FRC, NGXReco Unveil Roadmap for Adoption of Sustainability Financial Reporting Standards in Nigeria

Kayode Tokede

The Financial Reporting Council of Nigeria (FRC) and the NGX Regulation Ltd (NGX RegCo, yesterday unveiled a roadmap for the adoption of the Sustainability Financial Reporting Standard in Nigeria.

Amid the launch of the financial reporting standards in Lagos, yesterday, Nigeria becomes the first country in Africa to launch the International Sustainability Standard Board (ISSB) sustainability financial reporting standard. The IFRS Sustainability Standards are developed to enhance investor-company dialogue.

This is to enable investors receive useful decision and globally comparable sustainability-related disclosures that meet their information needs.

The roadmap for the adoption of the reporting standard was launched at a session with the Chairman of ISSB/IFRS Foundation, Mr Emmanuel Faber, organised by FRC and NGX RegCo in Lagos.

Giving his speech, the Chief Executive Officer, FRC, Mr. Rabiu Olowo, stated that that the launch of the roadmap asserts Nigeria leadership role in the adoption of the ISSB’s sustainability standard.

Olowo, revealed that President Bola Tinubu during a visit of the ISSB’s team to him in Abuja earlier, expressed affirmation in his commitment for the adoption of ISSB’s proposition and framework for the sustainability standard in Nigeria.

He explained that the unveiling of the roadmap, was in line with ISSB’s launch of its two inaugural sustainability standards, namely; IFRS S1, for disclosure of sustainability related financial information and IFRS S2 for climate related disclosure in June 2023.

According to him, the FRC also issued the exposure draft on the roadmap for sustainability reporting in Nigeria on Feb.1, which period of exposure ended on March 14.

Olowo, said sustainability financial reporting standard unlocks capital flow, improve transparency across value chains, leading to greater and healthy competitiveness for companies.

He noted that the financial reporting standard also lead to increase Foreign Direct Investments(FDIs), portfolio investment, job creation, promote economic and social resilience, in line with the economic policies of the present government.

The FRC boss stated that the visit of Faber and his team to Nigeria underscores the importance Nigeria attaches in aligning with global framework, especially as it affects corporate practices, of which sustainability has become a critical component.

“This event is the third in Nigeria’s sustainability journey and signifies a remarkable one, following the unveiling of the roadmap for sustainability reporting in Nigeria.

“The visit of Emmanuel Faber and his team, is not only a testament to Nigeria’s support of the ISSB, but also an encouragement to all stakeholders.

“Nigeria has become a good reference point in the globe, which has a good practice to be emulated,” he said.

Olowo, appreciated the Adoption Readiness Working Group (ARWG) and other stakeholders for coming together to build the framework that would help the country unto its journey of sustainability financial reporting standard.