The profession of Accountancy enjoys a high degree of respect in Nigeria with chartered accountants being key in the nation’s economic progress. As a nation with a developing economy, the accounting industry in Nigeria continues to expand and in turn, will require a lot of professionals.
In this article, we provide a breakdown of chartered accountant salary trends in Nigeria today, along with some expected statistics and related trends.
Also see: Senior Accountant Job Description (Skills, Qualifications, Responsibilities)
The Role of a Chartered Accountant in Nigeria
It is important, however, to appreciate the position of chartered accountants at this stage before we get to the statistics.
Chartered accountants are professionals with certifications who have studied and worked within the fields of accounting and finance, having met certain standards through certain credentialing examinations.
They perform the following tasks:
- Financial reporting: Preparing and presenting the financial statements to the stakeholders in an accurate and timely manner.
- Auditing: Review of the accounts to ascertain compliance with accounting rules and stipulations.
- Tax: Engaging in and offering tax-related services, tax advice and planning practice, and tax education to people and other firms.
- Management accounting: Helping institutions make better decisions regarding their finances.
- Consultancy: Rendering assistance to enhance the financial operations of the institutions.
Current Salary Trends for Chartered Accountants in Nigeria
The average salary range of Chartered Accountants in Nigeria is between ₦2,000,000 and ₦3,500,000 per annum and according to the Jobberman salary survey conducted in 2023, there are several factors taken into consideration. More specifically:
Average Salary Of Chartered Accountants Based On Experienced Level
The data below illustrates a progressive increase in salaries as professionals gain experience and expertise in the field.
- Entry-Level Chartered Accountants: ₦1,500,000 to ₦2,000,000 per annum.
- Mid-Level Chartered Accountants: ₦2,500,000 to ₦4,500,000 per annum.
- Senior Chartered Accountants/Managers: ₦5,000,000 to ₦8,000,000 per annum.
- Directors and Partners in Firms: ₦10,000,000 and above.
Salary Of Chartered Accountants By Region
In Nigeria, salaries for Chartered Accountants also tend to fluctuate with different locations. Below is a summary of average salaries in some major cities in a tabular form:
| CITY | AVERAGE SALARY (₦) |
| Lagos | 3,500,000 – 6,000,000 |
| Abuja | 3,000,000 – 5,500,000 |
| Port Harcourt | 2,500,000 – 4,000,000 |
| Benin City | 2,200,000 – 4,000,000 |
| Ibadan | 2,000,000 – 3,500,000 |
| Kano | 1,800,000 – 3,000,000 |
| Asaba | 2,500,000 – 4,000,000 |
From the table above, we can see that Lagos, being the financial capital, tends to offer the highest salaries, followed by Abuja.
Industry-Specific Salaries Of Chartered Accountants
The industry in which a chartered accountant works can also impact their salary. For example:
| INDUSTRY | AVERAGE SALARY |
| Banking and Finance | ₦3.5 million – ₦8 million |
| Oil and Gas | ₦4 million – ₦12 million |
| Manufacturing | ₦2.5 million – ₦6 million |
| Government | ₦1.8 million – ₦4 million |
| IT | ₦3.5 million – ₦8 million |
| FMCG | ₦2.5 million – ₦6 million |
Additional Benefits and Perks
Along with attractive salaries, a typical chartered accountant in Nigeria enjoys a higher level of benefits and perks such as:
- Health insurance: Provision of inclusive medical care for them and members of their families.
- Retirement plans: Making payments toward requisite pension scheme provisions that ultimately ensures security when retired.
- Bonuses: Extra cash offered as an appreciation for good performance.
- Professional development: Exposure to training and retraining that advances one’s professional skills.
- Flexible working arrangements: Possibility to work from home or adjust working hours to accommodate personal commitments.
Factors Influencing Chartered Accountant Salaries
Qualifications and Certifications
Earning potential for a chartered accountant can be significantly impacted by his or her respective qualifications and certifications.
There are those professionals who have acquired further certifications such as the Association of Chartered Certified Accountants or Certified Public Accountant designation are likely to earn higher salaries owing to their advanced qualifications.
Experience
Experience is an important aspect that determines the salary of a chartered accountant in the industry.
For the professionals with a high number of years of practice, their salary level is likely to be higher whenever compared to those with low practicing experience in their profession.
Location
Another factor that accounts for variations in salary is geographic location. Salaried chartered accountants in big cities such as Lagos, Abuja, and Port Harcourt earn higher salaries than their counterparts in smaller towns or rural regions.
Employer
The other factor that may account for a variation in a chartered accountant’s salary is the level of ‘her’ employer.
Higher payment packages are mainly offered by big multinational companies and corporations compared to smaller local companies.
Furthermore, employment in notable organizations will add value to an individual’s career thus creating opportunities.
Gender Pay Gap in Chartered Accountancy
The gender pay gap in chartered accountancy as well as in many other professions is becoming more and more disturbing across the globe including Nigeria. Although it is undoubtedly competing in the professional environment, the problem of variation in payment remains.
A research that was done by Jobberman regarding the salaries of chartered accountants in Nigeria indicated that male practitioners still have a slight edge over females when it comes to salaries.
Professional bodies and organizations are taking steps to bridge this gap and ensure that “Equal pay for equal work” is promoted.
Statistical Data
- There are 3,90,000 Chartered Accountants in Nigeria according to data from Wikipedia.
- Jonathan Adewale Ojo Inetimi, AAT, ACA is a Nigerian who was the youngest ICAN holder. He is the youngest Candidate to have completed all the levels of The Institute of Chartered Accountants of Nigeria Professional examinations.
- The Average Chartered Accountant Salary in Nigeria is ₦2,200,000 per yearaccording to Payscale
Career Growth and Opportunities for Chartered Accountants
The career growth potential for Chartered Accountants in Nigeria is substantial. With experience and additional certifications,
CAs can advance to senior roles such as:
- Chief Financial Officer (CFO): ₦18,000,000 – ₦36,000,000 per annum
- Finance Director: ₦15,000,000 – ₦30,000,000 per annum
- Audit Partner: ₦12,000,000 – ₦24,000,000 per annum
These roles come with increased responsibilities and significantly higher salaries.
Future Outlook for Chartered Accountant Salaries in Nigeria
The prospects of salary packages for chartered accountants in Nigeria looking forward appear very lucrative. Some reasons account for this optimism:
Economic Stability:
It is important to note that the economy of Nigeria is expected to improve hence there will be more need for financial services and expertise.
Technological Growth:
Adoption of advanced technologies like AI and Use of blockchain in the accounting process will bring about the demand for talented professionals who will value these technologies and implement them.
Changes in legislation:
The constantly changing local market and elaborate procedures for establishing a firm will create demand for chartered accountants helping attach and control the finances.
Globalization:
In Nigeria, there is considerable globalization of business activities, making it possible for employers of chartered accountants to expose them to international assignments with better remuneration.
Conclusion
Chartered accountant salary in Nigeria generally depends on factors like experience, qualifications, industry, location, and the employer.
For those aspiring to become chartered accountants, continuous professional development as well as corresponding certifications help to earn more and also widen the scope of work available to them.
Lots of opportunities are also becoming available as the need for financial skills keeps getting on the rise and the outlook for chartered accountants in Nigeria also appears quite optimistic.