Cautions against rising debt profile
Institute of Chartered Accountants of Nigeria (ICAN), yesterday, advised state governments to strengthen accountability index in public financing to boost citizens’ confidence in governance and encourage lenders.
Making the appeal during a chat with journalists in Lagos, new president of the institute, Dr. Innocent Okwuosa, encouraged federal and state governments to adopt ICAN Accountability Index, which seeks to ensure institutionalisation of accountability and transparency in governance.
Okwuosa noted that corruption, unaccountability and poor public financial management are systemic within the Nigerian economic system. He noted, however, that ICAN’s Accountability Index is a public financial management tool designed to ensure the three tiers of government embrace best practices in public finance management.
He said: “When institutional lenders, like World Bank, approve loans for federal and state governments in Nigeria, based on their ranking on the ICAN Accountability Index, they will have to improve on transparency in their public finance.
“The index would show that government is transparent in management of public funds, help to win the trust of Nigerians in their government, and leading financial institutions would be encouraged to lend to states.”
Commenting on Nigeria’s rising debt profile, the ICAN boss said instead of Federal Government embarking on international borrowing, such funds should be sourced locally.
He advised government to harness untapped resources and invest in human capital development that would, in turn, bring enormous growth and prosperity to the people.
Okwuosa said: “I don’t think we need to be economists to see dangers in piling up debts for citizens. I believe some of the loans taken by the Federal Government are not necessary. Government could have sourced funds internally by opening up other aspects of the economy.
“We have vast untapped resources; why would the government not exploit them? We can engage our scientists, engineers and others to go to work.” Speaking on recent economic policies of government, such as liberalisation of foreign exchange, fuel subsidy removal and others, Okwuosa, who commended the initiatives, said the initiatives must be backed with income.
He traced some of the challenges confronting the accounting profession to invasion by quacks. He, however, assured practitioners that more reforms would be introduced to improve competence, standardise membership examination and boost relevance of the profession to engender economic development.
