FRC calls on business leaders to make sustainability reporting a boardroom priority

The Financial Reporting Council (FRC) of Nigeria has urged business leaders to make sustainability reporting a strategic boardroom priority, stressing that organisations that embrace transparent environmental, social and governance (ESG) disclosures will be better positioned to attract investment, access finance and remain competitive in the global economy.

Rabiu Olowo, Executive Secretary and Chief Executive Officer of the FRC, who was represented by Abubakar Rasaq, Head of the Sustainability Reporting Regulations Department, made this call on Monday in Abuja at the 5th Annual Nigeria Employers’ Summit organised by the Nigeria Employers’ Consultative Association (NECA).

Speaking on the theme, “Mandatory Sustainability Reporting: A Catalyst for Competitiveness, Access to Finance and Sustainable Growth in Nigeria,” Olowo said sustainability reporting had evolved beyond a regulatory requirement to become a critical business tool for long-term value creation and resilience.

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He noted that investors, lenders, customers and employees increasingly demand greater transparency on how organisations manage environmental, social, governance and climate-related risks, making sustainability disclosures essential for building trust and confidence.

“A few years ago, businesses were assessed primarily on their financial performance. Today, investors and other stakeholders want to know not only how much profit a company makes, but how sustainable that profit is

“They want to know how organisations manage risk, respond to emerging challenges, govern their operations and create value over the long term. In many respects, trust has become one of the most valuable assets any organisation can possess. And trust today is increasingly built on transparency.

“This shift is being driven by several factors, including climate change, technological disruption, demographic changes, evolving consumer expectations and growing demand for corporate accountability,” he said.

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According to him, sustainability reporting enables organisations to better understand and manage risks while providing investors and financiers with the information needed to make informed decisions.

He added that global capital was increasingly flowing towards companies that demonstrate transparency, resilience and responsible business practices, making sustainability reporting a common language across international markets.

Olowo said Nigerian businesses seeking foreign investment, international financing or participation in global supply chains would increasingly need credible sustainability disclosures to remain competitive.

He warned that companies delaying preparations until reporting becomes mandatory could struggle to meet evolving global expectations.

“The organisations that prepare early will have more time to build capacity, strengthen systems and position themselves competitively. Those that wait until reporting becomes mandatory may find themselves playing catch-up,” he said.