As the financial reforms in Nigeria progress from one stage on to another, each brand-new scenario presents its own obstacles. The financial institutions have actually forwarded their draft financials to the CBN. The CBN needs to verify the stability and also efficiency of the monetary records before accepting them. One of the reasons advanced for the situations in some Nigerian financial institutions had to do with unreliable economic coverage. It was adduced that some loss-making financial institutions not declared earnings but paid dividends using depositor funds. It is important that banks send in their reports utilizing a common economic coverage system structure. It may be needed for the CBN to more enhance the high quality of financial institutions’ economic reporting past what already exists.
It is crucial that the ‘target evaluation’ of the banks being carried out by the CBN in this wake does NOT merely concentrate on identifying data stability. There is outright requirement to also focus on each financial institution’s financial system honesty. While recalling the popular phrase of ‘Garbage In, Garbage Out’, data integrity generally focuses on data precision and completeness while economic system stability concentrates beyond data to all the other key elements of the monetary details structure. Economic system stability is most definitely more alternative and dependable. To this end, a set of criteria for determining system integrity could be called for dich vu bao cao tai chinh quan 1. The economic regulator has to prevent a situation of garbage in trash out of economic data, as that will fundamentally make imprecise any kind of information stemmed from using such information.
In addition to the above, possibly it is also time for the intro of a common economic audit system framework for Nigerian financial institutions. The structure must suggest the standard foundations or aspects on which the entire financial accounting infrastructure of all banks must be based. This no doubt will think about the nature of financial solutions in Nigeria. Recommendations for the extent of the graphs of accounts, account classifications, inner control systems, monetary bookkeeping software program, operating procedures/manuals and the sort ought to be paramount in this purpose. Most importantly, it is very important that the entire system is streamlined.