The Institute of Chartered Accountants of Nigeria (ICAN): Brief Origin, Functions, Salary Structures And Contributions To National Development

The Institute of Chartered Accountants of Nigeria (ICAN) is the organization responsible for the regulation and control of the accounting profession in Nigeria. It was established in 1965 by the Act of Parliament No. 15 of that year. ICAN was formed to promote professionalism and ethics in the accounting profession, and it sets standards for the practice of accounting in Nigeria.

This article talks about ICAN’s crucial role in regulating the training and certification of accountants in Nigeria. It dwells extensively on how the institute conducts examinations for aspiring accountants and grants membership to qualified individuals. It also brings out the various functions of ICAN, salary structures and its significant contributions to national development.

ICAN monitors the professional conduct of its members, ensuring that they adhere to ethical standards and maintain the highest level of competence. From its modest beginning, with 250 members and a history of serving the public interest since 1965, the Institute has become Africa’s largest Professional Accounting Organization.

They also represent over 46,000 Chartered Accountants and 23,000 Associate Accounting Technicians. In addition, they are very talented, ethically committed professionals working in every sphere of the Nigerian economy.

While ICAN primarily focuses on the accounting profession, it is important to note that taxation is a significant aspect of accounting. Taxation in Nigeria is overseen by various government agencies, including the Federal Inland Revenue Service (FIRS). The FIRS is responsible for assessing, collecting, and accounting for federal taxes in Nigeria.

Key Functions of ICAN

The Institute of Chartered Accountants of Nigeria (ICAN) performs various functions to regulate and promote the accounting profession in Nigeria. Some of the key functions of ICAN include:

1. Professional Education and Training: ICAN is responsible for providing education and training to individuals aspiring to become chartered accountants. The institute conducts examinations and awards qualifications to successful candidates. It sets and maintains high standards for the education and training of accounting professionals.
2. Examinations: ICAN conducts rigorous examinations that candidates must pass to become chartered accountants. These examinations cover various aspects of accounting, including financial accounting, management accounting, taxation, and auditing. Successful completion of these exams is a prerequisite for membership in ICAN.
3. Membership Regulation: ICAN regulates the membership of chartered accountants. It grants membership to individuals who have successfully completed the required examinations and fulfilled other membership criteria. The institute also monitors the professional conduct of its members, ensuring that they adhere to ethical standards.
4. Continuing Professional Development (CPD): ICAN promotes continuous learning and development among its members. Through its CPD programs, the institute ensures that members stay updated on changes in accounting standards, regulations, and other relevant developments in the field.
5. Ethical Standards: ICAN sets and enforces ethical standards for its members. The institute expects its members to maintain the highest level of professional integrity and adhere to ethical guidelines in their practice of accounting.
6. Advocacy: ICAN plays a role in advocating for policies that enhance the accounting profession and contribute to the overall economic development of Nigeria. The institute engages with government bodies, regulatory authorities, and other stakeholders to promote the interests of the accounting profession.
7. Research and Publications: ICAN conducts research and publishes materials that contribute to the knowledge and development of the accounting profession. This includes publications on accounting standards, taxation, auditing, and other relevant topics.
8. Collaboration and Partnerships: ICAN collaborates with other professional bodies, educational institutions, and international accounting organizations to enhance the global standing of the Nigerian accounting profession. This includes participating in international accounting standards-setting processes.

By performing these functions, ICAN aims to ensure that the accounting profession in Nigeria maintains high standards of competence, professionalism, and ethical conduct.

ICAN’s Salary Structures

This giant professional body pays its staff handsomely.

According to a reliable source, the average salaries for Institute of Chartered Accountants of Nigeria (ICAN) is 136,500 Naira. This data is collated by 2 employees from Institute of Chartered Accountants of Nigeria (ICAN). The roles include Administrative Advisor, Researcher. The gender distribution at Institute of Chartered Accountants of Nigeria (ICAN) based on salary submitted is male (50%), female (50%), respectively.

Professional Accountants with a qualification of ICAN, ANAN or ACCA earn more salary than ordinary accountant without a certification.

The Institute of Chartered Accountants of Nigeria (ICAN) and the Association Of National Accountants Of Nigeria.

It is also important to note that years of experience count in salary earnings. For instance, Accountant with up to 3 – 4 years experience can earn up to ₦100,000 intermediate salary while they expect an experienced professional accountant with over 10 years experience to earn above ₦150,000.

How Much Do Accountants Earn In Nigeria?

The services of an accountant include creating sales and cash flow reports, administering payroll, keeping balance sheets, carrying out billing activities, managing budgets, keeping an inventory, filing taxes, etc.

ICAN’s Contributions To National Development

The Institute of Chartered Accountants of Nigeria (ICAN) has made significant contributions to national development in various ways. Some of the notable contributions include:

1. Professionalization of the Accounting Sector: ICAN has played a crucial role in professionalizing the accounting sector in Nigeria. By setting high educational and ethical standards, conducting rigorous examinations, and granting chartered accountant status, ICAN has helped create a cadre of well-trained and ethical accounting professionals. This has contributed to the overall competence and reliability of financial reporting in the country.
2. Capacity Building: ICAN’s emphasis on education and training has contributed to the development of a skilled workforce in the accounting and finance sector. The institute’s educational programs, including continuing professional development (CPD), ensure that its members stay abreast of global best practices and contribute effectively to organizational success.
3. Corporate Governance: ICAN promotes principles of good governance within organizations. By advocating for strong corporate governance practices, including transparent financial reporting, effective internal controls, and ethical behavior, ICAN contributes to the creation of well-managed and accountable institutions. This, in turn, fosters investor confidence and economic stability.
4. Taxation Expertise: ICAN, through its members specializing in taxation, contributes to the development and implementation of sound tax policies in Nigeria. This expertise is crucial for the government in maximizing revenue collection, promoting fiscal responsibility, and creating a conducive business environment.
5. Advocacy for Economic Policies: ICAN actively engages with government authorities, regulatory bodies, and policymakers to advocate for policies that enhance economic development. The institute provides expert input on financial and economic matters, contributing to the formulation of policies that are conducive to sustainable economic growth.
6. Small and Medium Enterprises (SMEs) Support: ICAN plays a role in supporting the development of small and medium-sized enterprises (SMEs) in Nigeria. By providing guidance on financial management, accounting practices, and compliance with regulatory requirements, ICAN contributes to the growth and sustainability of SMEs, which are vital for job creation and economic diversification.
7. International Collaboration: ICAN’s collaboration with international accounting organizations facilitates the adoption of global best practices in accounting and financial reporting. This alignment with international standards enhances the credibility of Nigerian financial systems and institutions in the global marketplace.
8. Research and Thought Leadership: ICAN conducts research and publishes materials that contribute to thought leadership in the accounting profession. This research helps in addressing emerging challenges and providing insights that can inform policy decisions and business practices.

In summary, ICAN’s contributions to national development encompass the professionalization of the accounting sector, capacity building, promotion of corporate governance, expertise in taxation, advocacy for economic policies, support for SMEs, international collaboration and thought leadership. These efforts collectively contribute to the economic development and financial stability of Nigeria.