Accountants play a crucial role in managing finances and ensuring financial compliance for businesses and organizations in Nigeria. As the economy evolves, so does the compensation for professionals in the field. In this article, we explore the expected salaries of accountants in Nigeria for the year 2023, shedding light on the factors influencing their earnings and providing valuable insights for aspiring accountants and employers.
Simply said, accounting is the activity of maintaining financial records for businesses, organisations, and any other setting where accountants are needed. Being an accountant has certain benefits, one of which is that you may work nearly anywhere because almost every business needs your skills. Microeconomic activities and other subsystems connected to economic decisions and actions may be included in accounting. Government accounting, auditing and taxes, company accounting, and social accounting—which support capital creation, economic planning, and other social and economic activities—are the primary areas of accounting that we have highlighted.
The requirement for the development of a system for documenting financial transactions led to the development of accounting or accountancy. Accounting was crucial in the past for asset management, tax collection, trade documentation, production management, and doing business. Increases in capital, expanded commerce, and industry made financial oversight necessary. Having said that, accounting is a deliberate choice to maintain financial records of a business or organisation, and how it impacts the economy as a whole.
How Much do Accountants Make in Nigeria?
Experience is a crucial aspect that impacts an employee’s compensation over time for any position in the nation, and accountants are not an exception. Entry-level employees who are just starting their accounting careers are paid less than more seasoned professionals, but as these entry-level accountants gain experience on the job, their compensation packages rise.These wages, which include allowances and incentives, vary from 140 000 to 400 000 or more. There are several varieties of accountants, and each type is compensated according to the duties and responsibilities assigned to them. We will examine the monthly take-home income of each of these accountants as we proceed down.
In Nigeria, entry-level accountants often make between $40,000 and $130,000 a month. As accountants obtain more professional certificates, their pay scale rises, which makes it easier for them to advance in their careers. In Nigeria, chartered accountants make close to or more than 300,000 each month. These wages, which include allowances and incentives, vary from 140 000 to 400 000 or more. There are several varieties of accountants, and each type is compensated according to the duties and responsibilities assigned to them. We will examine the monthly take-home income of each of these accountants as we proceed down.
1. Financial analyst: In Nigeria, financial analysts who are accountants often make between 190,000 and 250,000 Naira per month or more in 2023. These accountants, as their name suggests, assist in evaluating the financial standing of a company or asset to decide whether it is a wise investment. They assist a corporation or organisation in performing budgeting variance and forecasts, creating balance sheets, and predicting the results of corporate financial investments.
2. Auditors: The typical monthly take home compensation for auditors in Nigeria now ranges from roughly 150,000 to 190,000 Naira per month in 2023, and their pay is subject to fluctuation. Auditors create and review financial records for companies that use their services. They also guarantee the accuracy of financial records and timely and precise payment of taxes. Auditors evaluate financial processes and try to make sure that businesses are managed successfully and effectively.
3. Financial Accountants: Financial accountants in the nation may expect to make anything from 150,000 to 300,000 each month. A financial accountant’s duties may also involve creating financial statements, analysing internal controls, including risk assessments and evaluations of risk areas, and reconciling sub-ledger to general ledger account balances, to name a few.
4. Cost Accountant: The monthly pay for cost accountants in Nigeria is from 200,000 to 250,000. Using techniques for identifying, classifying, allocating, aggregating, and reporting such costs as well as comparing them to standard costs, their job involves recording and reporting measurements of the cost of producing goods and providing services in both the aggregate and in detail.
5. Business Analyst: In addition to creating detailed business analyses, outlining business problems, opportunities, and solutions, budgeting and forecasting, planning and monitoring, financial modelling, variance analysis, pricing, reporting, and defining business requirements and communicating them to stakeholders, business analysts are compensated with salaries in the range of approximately 130,000 to 170,000 or more per month.
6. Chartered Accountant: A chartered accountant is someone who, after graduating from college and obtaining professional credentials like the ICAN or ACCA, has attended professional training. Achieving these top qualifications enables an accountant to use the term “chartered” and exposes them to privileges and professional heights that are not generally available to regular or ordinary accountants.
Chartered accountants make an average monthly compensation between the range of 250,000 to 350,000 naira, however this is also subject to fluctuation. They also make more money than regular graduate accountants.
7. Forensic Accountant: The investigators of the accounting world are forensic accountants. They are professionals at analysing financial statements to look for any indications of fraud, embezzlement, or other dubious company practises. They are typically used to support legal or judicial processes.
These specialised accountants are pros at closely examining data for any indication of wrongdoing and producing thorough reports on the subject. They receive about NGN 175,000 every month.
8. Actuarial Accountant: Actuarial accountants are experts in examining data to evaluate hazards. They evaluate the risks associated with a certain course of action using previous financial data, sales forecasts, and current economic trends. They provide extensive risk analyses prior to any significant initiative, which aids businesses in making wise financial decisions.Their annual compensation averages over NGN 1 million.
9. Chief Financial Officer: The senior executive officer in charge of managing a company’s financial operations is known as the CFO. They oversee cash flow and investments, review financial data, and make wise financial judgements that are in the best interests of the business. They develop business ideas that will increase revenue and guarantee the organization’s financial expansion. They often make NGN 800,000 every month.
For many people, accounting is a demanding yet rewarding profession. One may start their career in accounting and find a meaningful job with the correct abilities, network, and specialisation. Upskilling is one of the finest methods to grow in any field, including accounting. This results in promotions with increased duties that are appropriate for your degree of expertise and, of course, more remuneration. The greatest way to do this is through further education.