The NGX Regulation Ltd. (NGX RegCo), the regulatory body of the Nigerian Exchange Group, and the Financial Reporting Council of Nigeria (FRCN) have officially launched the roadmap for the adoption of the Sustainability Financial Reporting Standard in Nigeria.
The launch took place during a regulatory roundtable event on Friday, coinciding with the visit of Emmanuel Faber, Chair of the International Sustainability Standards Board (ISSB), and his team to the Exchange.
In his address, Femi Shobanjo, the Chief Executive Officer of NGX RegCo, praised the efforts of the ISSB, led by Faber, in ensuring the successful adoption of the Sustainability Financial Reporting Standard in Nigeria.
He described the event as a historic moment that marks a new chapter in Nigeria’s sustainability journey.
Shobanjo expressed confidence that all stakeholders in the financial market would uphold good Corporate Governance Practices and adhere to the regulations set forth by NGX and other relevant laws in the country.
He emphasized NGX RegCo’s commitment to promoting a fair, transparent, and orderly market that relies on comprehensive and timely information disclosure to operate efficiently.
As a subsidiary of NGX Group, NGX RegCo has a long-standing dedication to driving sustainability initiatives and collaborating with both domestic and international organizations to support the implementation of robust sustainability programs.
Rabiu Olowo, the Chief Executive Officer of FRCN, highlighted Nigeria’s leadership role in adopting the ISSB’s sustainability standard. He mentioned President Bola Tinubu’s commitment to adopting the ISSB’s framework for sustainability reporting in Nigeria during a meeting with the ISSB team in Abuja.
Olowo explained that the roadmap launch aligns with the ISSB’s introduction of two inaugural sustainability standards in June 2023, focusing on disclosure of sustainability-related financial information and climate-related disclosure.
The FRCN issued an exposure draft on the sustainability reporting roadmap in Nigeria, emphasizing the benefits of the financial reporting standard in unlocking capital flows, enhancing transparency, and promoting competitiveness and economic resilience.
Faber commended the collaborative efforts of FRCN, NGX RegCo, and other stakeholders in developing the adoption roadmap for the Sustainability Financial Reporting Standard in Nigeria.
He stressed the importance of incorporating sustainability standards into financial reporting to address climate change and transition risks, essential for businesses and nations.
Faber emphasized that financial reporting should not be limited to accounting alone but should also consider long-term assets, human capital, and other aspects of economic and business resilience covered by sustainability standards.
He pledged full support from ISSB to assist Nigeria in implementing the sustainability standard roadmap to build resilient business models and ensure economic stability.
The launch of the roadmap signifies progress in Nigeria’s sustainability journey and aims to address the adoption of sustainability disclosure standards, strategic developments in sustainability reporting, and the importance of these standards in attracting investors and unlocking capital flows into Africa.
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