By Aduragbemi Omiyale
The Financial Reporting Council of Nigeria (FRCN) has been commended for its pioneering role in advancing sustainability reporting standards across the African continent.
This applause was given by the chief executive of the Nigerian Exchange (NGX) Regulation Limited (NGX RegCo), Mr Olufemi Shobanjo, at the Regulatory Roundtable for Sustainability Reporting in Nigeria, hosted by FRCN recently in Abuja,
Mr Shobanjo remarked that the FRCN “has demonstrated remarkable foresight and commitment to corporate transparency and sustainable business practices.”
“By taking this bold step, the FRCN has not only positioned Nigeria as a leader in corporate reporting but has also set a benchmark for other African nations to follow,” he further said.
Mr Shobanjo highlighted some significant developments, including NGX RegCo’s collaboration with the International Sustainability Standards Board (ISSB) and FRCN to assess the readiness of listed companies and the rollout of a phased roadmap for standard adoption set for March 2024.
He noted that companies such as Seplat Energy and MTN Nigeria have already integrated these standards into their financial reporting.
“This roundtable is designed to equip stakeholders with a comprehensive understanding of the roadmap and compliance requirements, fostering transparency and sustainability,” Mr Shobanjo said, encouraging attendees to use the insights from the event to effectively navigate the new reporting standards.
He concluded with NGX RegCo reaffirming its commitment to support the FRCN and other regulatory bodies in the ongoing implementation and refinement of these sustainability reporting standards.
Recall that in June 2023, Nigeria became the first African nation to adopt standards, leading to the introduction of IFRS S1 and S2, which focus on sustainability and climate disclosures.
The potential long-term benefits of this adoption include increased investor confidence, improved corporate governance, and enhanced comparability of sustainability information across different markets.