Stakeholders Seek Enhanced Auditors’ Involvement Amid Financial Disruptions

Critical stakeholders in the financial industry have highlighted the critical role of auditors in steering the Nigerian banking sector through an era of relentless financial disruptions.

This sentiment was echoed during the 60th Quarterly General Meeting of the Association of Chief Audit Executives of Banks in Nigeria (ACAEBIN), hosted by SunTrust Bank Nigeria Limited, on Thursday in Lagos. Themed “The Impacts of Financial Disruptions and the Role of Auditors,” the event underscored the challenges and opportunities shaping the industry.

The managing director/CEO of SunTrust Bank Nigeria Limited, Halima Buba, emphasised the multifaceted nature of disruptions in the financial industry, ranging from technological advancements, regulatory shifts, and socio-economic turbulence to climate change and emerging risks.

According to Buba, “Nigeria’s financial institutions are grappling with an unprecedented wave of disruptions, from technological innovations and regulatory complexities to socio-economic and environmental challenges. These issues pose significant risks to the stability and competitiveness of banks, demanding a proactive and strategic response.

“Key challenges include the rise of cyber threats like deep fakes and voice cloning, the operational pressures of conflicting regulatory demands such as Open Banking and anti-money laundering laws, and the far-reaching impacts of climate change on financial sustainability. Emerging technologies like blockchain and artificial intelligence further complicate the landscape, introducing both opportunities and operational risks.”

Amid these challenges, Buba, who was represented by the executive director, SunTrust Bank Nigeria Limited, Innocent Mbagwu, said auditors play an indispensable role in ensuring the resilience of the banking sector. “Beyond traditional financial assessments, auditors now function as strategic partners, advising on risk management, governance, and sustainable practices.

They are at the forefront of integrating advanced technologies, ensuring ethical AI use, and navigating emerging frameworks like sustainability accounting and blockchain”, she averred.

Buba therefore underscored the evolving responsibilities of auditors in safeguarding the integrity of Nigeria’s banking sector, calling for enhanced collaboration among stakeholders to ensure the financial ecosystem’s stability and sustainability.

In his welcome address, chairman of ACAEBIN, Prince Akamadu, described the gathering as a significant milestone for the association, serving as both the final meeting of the year and an opportunity to reflect on collective achievements and future aspirations. He emphasized the importance of auditors in navigating financial disruptions, ranging from technological innovations to economic uncertainties, and called for actionable insights to strengthen their role as custodians of financial accountability.

Reflecting on ACAEBIN’s accomplishments in 2024, the Chairman, who was represented by the first vice chairman, ACAEBIN, Aina Amah, highlighted the success of key initiatives, including the Annual General Meeting in Abuja, which focused on the role of internal auditors in promoting financial stability and economic growth.

He also commended the impactful discussions during the 59th QGM in Lagos, which addressed the challenges of being a human auditor in a dynamic environment and training programs that enhanced internal controls and compliance.

Looking ahead to 2025, Akamadu outlined ambitious plans to elevate the association’s impact, including training in Mauritius to provide members with global exposure; a revised training structure to address emerging trends, and the development of a universal audit program tailored to the banking industry. He reaffirmed ACAEBIN’s dedication to continuous capacity building, ensuring auditors are equipped with skills in emerging technologies, regulatory compliance, and governance.