The Association of Chief Audit Executives of Banks in Nigeria (ACAEBIN) has reaffirmed its commitment to strengthening internal audit processes and capacity within banks to enhance transparency, regulatory compliance, and public trust. This was announced during ACAEBIN’s 59th Quarterly General Meeting (QGM) held in Lagos, themed “Building and Sustaining Trust in the Nigerian Banking Industry: The Role of Internal Auditors.”
Importance of Internal Auditors
In his address, ACAEBIN Chairman, Prince Akamadu, emphasized the increasingly critical role of internal auditors in promoting transparency, accountability, and strong corporate governance within the evolving banking landscape. “As Chief Audit Executives, we are at the forefront of fostering and promoting trust. Our role goes beyond executing audits; we ensure transparency, accountability, and compliance within our institutions,” Akamadu stated. He highlighted that the internal audit function is vital in managing risks and upholding the highest standards of corporate governance, which are essential for maintaining public trust.
Training and Development Initiatives
To support its mission, ACAEBIN has been actively involved in developing the skills and competencies of internal auditors across the industry. A recent initiative included a two-day training on Internal Control Over Financial Reporting, aimed at equipping auditors with the knowledge to effectively assess internal controls and ensure the accuracy of financial reporting. Akamadu also announced ongoing efforts to harmonize an Internal Audit Framework for the industry, which will serve as a comprehensive guide for new and experienced Chief Audit Executives.
Economic Impact and Public Confidence
In his keynote address, the Managing Director of Sterling Bank Limited and Chief Host of the meeting, Abubakar Suleiman who was represented by the Executive Director Operations of the Bank, Mr Raheem Owodeyi, stated that the banking industry remains the cornerstone of the Nigerian economy, and that a robust banking sector, not only safeguards the interests of stakeholders, but also serves as a catalyst for economic growth and development, noting that trust is essential for maintaining stability in the banking system, fostering economic growth, and ensuring the efficient functioning of the financial sector. It is the foundation of the relationship between banks and their customers, investors, regulators, and other stakeholders.
He noted that NBS data showed that the financial service sector contributed N3.8 Trillion to the national GDP in 2023, an increase of 26.5 per cent from the N3.1 trillion in the previous year, and around 6.35 per cent of the total GDP, which places our industry among the top five contributors to the economy. Therefore, the industry continues to remain an enabler of trade, enterprise, and productivity within the country.
He pointed out that to build and sustain trust in the Nigerian banking industry, internal auditors must: “Promote Ethical Practices, Adopt Advanced Audit Technologies, Invest in Continuous Professional Development, Align with Local and International Regulatory Requirements.”
Mr Suleiman urged Internal Auditors to commit to the strengthening of their internal audit processes and fostering a culture of transparency and accountability, noting that it is a panacea to building a banking industry that is trusted by all Nigerians, and one that plays an effective role as a catalyst for our nation’s development.
Focus on Governance
The meeting also featured insights on the importance of governance in the banking sector from Dr. Rabiu Onaolapo Olowo, Executive Secretary of the Financial Reporting Council of Nigeria, represented by Mr. Titus Osawe. He noted that internal auditors are pivotal in ensuring robust governance structures, which are necessary to maintain public confidence in financial institutions.
Conclusion
The event, attended by key stakeholders, including regulators and law enforcement agencies, concluded with a collective agreement on the need for a stronger, more independent, and proactive internal audit function in banks. The discussions highlighted ACAEBIN’s crucial role in fostering a culture of transparency, accountability, and trust in the Nigerian banking industry.
This recommitment by ACAEBIN signifies a proactive step towards strengthening the internal audit functions across banks, ensuring that the sector not only meets regulatory standards but also continues to build and sustain public trust, which is fundamental to its stability and growth.
