NEWSLETTER FROM THE STABLES OF CITM

WEEKLY PROFESSIONAL INTELLIGENCE BRIEFING (From the Stables of Chartered Institute of Treasury Management) CITM

Treasury Management, Accounting, Financial Reporting & Auditing

Edition: 001

Date: Friday, 6 November 2026

Reporting focus: Nigeria and relevant international developments

Coverage: Latest material developments available as at 6 November 2026.

This is the first edition, so there is no previous weekly issue for comparison. The briefing prioritises developments from late October and early November, alongside important standards and regulatory matters with approaching implementation dates.

PART A: NIGERIAN TREASURY MANAGEMENT & PUBLIC FINANCIAL MANAGEMENT

1. Federal Government seeks approval for $7.7 billion external borrowing

Publication date: 4 November 2026

President Bola Ahmed Tinubu has submitted a revised external borrowing proposal of approximately US$7.707 billion (₦10.79 trillion) for legislative approval to finance part of the 2026 Federal Government budget deficit.

The new request supersedes the earlier proposal for US$20.52 billion and €1.045 billion.

The proposed financing forms part of the ₦29.2 trillion new borrowing provision in the 2026 Appropriation Act, comprising:

• Domestic borrowing: ₦18.4 trillion.

• External borrowing: approximately ₦10.79 trillion.

The proposed external financing may involve Eurobonds, multilateral and bilateral facilities, commercial loans and other financing arrangements.

The Senate referred the request to its Committee on Local and Foreign Debts for further consideration. Consequently, the proposal should not yet be treated as an approved or completed borrowing transaction. The Cable

Sources:

• TheCable – Revised $7.7bn borrowing request

• Reuters – Nigeria's revised external borrowing proposal

Treasury Management implications

This development raises important questions about:

1. Public debt sustainability and debt-service obligations.

2. Foreign exchange exposure arising from external borrowing.

3. The cost comparison between domestic and external financing.

4. Debt maturity management and refinancing risks.

5. Project appraisal, disbursement controls and utilisation of borrowed funds.

Professional observation: Borrowing decisions should not be evaluated exclusively on the availability of funds. The projected economic returns, repayment capacity, currency exposure and cash-flow implications must be assessed before committing public resources.

For public institutions, this also reinforces the need for effective commitment controls and project-based treasury monitoring.

2. CBN withdraws approximately ₦3.46 trillion through OMO and Treasury Bills operations

Auction dates: 3–4 November 2026

The Central Bank of Nigeria conducted significant liquidity management operations through Open Market Operations (OMO), while the Treasury Bills auction was conducted on behalf of the Federal Government.

The combined allotments were approximately ₦3.46 trillion.

Instrument

Amount

CBN OMO allotment

₦2.95 trillion

Treasury Bills allotment

₦509.40 billion

Total allotments

₦3.46 trillion

The Treasury Bills auction attracted subscriptions of approximately ₦2.04 trillion against an offer of ₦800 billion.

Treasury Bills stop rates

Tenor

Stop rate

91 days

15.40%

182 days

15.79%

364 days

15.80%

The 364-day instrument attracted the strongest demand, with subscriptions of approximately ₦1.99 trillion.

Interestingly, average secondary-market Treasury Bills yields increased from 17.28% on 28 October to 17.70% on 3 November. FMDA

Source: Financial Markets Dealers Association – 4 November 2026 Auction Analysis

Professional implications

The divergence between primary-market stop rates and secondary-market yields deserves attention.

Treasury professionals should:

• Monitor the relationship between OMO and Treasury Bills yields.

• Evaluate investment maturities against projected cash requirements.

• Incorporate prevailing market rates into liquidity forecasts.

• Review counterparty and reinvestment risks.

• Distinguish quoted yields from actual investment returns after applicable costs and taxes.

Practical lesson: A treasury investment decision should be based on liquidity requirements, maturity matching, risk and net return, rather than headline interest rates alone.

3. OAGF and Treasury Administration

The Office of the Accountant-General of the Federation's website recorded the posting of Directorate Officers on 3 November 2026.

The latest listed circular relates to the accreditation and conduct of the 2026 promotion examination, dated 27 October 2026.

I did not identify a new material TSA policy, cash-management directive or federal treasury operating circular in this reporting scan. OAGF

Source: Office of the Accountant-General of the Federation

PART B: INTERNATIONAL ACCOUNTING STANDARDS & FINANCIAL REPORTING

4. IASB considers important changes to IAS 7 and IFRS 16

IASB meeting: 27–28 October 2026

Update published: Early November 2026

The International Accounting Standards Board considered several important financial reporting matters.

Two developments deserve particular attention.

A. IAS 7 – Statement of Cash Flows

The IASB tentatively decided to propose clarifications to paragraph 7 of IAS 7 concerning the definition of cash equivalents.

The proposal would clarify that an investment normally qualifies as a cash equivalent only when the entity has a right to obtain the cash flow from the investment within three months of its acquisition.

The entity must also consider all relevant contractual terms and conditions.

Why this matters:

This is particularly relevant to organisations that classify short-term investments, fixed deposits and money-market instruments as cash equivalents.

Accounting departments should ensure that their cash-equivalent classification policies consider:

• Original maturity at acquisition.

• Contractual withdrawal rights.

• Liquidity characteristics.

• Risk of changes in value.

• The other requirements in the definition of cash equivalents.

The proposal is still under consideration. It is not yet an amendment to IAS 7.

B. IFRS 16 – Leases

The IASB tentatively decided to propose additional disclosures requiring lessees to disclose:

1. Total cash outflows relating to lease payments.

2. Amounts classified as operating activities.

3. Amounts included in investing or financing activities.

4. A description of the types of payments involved.

This is important because lease transactions can create significant cash-flow obligations that are not always readily understood from the face of financial statements.

Practical implication: Organisations should review their lease accounting records and ensure that their accounting systems can separately identify lease-related cash movements.

No effective date has been established for these tentative proposals. IFRS Foundation

Official source: IASB Update – October 2026

5. IFRS for SMEs: IASB advances consolidation exception amendment

IASB meeting: 28 October 2026

The IASB has decided to proceed with a proposed amendment to the IFRS for SMEs Accounting Standard.

The proposal concerns eligible SME entities whose ultimate or intermediate parent measures its investment in those entities at fair value through profit or loss under IFRS 10.

The proposed amendment would provide a consolidation exception for qualifying entities.

Additional disclosures will identify:

• The fact that the exception has been applied.

• The name of the parent entity.

• The parent's principal place of business.

• Its country of incorporation, where different.

Effective date

The amendment is expected to be issued before the end of 2026 and will apply to reporting periods beginning on or after 1 January 2027.

Early application will be permitted where the entity also adopts the third edition of the IFRS for SMEs Accounting Standard early. IFRS Foundation

Professional implication:

Accountants working with SME groups should review their consolidation structures and identify whether this exception could apply.

Official source: IASB October 2026 meeting update

6. IFRIC clarifies reassessment of control under IFRS 10

Published: October 2026

The IFRS Interpretations Committee has finalised an agenda decision concerning reassessment of control under IFRS 10, Consolidated Financial Statements.

The matter concerns situations where an investee's governing document is amended in a manner that could change:

• The investee's relevant activities.

• The rights of the investor.

• The rights of other parties relating to those activities.

The Committee concluded that an investor should reassess whether it retains control in the circumstances described.

The IASB considered the decision in October 2026 and did not object. IFRS Foundation

Practical implication

Entities with subsidiaries, special-purpose vehicles, joint arrangements or other controlled structures should not assume that their original control assessment remains valid indefinitely.

Amendments to shareholders' agreements, constitutions, governance arrangements and decision-making rights may require reassessment.

Official source: IFRIC Update – September 2026 and October addendum

PART C: FINANCIAL STATEMENTS AUDIT & INTERNATIONAL AUDITING STANDARDS

7. IAASB proposes revisions to ISA 330, ISA 500 and ISA 520

Latest update: 26 October 2026

Consultation deadline: 15 December 2026

The International Auditing and Assurance Standards Board is consulting on proposed revisions to three fundamental auditing standards.

Standard

Subject

ISA 330

The Auditor's Responses to Assessed Risks

ISA 500

Audit Evidence

ISA 520

Analytical Procedures

The proposals seek to strengthen the relationship between assessed risks and audit procedures.

Principal areas of proposed improvement

ISA 500 – Audit Evidence

• More comprehensive guidance on audit evidence.

• Relevance and reliability of information.

• Consideration of digital information.

• Strengthening professional scepticism.

ISA 330 – Risk Responses

• Better alignment between identified risks and audit responses.

• More robust assessment of the sufficiency and appropriateness of audit evidence.

• Improved consistency in audit execution.

ISA 520 – Analytical Procedures

• Improved application of analytical procedures.

• Greater clarity on the auditor's evaluation of relationships and expectations.

• Better integration with the risk-based audit approach.

These are proposed revisions, not currently effective replacement requirements. The consultation closes on 15 December 2026. IAASB

Official sources:

• IAASB Consultation on ISA 330, ISA 500 and ISA 520

• IAASB Special Edition eNews, 26 October 2026

Recommendation for audit practitioners

This is an important consultation for audit firms.

Audit professionals should consider reviewing their existing audit methodologies, particularly:

• Audit risk assessment.

• Audit evidence documentation.

• External confirmations.

• Data analytics.

• Sampling methodologies.

• Substantive analytical procedures.

• Evaluation of electronically generated information.

It is also an opportunity for professional bodies and audit firms in Nigeria to contribute to the development of international auditing requirements.

8. IAASB releases its 2026 Handbook

Publication date: 30 September 2026

The IAASB has released the 2026 Handbook of International Quality Management, Auditing, Review, Sustainability and Other Assurance, and Related Services Pronouncements.

The handbook contains five volumes covering auditing, quality management, sustainability assurance, review engagements and other assurance services.

Of particular importance, it incorporates the following standards scheduled to become effective in December 2026:

Standard

Subject

ISA 240 (Revised)

Auditor's Responsibilities Relating to Fraud

ISA 570 (Revised 2024)

Going Concern

ISSA 5000

General Requirements for Sustainability Assurance Engagements

Why this matters

The revised fraud and going-concern standards deserve particular attention in audit planning and execution.

Audit firms should review their procedures for:

• Identifying and responding to fraud risks.

• Assessing management's going-concern evaluation.

• Evaluating supporting forecasts and assumptions.

• Assessing contradictory audit evidence.

• Documenting professional judgements.

Important: The IAASB's international effective dates should be considered alongside applicable Nigerian adoption and implementation directions.

Official source: 2026 IAASB Handbook

PART D: IMPORTANT FINANCIAL REPORTING IMPLEMENTATION WATCH

The following are not new developments this week, but they are sufficiently important to remain on the professional monitoring agenda.

9. IFRS 18 – Presentation and Disclosure in Financial Statements

Effective date: 1 January 2027

IFRS 18 replaces IAS 1, Presentation of Financial Statements.

Its major changes include:

1. Introduction of defined subtotals in the statement of profit or loss, including operating profit.

2. A new subtotal for profit before financing and income taxes.

3. Disclosure of management-defined performance measures.

4. Improved requirements for aggregation and disaggregation of financial information.

The standard is particularly important because it will affect the presentation of financial performance and comparability between companies.

Preparation requirements

Finance departments should begin reviewing:

• Existing financial statement formats.

• Chart of accounts.

• Income and expense classifications.

• Management reporting systems.

• Financial statement note disclosures.

• Comparative financial information.

IFRS 18 requires retrospective application, subject to its transition provisions. IFRS Foundation

Official source: IFRS 18 – Official Standard Overview

10. Third edition of IFRS for SMEs

Effective date: 1 January 2027

The third edition was issued in February 2025.

Important changes include revisions to:

• Concepts and pervasive principles.

• Consolidated and separate financial statements.

• Financial instruments.

• Fair value measurement.

• Business combinations and goodwill.

• Revenue recognition.

SMEs should begin preparing their accounting policies and reporting systems for the new requirements.

Early adoption is permitted. IFRS Foundation

Official source: IFRS for SMEs – Third Edition and Implementation Materials

PART E: REGULATORY AND PROFESSIONAL INSTITUTIONAL WATCH

Institution

Position from this week's scan

CBN

Significant liquidity management through OMO and Treasury Bills operations.

DMO

New external borrowing proposal under legislative consideration; domestic debt market activity continues.

OAGF

Routine administrative updates identified; no new material TSA policy circular identified.

NRS

No new material tax-policy announcement identified in this reporting window.

FRC Nigeria

No new material financial reporting or audit regulatory announcement identified.

ICAN

No new material standard-setting announcement identified.

ANAN

No new material standard-setting announcement identified.

IASB

October meeting decisions and financial reporting developments.

IFRIC

Finalised IFRS 10 agenda decision.

IAASB

Proposed revisions to three fundamental auditing standards and release of the 2026 Handbook.

These findings reflect the sources reviewed for this edition; they should not be interpreted as confirmation that no other institutional communications exist.

PART F: PROFESSIONAL ACTION POINTS FOR THE WEEK

I recommend that treasury managers, accountants and auditors pay particular attention to the following five matters.

No.

Area

Recommended professional action

1

Public debt management

Review the implications of Nigeria's revised external borrowing proposal, including currency and debt-service risks.

2

Treasury investment

Reassess liquidity forecasts and investment maturity matching against current OMO and Treasury Bills market conditions.

3

IFRS implementation

Begin IFRS 18 implementation planning ahead of the 2027 effective date.

4

Audit methodology

Review the proposed ISA 330, ISA 500 and ISA 520 revisions and consider contributing to the consultation.

5

Financial reporting

Review SME reporting policies and consolidation structures ahead of the third edition of IFRS for SMEs.

PART G: PROFESSIONAL DEVELOPMENT TOPIC OF THE WEEK

The Relationship Between Treasury Management, Financial Reporting and Financial Statements Audit

An important professional issue arising from this week's developments is the relationship between treasury operations, financial reporting and audit assurance.

Consider an organisation holding significant cash balances and short-term investments.

Three professional responsibilities arise:

1. Treasury Management

The treasury department must ensure that investments are properly authorised, liquid, secure and consistent with the organisation's cash-flow requirements.

2. Financial Reporting

The accounting department must determine whether the investments qualify as cash equivalents under IAS 7, how they should be measured and where they should be presented in the financial statements.

3. Financial Statements Audit

The external auditor must obtain sufficient appropriate audit evidence regarding:

• Existence of the investments.

• Rights and ownership.

• Valuation.

• Classification.

• Completeness of disclosures.

• Compliance with applicable accounting standards.

This illustrates why treasury management cannot operate independently of accounting and auditing.

My professional conclusion: Effective treasury governance provides the foundation for reliable financial reporting, while independent financial statements auditing provides assurance over the resulting financial information.

OVERALL WEEKLY ASSESSMENT

Three developments stand out this week:

First: Nigeria's revised US$7.7 billion external borrowing request reinforces the importance of debt management, funding strategy and public-sector treasury accountability.

Second: The IASB's deliberations on IAS 7 and IFRS 16 demonstrate the continuing importance of accurate cash-flow classification, lease disclosures and financial reporting transparency.

Third: The IAASB's proposed revisions to ISA 330, ISA 500 and ISA 520 indicate that the auditing profession is moving towards a more integrated, technology-aware and evidence-driven audit methodology.

These developments are relevant to the advancement of professional treasury management and the strengthening of accounting and auditing practice in Nigeria.

Next briefing: Friday, 13 November 2026.