Accounting Professional Bodies in Nigeria

Accounting professional bodies exist to propagate professionalism and foster developments concerning accounting practices. We have several accounting bodies across the world.

However, we will limit our discussion to those available in Nigeria. In Nigeria, we have several accounting bodies with different mandates and responsibilities. Furthermore, not all accounting professional bodies are recognized hence we only picked those that are recognized. 

In the post, our readers will know the available accounting professionals’ bodies and more information about them. 

Also, check out All You Need to Know about Chartered Accountancy.

What do accounting professional bodies do?

The accounting professional bodies are a set of organizations legally established to cater to the monitoring and development of the accounting professions. The organization ensures that the practices and the conduct of the individuals practicing the profession are ethical, competent, and accountable. 

The importance of the accounting professional bodies 

Let us look at the importance of accounting professional bodies in Nigeria. Although each institution has different roles to play, the common functions that the accounting professional bodies play include:

Setting and maintaining high professional standards 

Accounting professional bodies such as the Institute of Chartered Accountants of Nigeria (ICAN) and the Association of National Accountants of Nigeria (ANAN) is responsible for setting and maintaining high professional standards for accountants.

This helps to ensure that accountants are qualified and competent to perform their duties effectively.

Promoting ethical behavior

Accounting professional bodies have codes of ethics that members are expected to adhere to. These codes help to promote ethical behavior and ensure that accountants act in the best interests of their clients or employers.

Providing professional development and training

Professional bodies provide ongoing professional development and training opportunities for their members. This helps to ensure that accountants stay up-to-date with the latest developments in the field and continue to develop their skills and knowledge.

Advocating for the profession 

Accounting professional bodies advocate for the interests of their members and the profession as a whole. They may engage in public policy debates, raise awareness about important issues affecting the profession, and lobby for legislative or regulatory changes that benefit accountants.

Protecting the public interest

Accounting professional bodies have a responsibility to protect the public interest by ensuring that accountants are competent, ethical, and accountable. They may investigate complaints or allegations of professional misconduct and take disciplinary action against members who violate professional standards or ethical codes.

Also, check out Computer Professional Bodies in Nigeria.

List of Recognized Accounting Bodies in Nigeria 

The list of the recognized accounting bodies in Nigeria includes: 

• ANAN (Association of National Accountants of Nigeria)
• ICAN (International Chartered Accountants of Nigeria)
• Chartered Institute of Management Accountants

ANAN

First on the list of accounting professional bodies is ANAN (Association of National Accountants of Nigeria). The body is famously known for pushing the development of accountancy through the education and training of its members. 

Historical Background of ANAN

The notion of developing an association to see to the education and training of homegrown accountants remains the brain behind the establishment.

ANAN was founded on the 1st of January, 1979, and waited for four years before fully being registered and recognized.  On the 25th of August, 1993, it gained its credentials to become a fully registered and licensed accounting professional body.

Functions of ANAN 

• Provide training and educational programs with quality resources.
• Create a platform for members to seek the advice of top professionals in accountancy.

How to become a member of ANAN 

Every graduate of accountancy has the opportunity to become a member. The process will need the interested applicants to take a three-year program to sharpen their accounting skills and knowledge. At the end of the training, they become certified with CNA(Certified National Accountant) certificate.

However, if you did not start out as an accountant and wish to become one. The organization has a separate course, a conversion course for you to undergo training and get certified. 

ICAN 

The most popular professional accounting body is ICAN. ICAN, institute of Chartered Accountants of Nigeria) was created in Nigeria by the Act of Parliament No. 15 of 1965. It is in charge of establishing the nation’s accounting and auditing standards and serves as Nigeria’s sole regulating organization for the accounting profession.

ICAN oversees the education and certification of chartered accountants in Nigeria and is a member of the International Federation of Accountants (IFAC). It is the mandate of the institute to uphold high professional standards among its members and to support the growth of the accounting industry in Nigeria.

How to become a member of ICAN 

If you want to become a member of ICAN, you need to first pass the professional exam. However, you do not become a member immediately until you gain work experience.

The minimum standard is 3 years of work experience. When you fulfill all these requirements, you will make payment of the sum of N121,000 for the induction. Then you need to complete the membership application and submit it before the closing date.

Another route is through the ATWAS but it will take 4 years to complete.

Aims of ICAN 

• Enhancing professional practice in the Faculties to ensure compliance with regulations, legislation, and industry standards, thereby enhancing financial reporting at a national level and upholding public confidence in the field.
• Expanding the technical information available to chartered accounting firms and other corporate members.
• Facilitating the resolution of technical disagreements and disputes and disseminating business and professional information. 

CIMA 

Chartered Institute of Management Accountants is an association of accountants in the management area of private and public businesses. The institution is a global brand but has an extension in Africa with Nigeria being a part of them. 

CIMA is a member of the Association of International Certified Professional Accountants and has its headquarters in London, United Kingdom.

The organization also provides a variety of certifications, notably the CIMA Professional Qualification, the most widely accepted certification for management accountants in the world.

The qualification includes a range of subjects including financial accounting, management accounting, company strategy, and risk management.

How to become a member of CIMA 

You must have at least three years of verifiable relevant practical work experience to be eligible to join CIMA and become a Chartered Global Management Accountant (CGMA).

The CIMA qualification and CIMA’s membership application process both require completion of the Practical Experience Requirements. 

To receive Associate membership, which entitles you to the designations of Associate Chartered Management Accountant (ACMA) and Chartered Global Management Accountant (CGMA), your membership application will be evaluated for acceptance.

Benefits of Being a CIMA Member 

• Exposure to relevant and updated resources in the world of management accounting locally and internationally.
• Create an avenue for members to access themselves and help them in job negotiation and application.
• Provide training and certifications for members to boost career development.

Conclusion

Nigeria has several professional accounting bodies that play a critical role in regulating the accounting profession in the country.

The Institute of Chartered Accountants of Nigeria (ICAN), and the Association of National Accountants of Nigeria (ANAN) are the major accounting bodies in Nigeria. Becoming a part of one of the organizations is beneficial to career development and encourages ethical conduct in the accounting profession.

Before you go, check out The Calculation of Gratuity in Nigeria.