As Nigeria and other African economies rebuild from the economic shock of COVID-19, finance and governance experts are calling for deeper reforms in corporate reporting and audit standards to restore investor confidence and strengthen institutional accountability.
In recent months, the Financial Reporting Council of Nigeria (FRC), the Institute of Chartered Accountants of Nigeria (ICAN), and leading private-sector stakeholders have intensified conversations around modernizing audit frameworks and aligning them with international best practices. The renewed interest comes amid global concerns over financial misstatements, governance failures, and the role of auditors in ensuring transparency within increasingly complex corporate environments.
According to Tolulope Sotola, a UK-based Nigerian finance and audit professional with experience at KPMG Nigeria and Deloitte UK, rebuilding trust in Africa’s corporate ecosystem requires a shift from compliance-driven auditing to one anchored on ethics, data integrity, and accountability.
“Audit reform is not just a technical issue — it’s about rebuilding public confidence in how organizations report performance and manage risk,” Sotola said. “For Nigerian and African companies, the opportunity lies in harmonizing local standards with global frameworks while building a culture of integrity from the inside out.”
Sotola, who has worked on governance and assurance engagements across financial and non-financial sectors, emphasized that investors are increasingly scrutinizing how African firms disclose environmental, social, and governance (ESG) risks — a trend accelerated by global capital markets demanding greater transparency.
Her views echo those of Dr. Ifeanyi Odunuga, a governance consultant and former member of the ICAN Ethics Committee, who noted that the pandemic had exposed gaps in corporate accountability structures across the continent.
“What we’ve seen since early 2020 is that companies without robust governance systems struggled to respond effectively to financial shocks,” Odunuga said. “Audit reform is central to building resilience, and Nigeria has a real opportunity to lead Africa in establishing trust-based regulatory systems.”
Industry observers have also pointed to lessons from the United Kingdom’s ongoing review of its audit profession, particularly the work of the Financial Reporting Council (FRC UK) in tightening auditor independence and enhancing public oversight. Nigerian regulators, they argue, can draw from these global practices to strengthen enforcement mechanisms locally.
For African economies, the debate is more than theoretical. Weak governance and limited transparency continue to deter long-term investment in key sectors such as energy, infrastructure, and financial services. Analysts believe that credible, transparent audit systems can help unlock billions in foreign direct investment by assuring global investors that financial disclosures are trustworthy.
Sotola added that while Nigeria has made strides with the Nigerian Code of Corporate Governance (NCCG) and sustainability reporting guidelines, implementation remains uneven.
“We’ve seen strong policy direction, but consistent enforcement and capacity building will determine impact,” she said. “Audit quality depends not only on regulation but also on the integrity of professionals applying those standards daily.”
She further highlighted the importance of technology and data analytics in shaping the future of auditing, especially as Nigerian firms navigate a digital-first economy.
“Digital tools can transform how auditors identify risk and test transactions, but ethics and human judgment will always be central,” Sotola noted. “Technology enhances credibility when it’s guided by strong governance values.”
Experts agree that for Nigeria to achieve sustainable economic recovery post-COVID-19, the private sector must complement government efforts by embedding transparency, risk management, and corporate accountability at every level. As African companies increasingly compete for global capital, the continent’s ability to institutionalize trust through reform-driven auditing and governance will determine its next chapter of growth.
