Not-for-profit organizations like churches, mosques and non-governmental organizations (NGOs) will now have to disclose their financial reports as the Nigerian Government is making a move to enact the corporate governance code.
This development was announced recently by the Financial Reporting Council (FRC) under the leadership of its Executive Secretary, Dr Rabiu Olowo.
Olowo disclosed that the codes for both the public and not-for-profit sectors were at an advanced stage, to unveil them within the first quarter of 2024.
According to him, the code will compel government institutions including agencies that are also regulators to comply with the same financial reporting standard as private companies.
He said the Council has also seen the need for proper guidance to Not-For-Profit Organizations as a lot of them are at higher risks compared with for-profit organizations.
He said: “As controversial as it is, it is something that must be done. If you do a risk analysis of entities in any country, the not-for-profit sector is as risky as the profit entities. So, it is very important that we issue codes on how these institutions are covered. It is our responsibility to do that and we will not shy away from that.”
