Legislature
ICAN bill suffers setback at Senate as stakeholders object to some sections
***Warn against use of the ammendment to usurp mandates of other professions
Stakeholders in the financial sector on Thursday raised objections to some sections of a bill for an Act to amend the Institute of Chartered Accountants of Nigeria (ICAN), Act No. 15 of 1965 and for other matters connected thereto.
At a public hearing organized by the Senate Committee on establishment and Public Services for the purpose of the bill prominent stake holders like Chartered Insttutute of Taxation (CITN), the Association of Nigeria Taxation Students(ANTAS), the Chartered Institute of Treasury Managementof (CITM) and the Nigeria Deposit insurance Corporation (NDIC) objected to some sections of the Act.
According to them, ICAN was using the ammendment to take over their professions.
The 16th President of the CITN Barrister Samuel Agbefuyi said, the opinion is the same among all the stakeholders that came except ICAN.
“Everybody should maintain its lane, if you are an accountant, I am one that knows what it means to be a tax practitioner. If you talk about tax practice I am one, if you talk of a lawyer I am one, if you talk of a stock broker I am one. So I know what it is to be all these. You can not use one legislation to override other professional bodies in the society, that is our message.”
He said there is nothing wrong with the amendment but you can not use this amendment to annex other professional bodies
“They have right to do their internal control and internal cooperate governance but you can not use that annex the profession that have been certified by the National Assembly.”
The National President of ANTAS Babtunde Opeyemi in his presentation expressed strong concern regarding sections 21 and 28 of the ICAN Act Amendment Bill 2024 (SB265).
“Section 21 of the Bill introduces a new provision to the Principal Act, allowing Chartered Accountants to practice as Tax Practitioners. Section 28 expands the definition of “Accountancy practice” to include tax practice.
According to him their objections he said is the Dual Regulation granting ICAN authority over both accounting and taxation regulation which he said risks overlap and confusion.
“Currently, the Chartered Institute of Taxation of Nigeria (CITN) oversees tax practitioners, ensuring competence and ethical standards. Introducing ICAN as a second regulatory body for taxation could create inefficiencies and uncertainties both for tax professionals, tax payers and students who in no distance time doubles as both the former and the latter.
Explaining further he indicated that Taxation demands specialized knowledge beyond general accounting principles, as it requires a holistic training of the practitioner on both the legal and ethical demands of the job and CITN has over the years mastered the game.
“ANTAS accommodates students from diverse backgrounds including Law, Marketing, Finance, Economics among others, highlighting the interdisciplinary nature of tax practice.
“Allowing ICAN to regulate taxation may undermine the specialization necessary for effective tax practice.
On the Legal Implications he said the proposed amendment may lead to legal disputes.
“Past conflicts between ICAN and CITN, such as the ICAN v CITN case (Appeal No. SC. 492/2013), demonstrate the potential for legal entanglements. Expanding ICAN’s regulatory powers into taxation could exacerbate such conflicts.
“To Avoid Conflict of Interest and ensure Professional Independence it is imperative that ICAN does not regulate both accounting and taxation.
“A single body regulating both areas could compromise the objectivity and impartiality required in these fields. Ensuring that CITN remains the sole regulatory body for taxation helps maintain clear boundaries and prevents any potential conflicts of interest, thereby upholding the integrity and independence of tax practitioners.
Continuing he said, taxation is not merely an extension of accountancy; it encompasses elements of law, economics, finance, and public policy.
“CITN’s training and certification processes are specifically designed to address this complexity and breadth. Allowing a body like ICAN, which primarily focuses on accounting, to oversee taxation could dilute the specialized expertise that CITN provides, ultimately compromising the quality and effectiveness of tax practice in Nigeria.
He urged the National Assembly to reconsider sections 21 and 28 of the ICAN Act Amendment Bill and exclude all Tax related phrases therein.
Allowing ICAN to regulate taxation risks diluting specialization, fostering legal disputes, and confusing practitioners and students.
“We recommend maintaining the current regulatory framework, with CITN independently overseeing tax practice. ANTAS encourages dialogue and collaboration to ensure effective and efficient regulation within the Nigerian taxation landscape.
The Registrar and chief executive of CITN Adedoyin Olumide raised concern about the proposed amendments to the ICAN Act 1965 about its overreach and conflicts with the domains of other professional bodies.
“While ICAN’s efforts to modernize are commendable, the bill’s extensive scope could disrupt the professional ecosystem and lead to regulatory conflicts.
Register/Chief Executive CITM
Adedoyin Olumide said the Chartered Institute of Treasury Management in her self-appointed role as a custodian of integrity, due process and transparency would keep on being the conscience of objectivity and promoting harmonious relationship within the confines of the financial management practitioners’ community.
“By enjoining this Distinguished assemblage to expunge from this amendment Bill all the listed areas of specialization already covered and passed into an Act of the National Assembly by this August Body the amendment should focus on enhancing ICAN’s core competencies in accounting, auditing, and financial reporting.
“Collaborate with Other Bodies: ICAN should work with other professional bodies to delineate clear boundaries and avoid overlapping jurisdictions.
“Ensure that any amendments align with existing laws and judicial rulings to maintain regulatory clarity and professional integrity.
In conclusion, he said, while the bill aims to modernize ICAN’s framework, careful consideration and revision are needed to prevent conflicts and ensure that each professional domain maintains its integrity and expertise.
The sponsor of the Bill senator Adeola Solomon Olamilekan who said he is proud member of ICAN asked for total support of the amendment as the act had not been be since 1965, since the establishment of this institution.
“As the last speaker said most of other professional bodies that came after the establishment of this institute are all indirectly or indirectly members of this great institute.
“And as such, the amendment we are searching for is to make ICAN to be more formidable, to be more competitive, and also to be in line with current global practices andcome to professionalism.
“We aware of the fact that a lot of things are ongoing, we cannot be left behind. We need to do all that we need to do to let us take our rightful place among the commity of nations and the profession in the world.
“As a sponsor of this meeting. As I’ve said, the act came into being on 1st September 1965, some 59 years ago.
“The Act empowered the Institute to set standard and regulate the practice of accounting professionally in Nigeria.
“In line with the dynamics of the environment, development in the economy, and changing needs of chartered accountants over the years, it has become imperative to amend certain provisions of the Act, as well as to start new provisions to bring the Act up to the current realities.”
He said a total number of 26 amendments have been sought ICAN.
The Chairman of the Committee, Senator Cyril Fasuyi, told the stakeholders that they have no need to doubt the integrity of the committee on the public hearing
He said the sponsor was not a member of the committee of 25 members adding that there are only four Accountants in their midst, hence he promised that justice will be done.
The Social Democratic Party (SDP) presidential candidate in the 2023 general election, Prince Adewole Adebayo, has addressed the controversy surrounding the National Assembly’s removal of the Code of Conduct Tribunal (CCT) chairman.
Speaking on the matter, Adebayo argued that the legislature acted within its authority and emphasized the importance of integrity in public institutions saying that they have the power to remove the president and Commander-in-Chief of the Atmed Forces
The Nigerian Senate last Wednesday, invoked Section 157(1) of the 1999 Constitution (as amended) to remove the Chairman of the Code of Conduct Tribunal (CCT), Danladi Umar, from office.
The decision followed the adoption of a motion sponsored by Senate Leader, Senator Opeyemi Bamidele (APC-Ekiti), during plenary.
The motion titled “Invocation of Provision of Section 157(1) of the Constitution for Removal of the Chairman of the CCT” was unanimously supported by the Senate.
Senator Bamidele, while presenting the motion, emphasized the sacred role of the CCT in maintaining high moral standards in government business and ensuring public officials adhere to principles of accountability and integrity.
He argued that the conduct of Danladi Umar fell short of these expectations.
Key allegations against the embattled Chairman according to the Senate leader included Corruption and Misconduct with Multiple petitions alleging corruption and misappropriation of funds.
There were Reports of Mr. Umar being absent from office for over a month without official permission.
He was also accused of refusal to Cooperate with Senate Investigations as he only appeared once before the Senate Committee on Ethics, Code of Conduct, and Public Petitions and avoided subsequent invitations.
He was also accused of engaging a physical altercation with a security guard in the Federal Capital Territory, an incident described as unbecoming of a public servant coupled with ongoing investigations by the EFCC, ICPC, and DSS which the senate refferred to a gross misconduct and negligence.
The Senate replaced Umar with President Bola Ahmed Tinubu’s nominee Mr. Abdullahi Usman Bello whose appointment was confirmed on July 4, 2024.
This decision has sparked criticism, with some legal experts arguing that the legislative body relied on a section of the Constitution—Section 157(2)—that applies to the Code of Conduct Bureau (CCB) and not the tribunal.
Critics claimed the removal process was flawed and that the legislature overstepped its bounds.
However, Adebayo who is also constitutional lawyer of repute dismissed the assertions, asserting that the National Assembly has the constitutional authority to discipline public officers, including the CCT chairman.
Adebayo explained that under the principle of separation of powers, the executive, legislative, and judicial branches serve as checks on each other.
“The National Assembly has oversight powers over public institutions, including the judiciary. The CCT chairman, while heading a judicial body, is still a public servant subject to the disciplinary powers of other branches of government,” Adebayo said.
He added that the Code of Conduct Tribunal, unlike the superior courts, operates as a unique judicial body tasked with trying violations of the Code of Conduct. As such, it falls within the legislature’s purview to act when misconduct occurs.
“If the National Assembly and the executive agreed that an official should be removed, that decision stands. The same principle applies to other branches of government intervening in cases of misconduct within their counterparts,” he explained.
Adebayo emphasized that the debate should not be reduced to legal technicalities but should focus on the ethical standards required for such critical roles.
“The chairman of the CCT is the custodian of public ethics. Any hint of misconduct undermines public trust in the tribunal and the judiciary. Someone in such a position must be above reproach, as their role is to enforce the same standards they must exemplify,” Adebayo said.
Reports of alleged misconduct involving the former CCT chairman, including unprofessional behavior, have further fueled public outcry. Adebayo argued that officials in such positions should step down voluntarily when their integrity is questioned.
Addressing the legal arguments raised by critics, Adebayo highlighted the difference between the Code of Conduct Bureau (CCB) and the Code of Conduct Tribunal (CCT).
“The CCB is an administrative body under the executive, responsible for compliance and asset declaration. The CCT, on the other hand, is a judicial body tasked with trying violations of the Code of Conduct. While the two institutions are distinct, both are subject to oversight and discipline by the legislature and executive,” he explained.
Adebayo urged Nigerians to approach the issue with objectivity, focusing on accountability rather than partisan arguments.
“The removal of the CCT chairman is about preserving the integrity of our institutions. This is not a matter of partisanship or legal maneuvering—it’s about ensuring that public servants are held to the highest ethical standards,” he said.
While some critics have called for judicial intervention to challenge the removal, Adebayo maintained that the National Assembly’s actions align with constitutional principles.
He emphasized the need for public officers, particularly those in sensitive roles, to maintain the highest levels of decorum and professionalism.
“This incident should remind us of the importance of accountability in governance. The integrity of our public institutions must remain sacrosanct,” Adebayo concluded.
The National Assembly has modified the National Drug Law Enforcement Agency (NDLEA) Act to prescribe life imprisonment for individuals found guilty of storing, transporting, or concealing illicit drugs and substances.
The amendment was adopted on Thursday during plenary, presided over by Deputy Senate President Barau Jibrin, following broad support from the senators.
The amendment reflects a harmonised position of the Senate and the House of Representatives on Section 11 of the NDLEA Act.
The House had earlier passed an amendment prescribing life imprisonment for drug traffickers, while the Senate had proposed the death penalty.
To reconcile the differences, a conference committee of both chambers was convened. Senator Tahir Monguno, Chairman of the Senate Committee on Judiciary, Human Rights, and Legal Matters, presented the harmonised version to the Senate.
He urged lawmakers to adopt the House’s position of life imprisonment, arguing that enforcing the death penalty could lead to the execution of over 900 accused persons currently awaiting trial for drug-related offenses.
The Deputy Senate President who presided over the plenary had put the resolution to a voice vote, and the majority of senators supported the amendment.
The approved version stipulates life imprisonment for offenders.
The amended section now reads:
“Anybody who is unlawfully involved in the storage, custody, movement, carriage, or concealment of dangerous drugs or controlled substances and who, while so involved, is armed with any offensive weapon or is disguised in any way, shall be guilty of an offence under this Act and liable on conviction to be sentenced to life imprisonment.”
This amendment aims to strengthen the fight against drug trafficking while addressing concerns over human rights and the judicial implications of the death penalty.
The move is part of efforts to curb the growing menace of drug trafficking and its adverse effects on Nigerian society. According to Senator Monguno, the life imprisonment penalty strikes a balance between deterrence and humane judicial practice.
With the amendment, the NDLEA now has a robust legal framework to prosecute offenders and combat drug-related crimes effectively.
President Bola Ahmed Tinubu has formally requested the National Assembly’s approval for a $2.209 billion (₦1.767 trillion) external borrowing plan to finance part of the ₦9.17 trillion fiscal deficit in the 2024 budget. The loan, included in the 2024 Appropriation Act, is critical to the government’s broader strategy for economic recovery and growth.
In a letter to Senate President Godswill Akpabio, President Tinubu noted that the borrowing aligns with the provisions of Sections 21(1) and 27(1) of the Debt Management Office (DMO) Establishment Act, 2003. He also indicated that the Federal Executive Council (FEC) had approved the plan.
The President explained that the funds would be sourced through Eurobonds or similar external financial instruments. A detailed summary of the loan’s terms and conditions accompanied the letter to guide legislative scrutiny.
“This borrowing is necessary to address the budget deficit and fulfill our fiscal strategy for 2024. Swift approval will enable us to move forward with mobilizing these funds,” the President stated, emphasizing the urgency of the request.
Senate President Akpabio referred the matter to the Committee on Local and Foreign Deb
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