Accountants operating in the Nigerian capital market under the Association of Reporting Accountants on the Capital Market have expressed a desire to play a more significant role as the market develops.
According to the accountants, since the meltdown in the capital market in 2008, the level of the activities, particularly with respect to medium to long-term fund raising, has been low, thereby limiting their role in the market.
The Chairman, ARACAM, Mr. Ayodele Othihiwa, said this during the association’s Annual General Meeting in Lagos.
Othihiwa, who explained that the role of reporting accountants was usually a function of the listing rules and prospectus rules of the markets, stressed that reporting accountants are responsible for accountant’s report, long form report, working capital report, profit forecast, among other reports.
However, he said, “If we try and situate the above noted activities in the Nigerian capital market, we will observe that other than the accountant’s report and profit forecast, most of the other reports noted are usually not issued in the Nigerian market.”
According to him, this is as a result of the lack of depth of the market.
Othihiwa was, however, optimistic that the capital market would soon become more dynamic and expand in depth, thereby creating more opportunities for reporting accountants and other stakeholders.
“We are hopeful that as the regulator authorities work on the development of a strong capital market with dept and capacity to provide alternative source of raising funds, our activities and involvement will begin to expand,” he said.
He stressed that there was the need for reporting accountants to invest in capacity development by improving their skills and knowledge as the only way they could take full advantage of opportunities in the market.
He added, “The capital market in Nigeria will ultimately be made to work for both big corporate and small and medium-sized enterprises for us to truly develop as a nation. And at that time, the SMEs will need the small and middle-tier firms to support their growth plan and agenda.
“If small and medium sized firms are not adequately skilled, they cannot provide this support.”
The chairman, who explained that in 2012, the association participated in the activities of the Securities and Exchange Commission aimed at the development of the market, said the association would continue to participate in such activities in order to fast-track the growth of the capital market.