Not-for-profit organisations including churches, mosques and other non-governmental organisations (NGOs) will soon be required to disclose their financial reports as the Federal government seeks to enact the corporate governance code.
The Executive Secretary of the Financial Reporting Council (FRC), Dr Rabiu Olowo, announced the new regime on Wednesday.
Olowo stressed that the codes for both the public and not-for-profit sectors are at an advanced stage, with the target to unveil them within the first quarter of 2024.
According to him, the Code will mandate government institutions including agencies that are also regulators to comply with the same financial reporting standard as private companies.
The FRC boss said the Council has also seen the need for proper guidance to Not-For-Profit Organisations because many of them are at higher risks compared with for-profit organizations. He said the code, which is at an advanced stage is also being targeted to be unveiled within the first quarter of 2024.
Olowo explained: “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.”