Opinion
Wike Stop Cattle Grazing In FCT Now

By Sule Ahmed Oyofo
Good News to residents of the Federal Capital Territory. They now have a new minister who has just stepped into office. The minister, His Excellency, Mr. Nyesom Wike is not a small figure in the political parlance.
As immediate past governor of Rivers State, he stood out as an action-oriented, no nonsense warrior, fighter and ended up being tagged as “Mr. Projects”.
He is variously described as “resolute”, rugged” and a “workaholic”. What is clear is that, he is not only bold, but fearless and a reputed pace setter. They also added that he is a man who stands by his decisions, who is out to replicate what he did in Rivers State—to right the wrongs in the society–in Abuja, the seat of the Federal Capital; to halt the systematic destruction of the infrastructure and the environment by the apparent and consistent display of lawlessness, regarding free movement of cattle’s in public roads, walkways and median.
Wike not only detest stagnant conditions, he is also not a friend to barriers and limitations. If he is told that the solution to a problem lies at the bottom of the Atlantic Ocean, and the only way to access it, is through the “Titan Submersible”—remember this? Wike would go there! That’s the stuff he is made off; Wike is the archetypal “I belong to everybody and nobody”—not the ones who simply mouthed it and did the opposite.
The news of his appointment as the honorable minister of the Federal Capital City must have been received as bad news by pretenders and defaulters. Key stakeholders agree that as part of his agenda, priority should be given to finding immediate solution to the menace of cows competing for possession of space with human beings along major highways. ‘This practice is unacceptable”, the minister charged in his inaugural press briefing. “We are not going to tolerate the issue of having cows in our public roads; yes, things are difficult, but you must not cause crises for other people”, he stated. In the heart warming news to disturbed Abuja residents, Wike promised to tackle the hydra-headed problem headlong and restore as much sanity and beauty, elegance, glittering vegetation and soothing environment to the city’s Master Plan. A key takeaway from his speech is that there will be consequences for breaking the law, which was largely absent in the last eight years. Abuja drifted inexorably into no-man’s land with all sorts, converging in the city and making life hell for lawful citizens. “I will step on toes, the big and mighty; I will step on your toes, if you are doing something wrong”, he warned.
The truth however is that people are tired. The vision to transform Abuja into a world class environment appears to have collapsed in the face of siege of cows. When Okada riders tried the same thing, a former minister and immediate past governor of Kaduna state promptly drove them out of town. Today, they are back in full force. The same applies to the herders who graze indiscriminately on any vegetation they find and defecate on the streets in open gutters, and other public places. The bad scent and the ugly sight of dungs is difficult to contend with. The feces attract flies and therefore put children at risk of contracting cholera, not to mention mosquitoes that thrive in filthy environments—leading to outbreak of malaria. The dangers of free moving cattle’s can never be substantiated, unless we are moving towards a Hobbesian society where anything goes. This is modern age and the world is going green; and the environment is supposed to be strenuously preserved; a degraded environment knows no cultural, ethnic or religious affinity. —just the same way as the zoonotic diseases usually transferred from cows to human beings (mad cow, anthrax, bovine, etc.) does not discriminate. Abuja, ranks amongst the best cities in the world and should discard whatever amounts to an aberration.
Can anyone imagine the discomfort if owners of wild dogs such as German Shepherd, Bulldog, Labrador Retriever, Rottweiler, Irish Wolfhounds, Afghan Hounds are allowed to roam freely in the streets? What about those who owns Tigers, Lions, Buffaloes, Horses and snakes? Wait a minute; cows cannot be exempted because they may be classified as herbivores, but they have been known to be destructive whether provoked or not and develop strange symptoms of violence! Possibly, some may want to argue that this comparison is extreme or that all animals are equal but like it was in Animal Farm, some are more equal than others! Unless, the Constitution is amended to accommodate the free movement of cows on public roads, only then can their presence be tenable. We do not have to wait for them to roam carelessly in High security areas such as Aso Rock Villa, The National Assembly, the precincts of the Supreme Court and Federal Secretariat, before serious action can be taken. The situation is absurd and constitutes an eyesore. The threat to public safety and health is too much to be ignored.
If Abuja is a mega city, why not retain the status? Which mega city in the world tolerates open grazing? It makes a mockery of the government at the center, not to mention the toxic nature of their presence around human beings. To all right thinking individuals, this is an abuse of privilege and rights of other road users. High Chief Mike Ozekhome in his submission while responding to an outburst from certain part of this country, did not mince words; he described the free movement of cows as “anachronistic and primitive”. He questioned why the perpetrators have refused to grow and access modern provisions for livestock preservation. He insists that freedom of movement is only for human beings and not for cattle’s, sheep, goats. He said that if the sale of alcohol is banned and brutally enforced in certain parts of the country—even though it is the constitutional rights of the ethnic group involved to move about and sell beverages freely—why not extend the same to cows?
He frowned completely at the practice arguing that if Cattle rearing which is a private and profit making concern is tolerated as a directive principle of state policy, then other ethnic groups have the right to storm public roads with their Pigs, crocodiles, goats and perhaps Elephants, in the name of proving their rights; let there not be commotion! “Sometimes we get lost in an effort to strengthen our fault lines”, he stressed.
Giant of Africa! That’s what we call ourselves. Should there be any doubt about comparing our city with the likes of Pretoria, Johannesburg, Cairo, Algiers, Riyadh? Should we remain stagnant and allow Kigali, Accra, Botswana to go ahead in hygienic matters? These are pertinent questions for all stakeholders to address. Keen observers say if government is able to introduce stringent laws like “Park and Pay” policy and enforce it clinically, what stops them from doing the same with regards to open grazing? Cows have been known to stray into supermarkets, Petrol stations and even homes and cause panic and fear among children and parents.
Until the arrival of Mr. Nyesom Wike, mum have been the word; everyone looks on as though nothing can be done. Much as we try, we wake up to find the same primordial and medieval setting; Who bell the cat? Read my lips—not my actions. For this degenerative ambiguity, Abuja may well now be a byword for disobedience—almost defaced by an army of youths on Okada and Keke Nape. If not controlled, one wonders what Abuja would be like in 10 years. But the biggest worry is the obvious misplacement of goals and priories by relevant enforcement agents ranging from Vehicle Inspection Officers(VIO), Federal Road Safety Officers, AMAC agents who crudely block law abiding motorists in vain pursuit of checking particulars—regardless whether cows are roaming right in their midst. Modern countries have developed “chips” for checking vehicle particulars; but here in Nigeria, VIO’s have vehemently refused to embrace technology, preferring the decadent and corrupt means.
Experts contend that should they muster the same energy in checkmating the movement of cows, perhaps there would have been sanity. AMAC officials have converted Abuja roads into a cauldron for crazy revenue generation. The Nigeria Police say, theirs is to offer “protection” to enforcement agencies like the Abuja Environmental Protection Board (AEPB) if and when ever they go for enforcement. What about the Civil Society Organizations (CSO’s), Nigerian Labor Congress (NLC)? They have arrogated themselves the job of running after shadows, chasing corrupt government officials; even members of the National Assembly are culpable in this tragic act. How do you drive big cars and wear starched agbada in a disorderly environment? We are all too relaxed and casualties.
This is the time for action.
In other countries, the same intractable problem exists, but they have managed with strong will and desire to stem the tide. In the United States, City Planners were able to come up with new strategies that kept abattoirs, piggeries and diaries from city limits; They also used “zoning ordinances” to locate their livestock and slaughter houses. Concerns for Public Health became a rallying point for them to create the hygienic city of their dream. A board of health was created to help monitor and abate nuisances from the movement of cattle within city limits. In India, where Cows are not eaten, a bill aimed at prohibiting movement of stray cattle within city limits titled “Cattle Control Bill” was enacted in April 2022. Cattle Herders are also licensed and require their Cattle to be “tagged”. If the owner fails to do so, he will be instantly penalized. In Accra, Ghana, permits and licenses are introduced along with regular vaccination and inspection to handle the situation. A Bye-law of Accra Metropolitan Assembly 1995, Section 79 of the LGA, 1993(Act) 462 stipulates that “no person shall keep any cattle, sheep or goat within areas of administration without permits”. The permits are reviewed periodically. In Kigali, Rwanda, movement of cattle are restricted to outside “built-up” areas. They are confined to specific locations mostly in the Hill side suburbs. Kigali infact practices ranching full-scale! They have ensured that public places like markets, roads are declared “cattle free”. In South Africa, movement of cattle is suspended unless those designated for the slaughter house. The suspension is reviewed weekly to ensure strict compliance. Their legislation is done purely for the purpose of preserving food security and livelihoods. In Botswana, their Road Traffic Act Section 100(2)(b) states that “no owner or person in charge of any cattle or other animals to be on the main road unless they are attended to by a person in such a manner as to have proper control over them”. They followed this up with an attempt to fence busy public roads and mark them with road signs.
In Abuja, the Federal Capital, though no written law bans the practice, the problem is likened to Catch-22—a dilemma or difficult circumstance from which there is no escape, because of the mutually conflicting or dependent situation. It is potentially an explosive issue, because of the violence frequently displayed by these herders. Three examples would suffice. In July 15, 2023, at Area One roundabout, opposite the Moshood Abiola Stadium, a handful of people gathered round a spot where a Volkswagen vehicle was parked with the bonnet shattered. A dead cow lay in front apparently smashed by the vehicle owner. It was obvious the parties involved were trying to manage the situation from spiraling out of control. In Lokogoma, near an Estate by the name Peace Court, a farmer stood by in tears as cows mowed down his crop of maize. He was obviously in grief. The herders made no attempt to halt the destruction, including the motorists who hurriedly sped away. This happened on Saturday morning, August 12, 2023.
In far away Dei Dei, one of the fast springing satellite towns in the FCT, a motorist who mistakenly ran into herds of cattle as they attempt to cross the road received a dirty slap for not stopping on time. The crazy under aged herder who slapped him looked at him menacingly probably with the intention to escalate the violence. Without uttering a word, the motorists drove off. Disturbing scenarios like this are not uncommon in our midst. Cattle business is not listed in the Corporate Affairs Commission, but Agriculturalists insist that population growth, increasing urbanization and climatic changes are factors which necessitated the continued presence and clash with human beings.
But Osi Braimah, the Director of the Abuja Environmental Protection Board(AEPB) countered in June 2023, that the extant laws and rules are clear: that no one is allowed to keep animals in his property, neither allowed to graze on the streets! This position was echoed by ex-minister Muhammed Bello who subsequently directed that herdsmen must move their cattle out of the city or face prosecution. He followed that threat by identifying a permanent grazing reserve for the herdsmen. In all 33,485 hectares of land was allocated to handle not less than 7 million cattle’s. The allocated places include Paikon Kore 8,500 hectares; Karshi 6,000 hectares; Kawu in Bwari 9,000 hectares; Rubochi in Kuje 9,985 hectares. A committee to pursue this objective was raised in 2017. As a way of carrying everybody along, the umbrella body of the Herders the Miyetti Allah Cattle Breeders Association of Nigeria(MACBAN) were engaged and encouraged to nominate some of its bright young men to be part of the committee. These young men were in turn mandated to educate and encourage members to discontinue the practice of sending boys under age 18 to rear cows in the streets. A public enlightenment followed to actualize that campaign.
Despite these efforts, the problem has refused to abate. The presence of mobile courts responsible for sanctioning offenders with a paltry fine of N1,000 and N5,000 has not deterred them. “Safety rules are not known to these small boys who rear these animals” disclosed a source at the AEPB. Attempts made in the past to confiscate arrested and detained cows by the AEPB enforcement has resulted in shocking revelations about ownership. Four out of seven of such disputes ended up belonging to powerful forces in high places. “We tried to confiscate some troublesome cows recently, only for soldiers to show up and demand their release”, said a source in AEPB. It may surprise readers that the AEPB Act No 10 which has not been strengthened since 1997 has only provision for stray animals in the city!
A check on the National Environmental (Sanitation and Waste Disposal) Regulation of NESREA is particular about substances that litter the environment and pollutants; nothing to do with animal control. A few members of the National Assembly spoken to argued that no one has brought any such complaint to them. Then you will probably want to ask what about their oversight function? These anomalies are only possible in an environment where there no legal implications.
Thankfully, the new minister has promised to “step” on toes. He has to start by revisiting the deterrent measure in place and give them more bite. Secondly, he has to send the AEPB act for overhaul; NESREA too should not be left out. They are to compliment the efforts of AEPB. Wike has to find ways to make the VIO’s, the Road Safety, Police, CSO’s, NLC and TUC’s work together, including Abuja Municipal Council (AMAC). He also has to get members of the National Assembly supervising environment on his side.
Members of the Miyetti Allah should be brought on board. It is to their credit and future generation to embrace modern trends. They should be constantly reminded that by choosing to remain traditional, in no time, they would be extinct. In visiting the Abuja Master Plan, the honorable Minister must know that Abuja is conceived in Five Phases. And of the five, only two are fully developed. Places like Karsana, Dakibiyu, Bunkoro, Katampe, Pyakasa, Ketti, Wumba, Baraji, Karmo and even Jahi are not developed. All the past ministers have only paid lip services to these other places, preferring to remain in Area One, Maitama, Asokoro. Guzape is not left out.
Remarkably, a visit to some of these places will reveal the presence of herders in the vicinity. They claim to have been displaced—and yet to be settled despite doing so for the Gbagi’s and Gwari’s who also claim to own the land. “Go to Apo Dutse, Waru, Galadimawa, Guzape, Durumi and you will see some of these herder’s settlement and their families”, disclosed an authority in AEPB. “The government still has to look at their complaints although the Gwari’s and Gbagi’s own the land, not the herders who are itinerant”, the official stated.
The point must not however be lost; if every human being should die, leaving the environment only for cows, how will the cows themselves survive? The people committing these crimes are not aliens; they are human beings. We have to determine the type of society we want to build and put aside sentiments. The environment does not differentiate between ethnic groups, religion or political divide. It is for everyone, including the herders. Over now to His Excellency Mr. Nyesom Wike to deliver. Let us call a spade a spade and be guided.
Sule Ahmed Oyofo.
Public Relations Analyst.
08054260241
Opinion
Saviour Enyiekere : Hitting The Ground Running At NASC

BY ABUBAKAR YUSUF
History was made again today at the National Assembly Service Commission NASC as the newly appointed as Executive Chairman,Dr Saviour Enyiekere and his Commissioners, was sworn in by President Bola Ahmed Tinubu at the Presidential villa to signify the beginning of another five years journey for the new management of the Commission.
Dr Enyiekere who was appointed along with his 12 commissioners representing the six geopolitical zones on 20th, February, 2025, assumed duty on 5th, May, 2025 few months after their appointment after been taking oath office.
He took the oath of office as the sixth National Assembly Service Commission Chairman since the inception of the Commission over four decades ago .
Until his appointment, Enyiekere, an environmental specialist, was the Deputy Chief of Staff to the Senate President and had played a leading and strategic roles in the last 19 months before his elevation.
Soon after he took the oath office along with his commissioners , he assumed duty and was hosted by management and staff of the National Assembly Service Commission NASC and by extension, the National Assembly management led by Barrister Kamoru Ogunlana, the new Clerk to the National Assembly CNA.
Fresh and determined to make a difference,While acknowledging the audience along with his new commissioners , he described today’s occasion as unique with the date falling to 5/5/2025, stating his determination to work with all stakeholders at the NASC and NASS.
He eulogised the outgone leadership of the commission and also paid a glowing trubutes to the deceased ones , acknowledging their unique performance and contributions to the development of the commission in all areas.
Enyiekere who solicited for the cooperation of the management, staff and staff union , promised to prioritize the welfare and well-being of staff of the commission.
The New Executive Chairman , National Assembly Service Commission NASC, Dr Saviour Enyiekere also promised to work harmoniously with the management of the commission , staff, and members of Parliamentary Staff Association PASAN.
Dr Saviour who attracted a conference hall that was filled to capacity bare his mind of carrying all and sundry along in his new administration .
Assertive, young and brilliant to manage the affairs of the commission, he promised to promote and sustain the legacies of management and previous leadership saying their contributions was indelible on the sands of time.
He used the opportunity to appreciate Nigeria’s President and reiterated his commitment along with his commissioners to promote and protect the Renewed Hope Agenda of the President Bola Ahmed Tinubu’s administration, with full support the leadership of the National Assembly under Senator Godswill Akpabio and Rt Honourable Tajudeen Abbas, lauding them for a job well-done and careful selection of the new Chairman and members/commissioners of the commission.
While describing the new responsibility as hectic and challenging, , saying with prayers , God will see us through.
Dr Saviour Enyiekere who promised to keep intact the good records of NASC management and the staff union , so as to ensure harmonious working relationship going forward.
During the handing over ceremony, The Secretary to the Commission, Mr
Lucky U. Ikharo, while presenting the handover documents to the new NASC boss, pledged the total commitment of the NASC Management towards the effective performance of the Commission’s assignment.
Speaking further during the handing and talking over ceremony at the Commission’s Conference Room, the new NASC boss told officials of the National Assembly Service that his leadership would emphasise the welfare of the workers of the Service, harmonious working relationship and productivity.
The new Chairman and his commissioners anxious to make a difference asked all stakeholders to extend their fellowship, admonition and possibly corrections.
Dr Saviour , a grassroot politician , with indepth experience in civil and political exposure, promised to make a difference without further delay .
The entire National Assembly Service Commission NASC bounced back to life after three months since the exit of the former Executive Chairman , National Assembly Service Commission NASC, Engr Ahmed Kadi Amshi FNSE.
Highlights of the occasion included group photograph, media interview and interactions with the management and staff of both the National Assembly Service Commission NASC, National Assembly leadership led by Barrister Kamoru Ogunlana along with the new commissioners.
With his assumption of duty and his promises, no doubt a new dawn has encapsulated and heralded the National Assembly Service Commission NASC and his leadership.
In a goodwill message, the Clerk to the National Assembly, Barrister Kamoru Ogunlana, assured the new Commission of the full co-operation of the National Assembly Management towards achieving success. He, however, pleaded with the Commission to carry the National Assembly Management along on key decision-making.
The Honourable Commissioners that reported to duty alongside the Chairman include: Mr. Hanmation Mark Tersoo and Mr. Salisu Umar Agboola-Balogun (North-Central); Alhaji Lawan Maina Mahmud and Aminu Ibrahim Malle (North-East); Senator Suleiman Othman Hunkuyi and Hon Yusuf A. Tabuka (North-West), Chief Festus Ifesinachi Odii (South-East), Mary Samuel Ekpenyong and Mr Patrick Giwa (South-South), Mrs Taiwo Olukemi Oluga and Ipesa-Balogun, Afeez (South-West, with
The Honourable Commissioners that reported to duty alongside the Chairman include: Mr. Hanmation Mark Tersoo and Mr. Salisu Umar Agboola-Balogun (North-Central); Alhaji Lawan Maina Mahmud and Aminu Ibrahim Malle (North-East); Senator Suleiman Othman Hunkuyi and Hon Yusuf A. Tabuka (North-West), Chief Festus Ifesinachi Odii (South-East), Mary Samuel Ekpenyong and Mr Patrick Giwa (South-South), Mrs Taiwo Olukemi Oluga and Ipesa-Balogun, Afeez (South-West), with Festus Ifesinachi Odii not yet resume from the South-East .
Written BY ABUBAKAR YUSUF on yus.abubakar3@gmail.com.
Opinion
Life At Sea: Mental Health And Wellbeing – The Untold Struggles Of Seafarers

By Capt. Caleb Danladi Bako
The global shipping industry is the lifeblood of international trade, with nearly 90% of goods transported by sea. Behind this vast network of commerce are the seafarers professionals whose dedication keeps the world’s economy afloat. Yet, while the focus often falls on operational efficiency, safety, and environmental concerns, an equally critical aspect remains largely in the shadows: the mental health and wellbeing of those who spend months away from home, isolated and often battling invisible struggles.
Having worked both at sea and now within the maritime industry ashore, we have witnessed firsthand the emotional challenges faced by seafarers. Life at sea is often romanticized, but the reality is far more complex. Prolonged isolation, communication barriers, high-pressure environments, and the unpredictability of life at sea contribute to a unique mental health crisis that has, for too long, gone unspoken.
A seafarer’s life revolves around routines, watches, and operations that leave little room for personal downtime. The absence of family support systems limited recreational facilities, and minimal mental health resources onboard amplify feelings of loneliness and helplessness. Recent studies, including those by the Mission to Seafarers and the International Seafarers’ Welfare and Assistance Network (ISWAN), reveal alarming rates of depression, anxiety, and even suicidal ideation among crew members. These findings highlight a pressing need for the industry to prioritize mental health with the same seriousness as physical safety.
The COVID-19 pandemic further exposed and intensified these struggles. Hundreds of thousands of seafarers were stranded aboard ships, unable to disembark for months beyond their contracts. Crew change crises turned ships into floating prisons, exacerbating feelings of abandonment and mental exhaustion.
Though some shipping companies have since introduced mental health initiatives such as access to tele-counselling and mental wellness apps, these measures are still the exception rather than the norm.
Mental health challenges at sea are not merely personal struggles; they can have direct safety implications. Fatigue, anxiety, and depression diminish focus and decision-making ability, increasing the risk of accidents. Thus, protecting seafarers’ wellbeing is not only a moral obligation but a safety imperative for the entire industry.
As industry experts and former seafarers, we believe urgent cultural change is required. Shipping companies must move beyond token programs to embed mental health care into the fabric of maritime operations.
Practical steps include mandatory mental health training, confidential support systems, improved internet connectivity for family contact, regular shore leave, and destigmatization of seeking help.
It is time to bring the untold struggles of seafarers into the light. By acknowledging their mental health needs and committing resources to support them, we honor not only their critical role in global trade but their fundamental humanity.
Capt. Caleb Danladi Bako
Maritime expert and Academic Researcher
E-mail: Caleb.Danladi@plymouth.ac.uk, dancb2k@yahoo.com
Phone: +2348064218253
Opinion
FRC; Deploying Controls, Regulations to Achieve 2020-2030 SDGs

BY ABUBAKAR YUSUF
In line with the decade of action , realizing SDGs 2020-2030 agenda, the mission and vision of government agencies, parastatals and departments must be in tandem with the present realities.
Therefore, efforts by the Financial Reporting Council, FRC to implement the already reviewed annual fee due for over two years cannot be over emphasized.
The challenges posed and identified by Manufacturers Association of Nigeria (MAN), as the umbrella body of companies operating in Nigeria may be normal and usual resistance to positive changes, posed by such bodies in the development, improvement and payment of dues across board.
But , irrespective of that , FRC under the leadership of Dr Rabiu Onaolapo Olowo has developed a new template, innovations and initiatives to drive the new council in line with not only the economic indices and realities in the country, but global requirements.
This is in accordance with the zeal to generate more revenues, increased revenue generation for remittances into the federation account to enable government meet up it’s obligations, through internal mechanism and revenue drive .
With the global standards and realities, FRC cannot be operating under the cocoon of archaic policies and programs, leaving behind the modern and modest standards of International Financial Reporting Standards (IFRS), among others requirements.
Penultimate, the experience of the council towards payment of dues and remittances had been lackadaisical and laced with various resistances , litigations and sharp practices, particularly before the new fee reviewed under the guise of many anomalies, which MAN had overlooked .
Therefore, as the administrative head charged with controls and regulations, The Financial Reporting Council, FRC cannot be seen to be underpinned between new evolution and old order , as a government agency under an act amended , the singular decisions to review its activities is encumbered as an independent entity.
Experience have showed that some publicly traded companies, listed on the Nigerian Stock Exchange (NSE), continue to underreport the claims and litigation section of their annual reports, This is despite the Financial Reporting Council of Nigeria (FRC)’s pledge to curb this before now.
The companies, published their 2023 audited financial reports at various times in 2024. However, each report contained figures lower than what was earlier revealed in a 2023 report.
According to the reports, the companies claimed cases against them in court amounted to huge amount .
“There are certain lawsuits pending against the companies in various courts of law. The total contingent liabilities in respect of pending litigations as at 31 December 2023 is ₦7.42 billion.”
“Some companies had the highest reported figure for claims and litigation of some companies in 2023. They stated that the cases against them amounted to N1.008 trillion claims. However, by June 30, 2024, the figure had become zero.”
This is at variance with FRC position, were many companies were underreporting their claims.
Since litigations may not stand the taste of time as adopted by previous leadership, the best solution is to effect an administrative decision beyond stagnating the activities of the new council and effect a new lease of life into the organization, through the enactment of the new regulations, reviews and controls.
“Not disclosing these claims in their annual reports for over a decade violates the International Financial Reporting Standards (IFRS), hence the new leadership envisaged in its new position and decision.”
“Despite the FRC’s vocal commitment to addressing inaccurate financial reporting, it was revealed that partial compliance two years later.”
“The International Financial Reporting Standards (IFRS) are a set of accounting standards introduced to govern how particular types of transactions and events should be reported in financial statements. They were developed by the International Accounting Standards Board (IASB).”
“This IASB has a set of accounting standards that guide certain aspects of financial reporting.”
“IAS 37 is a standard for accounting for and disclosing provisions, contingent liabilities and assets.”
It describes contingent liabilities as “possible obligations whose existence will be confirmed by uncertain future events that are not wholly within the control of the entity”.
“An example is litigation against the entity when it is uncertain whether the entity has committed an act of wrongdoing and when it is not probable that settlement will be needed,” it states.
“A contingent liability is not recognised in the statement of financial position. However, unless the possibility of an outflow of economic resources is remote (distant), a contingent liability is disclosed in the notes.”
“Going by this provision, all defendants in the suit had contingent liabilities of at least N1.2 trillion each.”
“It is important to highlight that companies in business either have assets or liabilities. Assets add to the financial health of the company while liabilities are losses. ‘Contingent’ is a term that refers to something that is subject to probability or chance, and just as there are contingent liabilities, there are contingent assets.”
“Some companies were taking advantage of an exploitable gap in the IAS37 to operate .”
Interestingly, Council generally observed an exploitable gap in disclosure requirements as per IAS 37: ”
Provisions, Contingent Liabilities and Contingent Assets, especially as it relates to Contingent Liabilities. Paragraph 92 of IAS 37 which states that ‘In extremely rare cases, disclosures of some or all of the information required by paragraph 84-89 can be expected to prejudice seriously the position of the entity in a dispute with other parties on the subject matter of the provision, contingent liability or contingent asset.”
” In such cases, an entity need not disclose the information, but shall disclose the general nature of the dispute, together with the fact that, and reason why, the information has not been disclosed’ is instructive in this regard. This implies that entities are not compelled to disclose number of claims and financial implications thereon as such information has the potential to prejudice their position in disputes with other parties.”
“In the course of the reports, some companies declared huge amount of N11.3 trillion in contingent liabilities in its 2023 annual report; the highest it had ever declared since 2014.”
However , to achieve the global SDGs 2020-2030 agenda with Nigeria playing a leading position, the ongoing sharp practices, inactions, anti government and anti council policies by companies in the area of declaration of transparent and accountable financial reports , that is in tandem with the global standards and practices must be adhered to, in line with the intention of the new management and leadership under Dr Rabiu Onaolapo Olowo as the Executive Secretary, Chief Executive Officer ES CEO of Financial Reporting Council, FRC.
Written BY ABUBAKAR YUSUF on yus.abubakar3@gmail.com.