The Financial Reporting Council of Nigeria (FRC) says the country is strengthening investor confidence in its capital market through sustainability reporting, moving beyond a narrow focus on regulatory compliance to creating avenues for capital inflows.
Speaking at the second Regulatory Roundtable on the implementation of International Sustainability Standards Board (ISSB) sustainability reporting standards in Abuja, the Executive Secretary and Chief Executive Officer of the FRC, Rabiu Olowo, explained that Nigeria’s strategy is to demonstrate how quality disclosures can support better investment decisions.
Nigeria became the first African country to adopt the ISSB’s standards in 2024, a move that underscores its ambition to align local reporting with global benchmarks. The adoption, being implemented in partnership with NGX Regulation Limited and the ISSB, is structured to begin with voluntary participation before gradually becoming mandatory across various sectors. Some early adopters already include Access Bank, Fidelity Bank, MTN Nigeria, and Seplat Energy.
Olowo described the progress as a sign that sustainability reporting in Nigeria is becoming a model for Africa. According to him, the reforms are beginning to reflect positively in both the capital and bond markets, reinforcing the administration’s broader economic goals. He stressed that the council’s focus is not only on compliance but also on ensuring that Nigerian businesses remain globally competitive while attracting sustainable investment.
He also noted that the ISSB is considering amendments to its reporting requirements in response to industry concerns, particularly around complex disclosures such as Scope 3 Category 15 emissions. Proposed changes, he said, are aimed at easing the reporting burden for institutions while maintaining transparency for investors.
Other speakers at the event, including ISSB member Ndidi Nnoli-Edozien, emphasized the need for Nigeria to demonstrate tangible benefits from sustainability reporting, such as unlocking capital and reducing the cost of financing. She highlighted the importance of sharing case studies from early adopters to showcase both successes and challenges, while also stressing the need for locally relevant climate data.
Similarly, the Director-General of the Nigerian Meteorological Agency, Charles Anosike, underscored the role of accurate data in strengthening corporate disclosures. He noted that effective sustainability reporting requires integrating climate risk into decision-making, given the growing threats from extreme weather events and policy changes linked to climate change.
Through these ongoing efforts, Nigeria is seeking to position itself as a leader in sustainability reporting, using global standards not only as a compliance tool but also as a lever for competitiveness and investment growth.
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