• Monday, May 27, 2024
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FRC reaffirms commitment to global standards to boost investor confidence

FRC says Roadmap Report confirms Nigeria’s leadership role in adopting ISSB’s sustainability standards

By Favour Okpale

The Financial Reporting Council (FRC) of Nigeria has reaffirmed its commitment to adopting and implementing global valuation standards to bolster investor confidence and enhance the country’s competitiveness on the international stage.

Rabiu Olowo, executive secretary and chief executive officer of FRC, made this known during a courtesy visit of Nicholas Talbot, CEO of International Valuation Standard Council (IVSC) to the council in Abuja.

The FRC boss who highlighted the importance of aligning Nigeria’s valuation standards with global best practices, emphasised the role of valuation professionals in upholding financial integrity.

He said the council’s dedication to this endeavor stems from its recognition of the crucial link between credible financial reporting, investor confidence, and the nation’s economic growth goals.

“So for us, it’s at the core of our mandate and we’re very excited to have them here. You know, the work that valuation professionals do, it’s significant to the economy, whether you have a valuation of assets, receivables, or anything of its kind, you find that it’s key to every financial reporting principle and also the governance process,” he added.

“So at the end of the day, once investors have confidence in the business that we do here and how we value our balance sheet, it will promote that confidence. And at the end of the day, it’s going to have a catalytic effect on the economy. And our hopes of achieving the $1 trillion economy will only be a matter of time.”

Olowo noted that the establishment of a directorate of valuation standards in the council was aimed at ensuring that Nigerian businesses adhere to international benchmarks for transparent reporting.

The move, according to him, not only showcases the FRC’s commitment to governance principles but also signals its intent to attract cross-border investors by fostering trust through credible financial reporting.

In his remarks, Talbot of IVSC commended the FRC for the establishment of a Directorate of Valuation standards for credible financial reporting which would boost investor confidence in driving economic growth towards Nigeria’s $1 trillion economy goal.

He added that what investors look for, whether they’re domestic investors or international investors, is confidence. And key to confidence is having a stable financial system.

“The key to investors’ confidence is having a stable financial system but also an approach where you understand it from an external investor point of view. Imagine a world where there were 195 different approaches to valuation.”