry professionals to contribute insights and recommendations, which the FRC will incorporate to finalize the regulations.
Concluding, Dr. Olowo reaffirmed the Council’s commitment to upholding the principles of fairness and trust in financial reporting:
“We are dedicated to ensuring these regulations not only meet market needs but also support the broader goals of fostering a robust, transparent, and equitable financial system in Nigeria.”
The proposed valuation regulations are expected to align Nigeria’s financial reporting practices with global standards, enhancing confidence in the nation’s financial system.
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