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The Financial Reporting Council of Nigeria (FRCN) supported by NGX Regulation Limited (NGX RegCo) launched the roadmap for the adoption of the Sustainability Financial Reporting Standard in Nigeria.
Consequently, Nigeria becomes the first country in Africa to launch the International Sustainability Standard Board (ISSB) sustainability financial reporting standard. The roadmap for the adoption of the reporting standard was launched at a session with the chairman of ISSB/IFRS Foundation, Mr. Emmanuel Faber, organised by FRCN and NGX RegCo in Lagos.
Speaking, the chief executive officer, FRCN, Mr. Rabiu Olowo said, the launch of the roadmap asserts Nigeria leadership role in the adoption of the ISSB’s sustainability standard. Olowo revealed that President Bola Tinubu, during a visit of the ISSB’s team to him in Abuja earlier, expressed affirmation in his commitment for the adoption of ISSB’s proposition and framework for the sustainability standard in Nigeria.
He explained that the unveiling of the roadmap, is in line with ISSB’s launch of its two inaugural sustainability standards, namely; IFRS S1, for disclosure of sustainability related financial information and IFRS S2 for climate related disclosure in June 2023. Olowo said, sustainability financial reporting standard unlocks capital flow, improve transparency across value chains, leading to greater and healthy competitiveness for companies.
He noted that, the financial reporting standard also lead to increase Foreign Direct Investments (FDIs), portfolio investment, job creation, promote economic and social resilience, in line with the economic policies of the present government.
The FRCN boss said the visit of Faber to Nigeria underscores the importance Nigeria attaches in aligning with global framework, especially as it affects corporate practices, of which sustainability has become a critical component.
The chairman of ISSB, Mr. Emmanuel Faber stated that, financial reporting must encompass sustainability standard which addresses climate change and transition risk, which is inevitable for businesses and nation.
He further said the ISSB sustainability financial reporting standard would help Nigeria community and corporations to becoming the most transparent and credible in supply chains and before investors, using appropriate metrics. Faber pledged that the ISSB would fully support Nigeria in the implementation of the roadmap of the sustainability standard to build business model for a more resilient and economic stability.
Also, the chief executive officer, NGX RegCo, Mr. Femi Shobanjo expressed optimism that all financial market stakeholders would remain committed to good Corporate Governance practices and abide by the rules of NGX and other extant laws in the country.
In a goodwill message, the president, Institute of Chartered Accountants of Nigeria and also president, Nigeria Integrated Reporting Committee (NIRC), Dr. Innocent Okwuosa said, while the FRCN has put in place mechanism to ensure that the country get the implementation of the financial standard right, it is important to ensure that the capacity of the implementation is effective.
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