The Institute of Chartered Accountants of Nigeria (ICAN) has appealed to the World Bank to approve loans for the federal and state governments in Nigeria based on their ranking on the ICAN Accountability Index.
The index was developed to promote high quality public finance management’s system in Nigeria.
The President of ICAN, Dr. Innocent Okwuosa, made this appeal in Abuja, when he paid a courtesy visit to the Country Director of the World Bank, Mr. Chubham Chaudhuri.
Okwuosa, in a press statement titled: ‘ICAN Urges World Bank to Grant Loans to federal and state Governments Based on Performance in ICAN Accountability Index Ranking,” that was issued during the weekend by Assistant Director, Corporate Communications ICAN, Ms. Olubunmi Owolabi, described the ICAN Accountability Index as a public financial management tool initiated by ICAN to ensure that the three tiers of government in Nigeria embraced best practices in public finance management.
The statement added: “ICAN has called on the World Bank to approve loans for the federal and state governments in Nigeria based on their ranking on the ICAN Accountability Index.”
Okwuosa acknowledged that, “corruption, unaccountability and poor public financial management are systemic within the Nigerian economic system,” adding that “the United Nations’ Sustainable Development Goals cannot be achieved under this socio-economic environment.”
He, therefore, solicited the World Bank’s collaboration for the accountability index to ensure compliance with best practice in public finance management in Nigeria.
“This collaboration will ensure that the assessments remain independent of government interference, retain its objectivity and could replace States Fiscal Transparency, Accountability and Sustainability (SFTAS) Framework through World Bank endorsement” he concluded.
Okwuosa explained further that ICAN, in its public interest mandate, is positioned to play a vital role in the improvement of public sector financial management and accountability in Nigeria.
He added that the ICAN’s accountability index has been acknowledged as having wider scope and better suited for Nigeria than similar initiatives like the Public Expenditure and Financial Accountability (PEFA) and the States Fiscal Transparency, Accountability and Sustainability (SFTAS) Frameworks due to the scope captured in its five pillars, 25 indicators and 70 dimensions, which are scaled across the federal, states and local governments.
He said: “For the tiers of government to improve their performances in the ICAN-AI, it is important that financial data are made publicly available to facilitate easy computation of the index by the institute.”
In addition, he enjoined stakeholders at the federal, states and local government to cooperate with ICAN-AI Assessors that are sent to visit Ministries, Departments and Agencies to collate relevant data.
The ICAN, however, commended the entities for the positive progress in the amount of financial information provided.
“On average, 50 per cent of the information required was provided across the various levels of government in the 2020 assessment, compared to only 35 per cent and 28 per cent average availability rates in 2019 and 2018 respectively.
“In 2021, 53 per cent of the information required was provided across the various levels of government. This demonstrates some increased level of awareness and improved compliance with the plethora of laws and regulations in Nigeria mandating the availability of such information to stakeholders,” the statement said.
It added that the ICAN’s accountability index has been endorsed by local and international organisations, such as the Department for International Development (DFID), the World Bank, International Federation of Accountants (IFAC), the Chartered Accountants Worldwide (CAW), the Public Expenditure and Financial Accountability (PEFA), the Pan African Federation of Accountants, BudgIT among others.
Dike Onwuamaeze
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