Economic Stabilisation Still Fragile, ICAN Warns

Nigeria’s economy is beginning to show signs of stabilisation, though the recovery remains delicate, the Institute of Chartered Accountants of Nigeria (ICAN) said on Wednesday, stressing that accountability will be essential to sustaining fiscal reforms and driving long-term national development. The remarks were made at ICAN’s 2026 Economic Outlook, organised as part of its 60th anniversary celebrations in Lagos. The event convened policymakers, industry leaders, regulators, and professionals to discuss how transparency, sound institutions, and fiscal discipline can support sustainable economic growth. ICAN President and Chairman of Council, Mallam Haruna Yahaya, described the forum as both a moment of reflection and a platform for proposing practical solutions to Nigeria’s economic challenges. He noted that the outlook held particular significance as the institute marked six decades of existence, emphasising that ICAN was focused on the future rather than past achievements. According to Yahaya, accountability goes beyond governance ideals and is a core economic requirement, adding that countries with strong institutions, effective oversight, and transparent systems tend to outperform those constrained by weak governance. Yahaya explained that Nigeria’s economy showed signs of stabilisation in 2025, with real GDP growth exceeding four per cent in the second quarter, supported by improvements in manufacturing, trade, and services. He added that inflation, while still high, eased towards the mid-14 per cent range by the end of the year due to tighter monetary policy and improved supply conditions. He further noted that external buffers improved as foreign exchange reserves climbed to multi-year highs, driven by stronger exports and reforms in the foreign exchange market. Trade and current account balances also returned to surplus. Citing Purchasing Managers’ Index data of 57.6 points, Yahaya said business confidence had strengthened but cautioned that the gains remain fragile and must be protected through discipline, transparency, and accountability. Also speaking, ICAN Vice President and Chairperson of the 60th Anniversary Planning Committee, Hajia Queensley Seghosime, welcomed participants and highlighted the relevance of the Economic Outlook amid ongoing fiscal and economic reforms. She pointed to revenue mobilisation, tax restructuring, and improvements in public financial management as key pillars for achieving macroeconomic stability and inclusive growth. Seghosime said accountability is central to the credibility of fiscal reforms, ensuring that tax policies deliver tangible public value, public resources are efficiently utilised, and public trust in economic governance is restored. She warned that without accountability, reforms lose legitimacy, but with it, reforms can be sustained. Chairman of the session and Chairman of Alpine Investment Service Limited, Mohammed Hayatu-Deen, drew attention to the disconnect between macroeconomic stabilisation and everyday economic realities. He observed that despite moderating inflation, growth remains uneven, real incomes are only gradually recovering, and poverty and inequality persist. He questioned whether stability can be sustained and translated into outcomes that citizens can feel, stressing that effective execution is crucial. According to him, accountability determines whether budgets are realistic, revenues are properly collected, and debt levels remain manageable. Discussions at the forum also focused on tax reforms introduced in 2025, which were described as a major structural shift. Participants agreed that while the new laws signal improved transparency and rule-based governance, their success will depend on institutional capacity, professional competence, and compliance. ICAN used the occasion to highlight the changing role of accountants in Nigeria’s economy, noting that modern accountants now serve as custodians of fiscal credibility, governance, and sustainability, with responsibilities extending to digital systems, ESG compliance, and risk management. The Economic Outlook featured panellists including Dr Abiodun Adedipe, Dr Chinyere Almona, FCA, Abimbola Ogundare, FCA, and Segun Ajayi-Kadir, alongside keynote speaker Prof Taiwo Oyedele, FCA. Discussions focused on practical approaches to strengthening governance, improving accountability, and ensuring that economic reforms produce measurable results. Closing the session, Yahaya urged participants to engage actively, contribute bold ideas, and uphold transparency and accountability as Nigeria enters a critical phase of economic transformation. He said ICAN’s role goes beyond rhetoric, emphasising measurement, disclosure, and professional integrity, adding that accountability will remain central to both national prosperity and the institute’s continued relevance.