Peter Asemah
Audit Partner and Kreston Pedabo
Strengthening Nigerian accounting with the ADT
July 3, 2025
Nigerian accounting and consulting services are in high demand, with the industry undergoing an evolution toward alignment with global standards. Spearheading this transformation is the Financial Reporting Council of Nigeria (FRC), in partnership with UNCTAD (United Nations Centre for Trade And Development), through the Accounting Development Tool (ADT) project.
This initiative aims to fortify Nigeria’s accounting framework to meet international norms, in an effort to bolster investor confidence and trust in the country’s financial landscape. In addition to promoting financial transparency and elevating the credibility of Nigerian auditors, it also empowers regulatory bodies such as the Financial Reporting Council (FRC). According to Dr. Rabiu Olowo, Chief Executive Officer of the FRC, the deployment of the Accounting Development Tool (ADT) in Nigeria will not only support financial transparency but also reinforce the institutional capacity of the Council.
Building credibility and enforcing financial transparency
Dr. Olowo, has acknowledged that the prevailing economic hardship in the country may increase the likelihood of companies manipulating the presentation of their financial reports. However, he affirmed that as regulator, the FRC remains vigilant and committed to discouraging such trends and upholding the integrity of financial reporting in Nigeria. Peter Asemah, Audit Partner at Kreston Pedabo Nigeria, has also said that while the ADT is definitely a step in the right direction, the level of impact it will have depends on how well it is implemented.
The role of audit firms
‘Having a framework is great, but credibility and transparency do not just come from good policies—they come from strong enforcement and a mindset shift across industries,’ said Peter. ‘One thing I would like to see is a more practical approach to implementation. When problems are identified, there needs to be a clear roadmap with deadlines and measurable outcomes to drive improvement. Greater collaboration between regulators and private sector players—such as audit firms and corporate organisations—would also help make the process more effective.’
Keys to ADT success in Nigerian accounting
He emphasised that education will be crucial to making the Accounting Development Tool easy to implement. ‘If the findings and recommendations simply sit in reports without clear guidance on next steps, adoption will be slow,’ he warned. ‘That is why awareness campaigns, workshops, and even digital tools will be essential. As audit professionals, we also have a role to play in breaking down the requirements for our clients and helping them transition smoothly.’
Boosting investor confidence in Nigerian accounting
If everything proceeds as planned, Peter believes that Nigeria could experience a significant boost in investor confidence and overall business transparency. ‘When financial reporting is stronger and more reliable, both local and foreign investors will feel more comfortable injecting capital into Nigerian businesses,’ he explained. ‘We will also see better corporate governance, fewer cases of financial mismanagement, and a stronger business environment. In the long term, this could lead to increased foreign direct investment, improved access to global markets, and even a higher credit rating for the country.’
Driving economic diversification
Nigeria attracts numerous investors in the sector of hydrocarbon, energy, and construction. According to UNCTAD’s World Investment Report 2023, the main sectors attracting FDI inflows into Nigeria include oil and gas, telecommunications, manufacturing, real estate, and agriculture.
Nigeria intends to diversify its economy away from oil by building a competitive manufacturing sector, which should facilitate integration into global value chains and boost productivity. The merging of trade, industry and investment under the ambit of the Federal Ministry of Industry, Trade and Investment reflects Nigeria’s intention to coordinate between these three key areas.
Opportunities for Nigerian accounting firms
This is creating a business environment full of opportunities for Kreston Pedabo Nigeria and its partners. ‘Businesses will need guidance on how to align with new accounting and reporting standards, and that is where we come in,’ said Peter. ‘We can help clients understand what is changing, how it affects them, and what steps they need to take to ensure compliance, leverage incentives and optimise their performance, particularly with further support from our financial advisory, risk management, and management consulting services.’
Peter is also looking to position the company with regulators to provide training and support for accountants and auditors across Nigeria. ‘As financial reporting standards improve, more multinational companies will be drawn to Nigeria, and that opens up new business opportunities for us,’ he said. ‘It is an exciting time, and we are in a strong position to be at the forefront of these changes.’
