July 18, 2024

The Nigerian Maritime Administration and Safety Agency (NIMASA) has been fined N500 million by the Financial Reporting Council of Nigeria (FRC) for inaccuracies and inconsistencies in its audited financial accounts for the fiscal year ended December 31, 2018.

The Council also suspended the FRC registration number- FRC/2017/CIANG/00000016699 of the NIMASA Director General, Dr. Bashir Jamoh, and the certifiers of NIMASA’s 2018 Audited Financial Statement, Chudi Offodile (Unregistered), making the two officials ineligible to certify any financial statements in Nigeria.

The FRC’s notice to NIMASA, titled ‘Suspension and Restatement of NIMASA’s Audited Financial Statements,’ was published on its website in accordance with the FRC Act 2011 (as amended) and the Financial Reporting Council of Nigeria-Guidelines/Regulations for Inspection and Monitoring of Reporting Entities.

The council also directed NIMASA to publish the audited accounts’ withdrawal in two national newspapers within seven working days for breaking financial reporting rules in the production of the 2018 financial statement.

According to the FRC, the suspension prevents them from certifying any financial statements in Nigeria.

“Withdrawal and Restatement of 2018 Audited Financial Statements: The 2018 Audited Financial Statements of NIMASA are hereby withdrawn, and NIMASA is directed to restate its 2018 audited financial statements in accordance with the FRC Act.

“NIMASA is required to publish, within seven 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notice, in at least two national newspapers (full page), that their 2018 financial statements and returns have been withdrawn for noncompliance with Financial Reporting Standards.

“The FRC will immediately post this information on its website and inform other regulatory agencies that the defective financial statements and returns have been withdrawn for restatement,” the notice reads.

The FRC said this restatement will form the basis for the preparation and submission of audited financial statements for the years ended December 31, 2019, 2020, 2021, and 2022.

The council noted that 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.

“The Council hereby imposes a Type 6 penalty of N500 million for the withdrawal of the 2018 financial statement, in line with Regulation 18 of the FRC Guidelines/Regulations 2014. The Financial Reporting Council of Nigeria emphasises its commitment to upholding financial reporting standards and ensuring the accuracy and reliability of financial statements,” the notice stated.

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