Nigeria has reaffirmed its leadership role in sustainability reporting by moving the focus beyond mere compliance to driving capital inflows and investor confidence.
Speaking at the 2nd Regulatory Roundtable on the Implementation of International Sustainability Standards Board (ISSB) Sustainability Reporting Standards in Abuja, Rabiu Olowo, Executive Secretary/Chief Executive Officer of the Financial Reporting Council of Nigeria (FRC), said the country’s strategy is clear, move beyond box-ticking and show how quality sustainability disclosures can strengthen investment decisions.
“Our gathering today is not simply about compliance; it is about collaboration, working together to ensure that Nigeria’s capital markets remain credible, that our businesses are globally competitive, and that our economy attracts sustainable investment while safeguarding the environment and society.
“Nigeria is focused on proving that sustainability reporting is not merely a regulatory cost but a strategic advantage that can open doors to capital and cheaper financing,” Olowo said.
Nigeria is the first African nation to formally adopt the ISSB’s standards, underscoring its ambition to shape industry-specific metrics that are globally comparable and competitive. The move is being driven in partnership with NGX Regulation Limited and the ISSB to accelerate awareness and adoption across sectors.
A roadmap released by the FRC outlines a phased implementation beginning with voluntary adoption by willing institutions and progressing to mandatory requirements for different categories of entities.
Already, early adopters such as Access Bank, Fidelity Bank, MTN Nigeria, and Seplat Energy have begun integrating the standards into their reporting frameworks.
Ndidi Nnoli-Edozien, a member of the International Sustainability Standards Board (ISSB), called on Nigerian regulators, banks, and corporate preparers to provide case studies that show how sustainability reporting has unlocked capital and reduced the cost of financing for businesses.
Nnoli-Edozien stressed that Nigeria must go beyond compliance with international standards to demonstrate tangible benefits of sustainability-related disclosures.
“We need to pull out the case studies of entities that have reported early where their successes are, and also where they’re struggling. More importantly, we need to share stories where sustainability has helped to unlock capital or reduce the cost of capital. Once we have those stories, it creates a pathway that the world can follow,” she said.
Nnoli-Edozien noted that sustainability-related disclosures are not merely about compliance, but about equipping companies with better information for decision-making and attracting investments. “Our objective is better information for better decisions and capital flows,” she explained.
She also pointed to critical areas where Nigeria must strengthen its sustainability reporting, including scenario analysis to anticipate climate risks such as flooding, and the development of locally relevant emissions data instead of relying on South African proxies.
“Capacity building is critical. Preparers must be enabled to understand, adopt, and own these disclosures if Nigeria is to continue leading the continent,” she added
Charles Anosike, Director-General and CEO of the Nigerian Meteorological Agency (NiMet), stressed the importance of climate data in strengthening sustainability reporting.
According to him one of the most fundamental challenges in sustainability reporting is the collection and verification of data. Anosike said that NiMet is committed to collaborating with the FRC and other organizations to ensure climate-related issues are integrated into corporate decision-making.
“In this era of climate change, sustainability reporting is evolving to encompass climate risk as a core element, demanding greater transparency and accountability from companies regarding their climate-related impacts and strategies…climate change poses both physical risks (e.g., extreme weather events) and transition risks (e.g., policy changes, technological shifts) that can significantly impact a company’s financial performance and long-term viability,”
