Nigeria shows early signs of economic stabilisation, but ICAN warns that accountability and fiscal discipline are essential to sustain growth and reforms

Nigeria’s economy is showing early signs of stabilisation, but progress remains fragile, the Institute of Chartered Accountants of Nigeria (ICAN) said on Wednesday, stressing that accountability is essential to sustaining fiscal reforms and national development.

Also read: ICAN Mowe urges government to show tax dividends

The warning came during ICAN’s 2026 Economic Outlook, part of the organisation’s 60th anniversary celebrations in Lagos, which convened policymakers, regulators, industry leaders, and top professionals to discuss how transparency and fiscal discipline can strengthen Nigeria’s economic trajectory.

ICAN President and Council Chairman, Mallam Haruna Yahaya, described the event as both a reflection on past achievements and a forum for actionable solutions to the nation’s economic challenges.

“This edition of our Economic Outlook holds special meaning. At 60, ICAN is not looking back in nostalgia; it is looking forward with purpose,” Yahaya said.

“Accountability is not merely a governance ideal; it is an economic imperative. Countries with strong institutions, credible oversight, and transparent systems consistently outperform those burdened by weak governance and impunity.”

According to Yahaya, Nigeria’s economy recorded real GDP growth above four per cent in the second quarter of 2025, driven by gains in manufacturing, trade, and services. Inflation, though still elevated, eased to the mid-14 per cent range by year-end, supported by tighter monetary policy and improving supply conditions.

External buffers also strengthened, with foreign exchange reserves reaching multi-year highs, underpinned by stronger exports and foreign exchange reforms.

Trade and current account balances returned to surplus, while the Purchasing Managers’ Index hit 57.6 points, signalling improved business confidence.

Hajia Queensley Seghosime, ICAN Vice President and Chairman of the 60th Anniversary Planning Committee, highlighted revenue mobilisation, tax restructuring, and public financial management as essential for macroeconomic stability and inclusive growth.

“Accountability is the anchor that gives credibility to fiscal reforms,” she said.

“It ensures that tax policies translate into real public value, public resources are efficiently deployed, and citizens’ trust in economic governance is renewed.”

Mohammed Hayatu-Deen, Chairman of Alpine Investment Service Limited, noted that while inflation had moderated, economic growth remained uneven, real incomes were recovering slowly, and poverty persisted.

“Execution is key. How do we translate policy into tangible development that affects market indicators positively? Accountability shapes whether budgets are realistic, revenues are collected, and debt remains manageable,” he said.

The forum also highlighted the 2025 tax reforms as a structural shift towards transparency and rule-based governance, while underlining the evolving role of accountants as custodians of fiscal credibility, governance, and sustainability, with responsibilities spanning digital systems, ESG compliance, and risk management.

Distinguished panellists, including Dr Abiodun Adedipe, Dr Chinyere Almona, FCA, Abimbola Ogundare, FCA, and Mr Segun Ajayi-Kadir, alongside keynote speaker Prof Taiwo Oyedele, FCA, discussed strategies for strengthening governance and ensuring that reforms deliver measurable outcomes.

Yahaya concluded by urging participants to actively engage, share bold ideas, and commit to transparency and accountability.

Also read: ICAN sets record as 1,600 technicians earn induction

“ICAN’s role is not rhetoric; it is measurement, disclosure, and professional courage. As we look ahead, our commitment to accountability will remain central to the nation’s prosperity and to our relevance as an institution,” he said.