E-Financial
‘Nigerian Businesses Lag Behind Global Trend in Reporting Systems’
Research released by Oracle and Accenture revealed that companies in Nigeria are not following the global trend of investing in financial reporting systems intended to improve their close, reporting and filing processes.
This leaves businesses with ineffective solutions and a lack of visibility, quality and confidence in their financial data.
The research report, ‘Challenges of Corporate Financial Reporting,’ highlights that businesses are unable to fully understand the cost of their financial reporting, with 74% of finance professionals unable to identify the total cost. This is remarkably higher than the global average of 60%.
The report noted that lack of investment in proper software and an over-reliance on spreadsheets and e-mails increases costs and results in ineffectual financial reporting and missed key deadlines.
Conducted by Dynamic Markets, the report surveyed 1,123 finance professionals in large organizations in 12 countries, including Nigeria, South Africa, the UAE, UK, USA, Germany and Russia.
All interviews were conducted between 10th February and 15th March 2012. Dynamic Markets interviewed 1,123 finance professionals in large organizations (250+ employees) in 12 countries around the world.
John O’Rourke, vice president EPM Product Marketing at Oracle, said: “It is clear from the report that businesses are well aware that financial reporting needs to change. The good news is that many are doing something positive about this by investing in new reporting systems. It seems however, that these investments are currently too piecemeal and sporadic to have had the desired effect. With businesses still looking to invest, our advice is clear: Take the time to find a truly effective solution that can address data integrity issues and optimize processes. By doing so, finance organizations can be more efficient, while accuracy can improve and reports are more likely to be completed on time.”
According to the research, businesses in Nigeria recognize the need to invest in new financial reporting systems to address efficiency challenges. 80 % of surveyed companies have made changes over the last three years to their close, filing and reporting processes. Meanwhile, only 18% have invested substantially in at least one of these three areas over the past 12 months, the lowest in the survey along with the Middle East.
“Whilst 16% of businesses in the survey have invested in just one of the three financial reporting phases (close, reporting and filings); only 2% have invested in all three. Unsurprisingly, spreadsheets (68%) and emails (36%) are heavily used to track and manage reporting on a daily basis.”
28%of finance teams claim to have seen their costs rise across the financial close, reporting and filing processes. Importantly, the situation is so opaque that managers across the finance function are unable to fully understand the financial impact/cost implications of managing and publicizing their company’s financial results. 74% of Nigerian respondents admitted they did not know the total cost of managing and publicizing financial results, whereas 60% of companies globally confessed that they were unable to put a figure to the cost.
Due to inadequate reporting systems, the majority of businesses reported that they still face significant problems with financial reporting. 88% of respondents admitted that they have inadequate visibility of reporting processes as compared with 68% globally, while 82% of finance managers reported that they find it difficult to control the quality of financial data across the course of their reporting, highlighting that additional attention should be paid to performance management.
Scott Brennan, executive director, Accenture Finance & Enterprise Performance Consulting Group said: “These results mirror what we see and experience, and they’re illustrative of why companies increasingly find it necessary in today’s age of volatility to invest in their performance management. Those that tend to be happiest with the results of their enterprise performance management are those that have a vision – they understand their company’s strategy; they have a clear view of the metrics they need to monitor and they know the importance of integrating an enterprise-wide EPM solution.”
Despite the challenges presented by unreliable and opaque data, finance teams are sanguine about how effectively they can do their jobs. 72% of finance managers feel their effectiveness is limited in some way by data analysis-related issues, most admitting they did not have adequate visibility of reporting processes. Failure to meet formal reporting deadlines was most common in Nigeria, with 32% of businesses indicating that they have missed statutory filings.
In addressing the challenge, businesses are intending to take steps to improve financial reporting methods, with 86% of companies likely to make a significant investment over the next five years, an approach which may address many of the challenges they currently face, and bring their reporting processes into line with their performance expectations. 38% of businesses are due to overhaul all three phases of reporting, a slightly lower percentage than the global average (46%)
Professor Andy Neely, Director at the Cambridge Service Alliance, commented: “Modern business success is founded on good quality data and the ability to analyse it in a meaningful way. Without these two factors, it is very difficult to formulate the right insight to help your company grow. The research shows that finance departments in many organisations are currently falling short of both these fundamentals and need to look now at how they can improve the way they collect, sort and interrogate financial data if they are to overcome the challenges they are currently facing,” Professor Andy Neely, director at the Cambridge Service Alliance, commented.
E-Financial
First Securities Brokers Empowers Nigerians to Trade in the Stock Market with the Launch of FirstInvest App
First Securities Brokers, one of Nigeria’s leading stockbroking firms and a subsidiary of FirstHoldCo Plc, is pleased to announce the official launch of the FirstInvest App, an innovative mobile investment platform designed to make stock market investing simpler, faster, and more accessible for Nigerians.
The FirstInvest App offers investors a seamless digital experience, enabling them to open and manage their investment accounts, monitor their portfolios, and trade equities listed on the Nigerian Exchange (NGX) directly from their mobile devices.
Designed with both new and experienced investors in mind, the platform combines convenience, security, and ease of use to help users make informed investment decisions anytime and anywhere.
As Nigeria continues to embrace digital financial services, the FirstInvest App reinforces First Securities Brokers’ commitment to driving financial inclusion and expanding access to wealth creation opportunities through technology.
Speaking on the launch, Fiona Ahmed Ahimie, Managing Director of First Securities Brokers, said: “The launch of the FirstInvest App represents another significant milestone in our digital transformation journey and our commitment to delivering innovative investment solutions to our clients.
“We understand that today’s investors value convenience, speed, and accessibility. FirstInvest has been developed to provide exactly that: a secure and intuitive platform that empowers individuals to participate confidently in the capital market from wherever they are.”
She added: “Our goal is to remove the traditional barriers associated with investing by placing the power of timely investment and decision making in the stock market directly in the hands of Nigerians. Whether you are taking your first investment step, actively managing your portfolio or just evaluating your investment, FirstInvest provides the tools and flexibility needed to support your financial aspirations.”
The app delivers a range of features designed to enhance your investing experience, including: Secure digital account opening and onboarding, Real-time access to investment portfolios, Buy and sell Nigerian equities with ease, User-friendly trading interface, Secure transaction processing, Convenient access to market information and investment opportunities.
The launch of FirstInvest aligns with First Securities Brokers’ broader strategy of leveraging technology to improve customer experience while supporting the growth of retail participation in Nigeria’s capital market.
First Securities Brokers remains committed to providing trusted investment advisory services, innovative financial solutions, and exceptional customer service, helping clients build and preserve wealth across generations. The FirstInvest App is now available for download on the Google Play Store and the Apple App Store.
The next currency crisis could accelerate the shift of the roughly $315 billion global stablecoin market into a digital-dollar alternative for citizens in emerging economies, notably in regions like sub-Saharan Africa and Latin America.
As local fiat currencies face devaluation and high inflation, citizens and businesses are increasingly utilizing smartphone-based stablecoins (such as USDT and USDC) as hedges and primary mediums of exchange.
According to the International Monetary Fund (IMF), the rapid adoption of dollar-linked digital assets—particularly in countries heavily affected by inflation like Nigeria—poses significant risks to monetary sovereignty.
With up to 95% of surveyed individuals in some African markets preferring to receive payments in stablecoins over local fiat, the rising volume of these decentralized, cross-border channels weakens domestic currency demand and dilutes the effectiveness of local monetary policy.
IMF observed in a report titled “Stablecoins in Nigeria: A Growing Cross-Border Channel” noted that the widespread use of stablecoins poses risks to monetary sovereignty, particularly as more individuals and businesses turn to digital dollar-linked assets for savings and transactions.
Nodding in agreement is Future Investment Initiative Institute (FII Institute), a non-profit organisation run by the Public Investment Fund, Saudi Arabia’s main sovereign wealth fund.
FII Institute said that central banks face structural challenges.
And according to the institute, when citizens move savings out of national banks and into private digital wallets, conventional capital controls lose their grip.
Institutions like the Bank for International Settlements warn that interest-bearing stablecoins compete directly with domestic-currency deposits, complicating financial oversight and making smartphone-based transfers incredibly difficult for authorities to monitor.
In Nigeria, Naira depreciation has pushed users toward dollar-stablecoins, according to report by Gino Matos in cryptoslate.com.
A stablecoin is a type of cryptocurrency designed to maintain a steady value by pegging its price to a reserve asset, such as a fiat currency (e.g., the U.S. dollar) or a commodity (e.g., gold).
They act as a bridge between traditional money and the digital asset world, providing the speed of crypto without the extreme price swings of assets like Bitcoin.
Federal government has reopened three federal government of Nigeria (FGN) bond issues valued at N1.2 trillion for subscription as part of efforts to raise long-term funds from the domestic debt market.
The Debt Management Office (DMO), which announced the offer on Tuesday, said the three reopened bond issues are each valued at N400 billion.
According to the DMO, the first offer is the January 2035 FGN Bond, a 10-year reopening, carrying an interest rate of 22.60 per cent per annum.
The second is the May 2028 FGN Bond, a 15-year reopening, with a coupon rate of 15.45 per cent per annum, while the third is the June 2037 FGN Bond, a 20-year reopening, also valued at N400 billion.
The office said the bond auction is scheduled for July 20, while successful subscriptions will be settled on July 22.
It explained that the bonds are offered at N1,000 per unit, with a minimum subscription of N50 million and additional investments in multiples of N1,000.
For the reopened bonds, the DMO said successful bidders would pay a price based on the yield-to-maturity that clears the auction, in addition to any accrued interest on the instruments.
Interest on the bonds will be paid every six months, while the principal will be repaid in full on the respective maturity dates.
The DMO reaffirmed that FGN bonds are backed by the full faith and credit of the Federal Government and constitute obligations chargeable on the general assets of the federation.
It added that the bonds qualify as trustee investment securities under the Trustee Investment Act and enjoy tax exemptions for eligible investors, including pension funds, under the Company Income Tax Act and Personal Income Tax Act.
The bonds are listed on the Nigerian Exchange (NGX) and FMDQ Securities Exchange and also qualify as liquid assets for banks in computing their liquidity ratios.
FGN bonds are long-term debt instruments through which investors lend money to the Federal Government in exchange for periodic interest payments and repayment of the principal at maturity.
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