Adoption of the International Financial Reporting Standards (IFRS) by Nigerian companies will attract more foreign investment into the country, Director, Audit Services, KPMG Professional Services, Mr. Willem Haarhoff, has said.
Speaking at the triennial delegate’s conference of the Independent Shareholders Association of Nigeria (ISAN) in Lagos, Haarhoff said while the major constraint to implementation of IFRS was the knowledge gap, which is affecting the adoption rate, the rate of implementation was encouraging.
He, however, noted that as more companies implement the IFRS, more foreign investments would flow into the country.
The keynote speaker at the event, Dr. Doyin Salami of the Lagos Business School, said foreign portfolio investment in the nation capital market had hit $15 billion this year.
He said change in spending pattern had attracted international attention to the nation economy, especially the equities market.
But he added market regulators needed to be concerned on how to improve local participation in the market to avoid market crash in case of investment outflow by foreign investors.
Salami said that market regulators should come up with strategies aimed at improving local investors participation in the nation bourse to avoid a repeat of what happened in 2008.
Also speaking, the Chairman of Honeywell Flour Mills Plc, Oba Otudeko, said Nigeria presented a lot of opportunities that could make people to be extremely rich, emphasising that investment decision making required critical understanding of issues around investments.
According to him, investment is not about following the crowd but analytical process that ensures careful and prudent commitment of money.
In his welcome address, National Coordinator, ISAN, Sunny Nwosu, said the aim of the conference was to evaluate the performance of the capital market and economy in general.
He said the association would continue to insist on a more dynamic market with the best Investor Protection Fund (IPF), noting that the association was committed to wealth creation and economic transformation.
He stated that well-managed capital market would assist in solving the nation’s infrastructure challenges.
Nwosu disclosed that ISAN would continue to pursue educational ventures to improve members’ understanding of the capital market for proper investment.
According to him, the commitment of the association over the years revolved around the need for shareholders, organised private sector and government to build an all-inclusive capital market driven by the Nigerian spirit.