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

…sees Faber’s visit unlocking capital for Nigeria

The Financial Reporting Council of Nigeria (FRC) has said that the unveiling of the Roadmap Report asserts Nigeria’s leadership role in the adoption of ISSB’s sustainability standards.

This is even as it noted that the visit of the chairman, International Sustainability Standard Board (ISSB), Emmanuel Faber and his team to Nigeria is not only a testament to Nigeria’s support to ISSB but also an encouragement to stakeholders.

“We hope that his visit to Nigeria really unlock capital for Nigeria and the entire continent of Africa,” said Rabiu Olowo, Executive Secretary/CEO, Financial Reporting Council of Nigeria.

He noted this during the regulatory roundtable on Friday at the Nigerian Exchange Limited (NGX) marking Faber’s visit. “The presence of such esteemed guests in our midst, underscores the importance Nigeria attaches in aligning with global frameworks especially corporate practices of which sustainability has become a critical component of corporate and general purpose financial reporting in today’s world,” he added.

The roadmap is a tool of mainstreaming the implementation of sustainability reporting in Nigeria in phases in the areas of reporting and assurance with timelines.

International Sustainability Standards Board (ISSB) launched its inaugural two sustainability standards, IFRS S1 (General Requirements for Disclosure of Sustainability-related Financial Information) and IFRS S2 (Climate Related Disclosures) in June 2023.

Secondly, the Financial Reporting Council of Nigeria (FRC) issued the exposure draft on the roadmap for sustainability reporting in Nigeria on February 1, 2024 which comment period ended on March 14, 2024.

“What is significant about this is that Nigeria has raised its hand in the world as a first adopter of sustainability standards in Africa and should be recognised as the first among countries in the global south to unlock investible finance in terms of foreign direct investment to enhance economic growth.

“Having gone this far, the Financial Reporting Council of Nigeria will not tolerate greenwashing in reporting sustainability by entities and will leverage on the efforts of ARWG members’ rich expertise to deliver topnotch regulatory supervision in the interests of the country,” Olowo noted further.

“Given the benefits of early adoption to the country, FRC on behalf of Nigeria, announced early adoption intent of ISSB sustainability standards. This has been widely acknowledged at international fora. Nigeria has become a good reference point in the globe as good practice to be emulated and we are happy to state that we are happy to showcase our adoption process.

“This underscores Financial Reporting Council of Nigeria’s drive for Nigeria to retain the fundamentals as the largest economy in Africa and Giant of Africa, the hub for investments destination, in the ongoing sustainability related developments,” Olowo said.

The meeting was strategic initiative of FRC in fostering a critical collaborative engagement with prime stakeholders in the corporate reporting world aimed at strengthening corporate reporting practices in Nigeria.

The FRC noted that the event is the third in the Nigeria’s sustainability journey and “also signifies a remarkable one as we are about to unveil the Roadmap for Sustainability Reporting in Nigeria”.

For the seamless implementation of sustainability reporting in Nigeria, the Council constituted Adoption Readiness Working Group (ARWG) for Sustainability Reporting in Nigeria inaugurated by the Permanent Secretary, Federal Ministry of Industry, Trade and Investment (FMITI), Evelyn Ngige, on June 6, 2023.

The members of ARWG comprise major stakeholders in the corporate reporting and corporate governance, with diverse backgrounds, chief executives, chief sustainability officers, auditors, representatives of financial institutions, regulators, investors, including the academia, working with FRC to map out strategy in readiness for the smooth implementation of the sustainability standards by ISSB in Nigeria as an early adopter of the standards.