By Chukwuma Umeorah
The Financial Reporting Council of Nigeria (FRC), in partnership with the Nigeria Integrated Reporting Committee (NIRC), has announced a series of training programmes aimed at enhancing sustainability reporting standards in Nigeria.
The Chairman of NIRC and the immediate past president of the Institute of Chartered Accountants of Nigeria, Dr. Innocent Okwuosa in an interview session with journalists on Thursday noted that this initiative is part of a broader effort to implement the International Sustainability Standards Board (ISSB) Sustainability Standards, thereby advancing transparency and accountability in corporate reporting.
Commending Nigeria as being the first African country to announce the adoption of ISSB, Okwuosa noted that the key objectives of the partnership with FRC is to avoid the challenges faced during the implementation of international financial reporting standards.
He stated, “The FRC has signed a Memorandum of Understanding with the NIRC, designating it as a technical partner to ensure effective advocacy, capacity building, and smooth implementation of the new standards.
“As part of the capacity-building efforts, a series of training programs have been scheduled to commence on July 10th, targeting financial institutions and other key sectors. These sessions will feature resource persons from the ISSB and the Pan-African Federation of Accountants (PAFA).”
Okwuosa emphasized the broader implications of adopting these sustainability standards. “Sustainability reporting will help unlock capital in the capital market by improving transparency and reducing the cost of capital for businesses,” he explained. He also highlighted the global context, noting that investors increasingly demand robust sustainability information to make informed decisions, especially concerning climate-related risks.
He added that the partnership stems from the establishment of the Adoption Readiness Working Group by the FRC, tasked with developing a roadmap for the integration of ISSB’s Sustainability Standards in Nigeria. This roadmap, which spans from 2023 to 2030, outlines a phased approach beginning with voluntary adopters in 2023 and transitioning to mandatory adoption for all public interest entities and listed companies in subsequent years.
The NIRC, established in 2017, has been a strong advocate for the integration of sustainability and financial reporting. Its multi-stakeholder membership includes representatives from major regulatory bodies such as the Central Bank of Nigeria (CBN), the National Insurance Commission (NICOM), the Pension Commission (PENCOM), the Securities and Exchange Commission (SEC), and the Nigerian Stock Exchange (NGX), among others.