The Financial Reporting Council (FRC) of Nigeria, together with the International Sustainability Standard Board (ISSB) and NGX Regulation Limited (NGX RegCo), recently launched the first two IFRS Sustainability Disclosure Standards (IFRS S1 and IFRS S2 Standards).
The aim of this initiative is to empower investors and stakeholders to make informed investment decisions and encourage companies to prioritize sustainability in their financial reporting.
Notably, Nigeria has become the first African nation to adopt these standards, joining major global financial centers such as New York, London, Frankfurt, Singapore, Santiago, and Montreal.
During the launch event held at the Nigerian Exchange Group house in Lagos, Shuaibu Adamu, the Executive Secretary of FRC, expressed his belief that this milestone signifies Nigeria’s firm dedication to responsible and sustainable business practices.
He emphasized that Nigeria’s adoption of these standards sets a significant example for other countries, solidifying its position as a global leader in sustainability reporting.
Adamu further highlighted the importance of attracting private investment capital, as there is currently a substantial global investor base of over $2 trillion in institutional funds with a focus on environmental, social, and governance (ESG) factors.
To attract this capital, countries and institutions must demonstrate their commitment to climate action and sustainable development.
In this regard, Nigeria, with NGX as a platform, can position itself to compete with other nations. By providing comprehensive, comparable, and transparent information about sustainability and climate-related risks and opportunities, Nigeria can effectively price these factors and encourage the flow of private capital that is crucial for sustainable development
