December 22, 2023

Efficient organization, management, and administration of assets, investments, and wealth are paramount for individuals with substantial resources. Taking deliberate measures and employing unique strategies in this regard ensures the preservation and seamless transfer of accumulated wealth. Estate planning, a deliberate and intentional process, plays a crucial role in managing assets during one’s lifetime and beyond, including posthumously or in the event of incapacitation. Estate planning involves more than just the distribution of assets after death; it encompasses establishing mechanisms for continuous growth and achieving specific goals set by the estate owner. Wikipedia defines estate planning as the process of anticipating and arranging, during a person’s life, for the management and disposal of their estate in the event of incapacitation or death. This includes reducing uncertainties over estate administration, ensuring specific goals are met, such as funding successors’ education, supporting charitable causes, and preserving accumulated wealth. In Nigeria, the concept of estate planning is gaining prominence, with wealthy individuals and families increasingly adopting deliberate strategies for a seamless transition of wealth. This article aims to provide insights into the concept of estate planning, its methods and techniques, and key considerations. Conventional Methods Traditionally, the focus of patriarchs and matriarchs in estate planning in Nigeria has been narrow, often limited to the distribution of wealth after death. This approach may result from a lack of awareness of alternative structures that facilitate continuous wealth growth and ensure the legacy endures. Some conventional methods include: While these conventional methods are widely used, challenges such as disputes and misappropriation underscore the importance of exploring comprehensive and contemporary estate planning strategies. For professional advice on Accountancy, Transfer Pricing, Tax, Assurance, Outsourcing, online accounting support, Company Registration, and CAC matters, please contact Inner Konsult Ltd at www.innerkonsult.com at Lagos, Ogun state Nigeria offices, www.sunmoladavid.com. You can also reach us via WhatsApp at +2348038460036.

Over time, Nigeria has grappled with a significant public infrastructure deficit, estimated to require an annual investment of $100 to $150 billion for the next decade to bridge the gap. This deficit encompasses issues like inadequate road and railway networks, insufficient power generation and distribution systems, deteriorating educational and healthcare facilities, and aging airports. The insufficiency of key infrastructure has constrained Nigeria’s growth potential and global competitiveness, impacting economic activities adversely. Recognizing the urgency to address this challenge, the Central Bank of Nigeria (CBN) introduced the Infrastructure Corporation (InfraCorp) in October 2021, with approval from the President in February of the same year. Collaborating with the African Finance Corporation (AFC) and the Nigerian Sovereign Investment Authority (NSIA), the CBN seeded InfraCorp with ₦1 trillion, with plans for it to grow to ₦15 trillion in the coming years. This substantial funding is intended to be directed towards critical infrastructure projects. The Need for InfraCorp in Nigeria’s Infrastructure Development Traditionally, the government tackled infrastructure challenges through budgetary allocations, financed by revenue and supplemented by foreign and domestic debts. However, the reliance on debt has led to concerns about the sustainability of this approach, given the escalating debt profile and the associated servicing costs. In response, the government has explored alternative strategies, such as the Executive Order 007 on Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme, encouraging private sector participation. The National Integrated Infrastructure Master Plan (NIIMP), implemented over 23 years, projects a total investment of $2.3 trillion, with private and public sectors contributing $150 billion annually between 2021 and 2025. Notably, the energy and transportation sectors require over fifty percent of this investment, with the private sector expected to contribute 56%, and the public sector, 44%. InfraCorp’s creation aligns with the NIIMP, aiming to bridge the investment deficit in infrastructure. InfraCorp as a Corporate Entity: Prospects, Challenges, and Future Outlook The concept of a sovereign-backed infrastructure entity is not unique to Nigeria. In the United Kingdom, the Infrastructure and Projects Authority (IPA) operates as a government agency managing the delivery of infrastructure projects, often outsourced to private companies. In contrast, InfraCorp is established as a limited liability company under the Companies and Allied Matters Act, 2020 (CAMA), rather than being an agency with statutory backing. The prospects for InfraCorp are promising, as it addresses the need for alternative funding models and private sector involvement in infrastructure development. Challenges may include ensuring effective collaboration between public and private sectors, managing financial risks, and maintaining transparency in project execution. Looking ahead, the success of InfraCorp hinges on its ability to attract diverse funding sources, navigate regulatory complexities, and efficiently execute projects. Its role in Nigeria’s infrastructure development will be pivotal, potentially serving as a model for similar initiatives in other regions grappling with comparable challenges. For professional advice on Accountancy, Transfer Pricing, Tax, Assurance, Outsourcing, online accounting support, Company Registration, and CAC matters, please contact Inner Konsult Ltd at www.innerkonsult.com at Lagos, Ogun state Nigeria offices, www.sunmoladavid.com. You can also reach us via WhatsApp at +2348038460036.

Effective internal control is a critical aspect in modern organizations, gaining increased importance in the early 2000s, particularly in response to prominent accounting scandals in the United States. During this period, various guidelines, laws, and acts were enacted, such as the Sarbanes-Oxley Act of 2002 in the USA and the Security and Exchange Commission (SEC) guidance on Sections 60 – 63 of the Investment and Securities Act of 2007 in Nigeria. These regulations aim to safeguard investors from fraudulent financial reporting and enhance the accuracy of corporate disclosures. These laws have significantly influenced corporate governance codes, emphasizing that business managers are accountable for financial reporting and necessitating a systematic process known as internal control to ensure the attainment of set objectives. Internal control, broadly defined as a process managed by an entity’s board of directors, management, and personnel, offers reasonable assurance regarding operational, reporting, and compliance objectives. The success of an internal control system relies on the active participation of all employees within the organization. It is crucial to distinguish internal control from internal audit. While internal control refers to the organizational system designed to provide assurance on objectives, internal audit is an independent evaluation of internal control, including corporate governance and accounting processes. In establishing an effective internal control system, organizations should adhere to the Institute of Internal Auditors (IIA) Three Lines Model. The first line involves daily operational activities and risk and control procedures, the second line focuses on complementary activities related to risk, and the third line provides assurance to senior management. An effective internal control system within an organization offers several benefits: Section 61 of the Investment and Securities Act of 2007 underscores the importance of internal controls, placing the responsibility on the board of directors to establish and report on the effectiveness of the internal control system. Management plays a crucial role in this process, overseeing controls, reviewing their effectiveness, defining organizational objectives, and communicating these objectives clearly. Management must address key questions such as the organization’s purpose, the implementation of key controls, continuous improvement, task assignments, and reporting structures. This approach ensures a robust internal control system, fostering organizational growth and development. For professional advice on Accountancy, Transfer Pricing, Tax, Assurance, Outsourcing, online accounting support, Company Registration, and CAC matters, please contact Inner Konsult Ltd at www.innerkonsult.com at Lagos, Ogun state Nigeria offices, www.sunmoladavid.com. You can also reach us via WhatsApp at +2348038460036.