MGI Worldwide member firms discuss accountancy standards in West Africa as part of the most recent IAB cover story
The May 2019 edition of the International Accounting Bulletin (IAB) has been published, with features from MGI Worldwide accounting association member firms in Nigeria and Ghana.
Nigeria
Regulatory and legislative changes in Nigeria have been tempered by the fragile state of the economy, but conditions are improving, and the administration led by President Muhammadu Buhari has initiated various economic policies that have significantly affected Nigeria’s accounting market.
Haruna Nma Yahaya, partner at accountancy network member firm Haruna Yahaya & Co., shared the positive changes that have occurred, including blocking leakages in government finances and management, fighting corruption, and the recovery of looted funds.
Haruna explained that “these policies have created demand for accounting services in the areas of forensic audit and preparation of feasibility studies as well as preparing financial statements.
"The implementation of the Economic Recovery Growth Plan has led to such positive changes such as capital expenditure and inflows, especially from foreign direct investment. Farmers have been empowered through the CBN anchor borrower scheme, and small and medium enterprises have been encouraged and empowered through the Tradermoni scheme."
MGI Worldwide ranked 15th for fees and 17th for staffing in the latest IAB analysis for Nigeria.
Ghana
Ghana has also experienced a challenging economic environment with inconsistent approaches to accounting services.
Timothy Osei, partner at MGI O.A.K Chartered Accountants, shared his belief that there is significant growth potential in the area of advisory engagements and referred to liquidity constraints as a major recent challenge.
"The growth in GDP and other economic indicators recorded in the 2018 financial year were remarkable,” comments Tim. "The positive steps taken by the Central Bank of Ghana to sanitise the banking space and also to improve the liquidity position of the entire financial system has been a major boost for clients and practitioners.”
Tim also explained, however, that the general liquidity problem suffered by the financial system between 2016 and 2018 translated into clients’ inability to pay practitioners for engagements. In conclusion, while the financial system in Ghana has greatly improved, he acknowledged that it may take a little more time for some clients to experience this positive effect.
Fee income from MGI Worldwide’s Ghana-based member firm, MGI O.A.K Chartered Accountants, rose by 67% per cent in the latest dataset whilst staffing numbers remained the same. This meant the accountancy network secured 12th place raking for fees and 13th for staffing numbers in the latest IAB figures.
Kenya
In Kenya, MGI Worldwide currently ranks in 15th place for fee income and 14th for staffing volume thanks to our sole Kenyan member firm Alekim Associates.
Felix Kimoli, Partner at Alekim Associates LLP says, “The ranking means that the market is confident about us. This is as a result of us focusing on quality and following the global audit methodology. We will always endeavour to be of help our clients by supporting them make informed decisions on financial matters.”
Members can download the May 2019 edition of the IAB by signing into the member area.
MGI Africa is part of MGI Worldwide, a top 20 ranked global accounting network with some 5,200 independent auditors, accountants and tax experts in over 260 locations around the world.