The Chief Executive Officer of NGX Regulation Limited (“NGX RegCo”), Mr. Olufemi Shobanjo, has commended the Financial Reporting Council of Nigeria (FRCN) for its pioneering role in advancing sustainability reporting standards across the African continent.
Speaking at the Regulatory Roundtable for Sustainability Reporting in Nigeria, hosted by FRCN recently in Abuja, Shobanjo commended the FRCN's proactive approach and leadership in driving sustainability education and adoption of sustainability financial reporting standards. "The FRCN has demonstrated remarkable foresight and commitment to corporate transparency and sustainable business practices," Shobanjo remarked.
The commendation comes in light of Nigeria's groundbreaking move in June 2023, when it became the first African nation to adopt the International Sustainability Standards Board (ISSB) standards. This initiative saw the introduction of IFRS S1 and S2, which focus on sustainability and climate disclosures respectively.
According to him, the potential long-term benefits of this adoption, include increased investor confidence, improved corporate governance, and enhanced comparability of sustainability information across different markets.
He emphasized the significance of this achievement, stating, "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.
Shobanjo highlighted some significant developments, including NGX RegCo’s collaboration with 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,” Shobanjo said. He encouraged 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.
