More than 50 Nigerian companies have commenced the adoption of global sustainability reporting standards ahead of the country’s 2028 mandatory implementation deadline, as the Financial Reporting Council of Nigeria (FRC) says transparency has become the new currency for investment, competitiveness and access to finance.
This was as the council warned Nigerian companies that fail to embrace sustainability reporting risk losing access to international capital, export markets and strategic partnerships as investors increasingly demand transparency beyond traditional financial statements.
Speaking at the 5th Annual Nigeria Employers’ Summit organised by the Nigeria Employers’ Consultative Association in Abuja on Tuesday, the Executive Secretary and Chief Executive Officer of the Financial Reporting Council of Nigeria, Rabiu Olowo, said the rules of business is changing globally and companies that fail to embrace sustainability reporting risk being left behind.
According to the CEO, who was represented by the Head, Sustainability Reporting Regulations Department, Rasak Abubakar, investors, lenders and customers no longer judge companies solely by their financial statements and profit figures but increasingly want to know how businesses manage risks, govern their operations, respond to environmental challenges and create long-term value.
The session was themed, “Mandatory Sustainability Reporting: A Catalyst For Competitiveness, Access To Finance And Sustainable Growth In Nigeria”.
Olowo said, “At a time when Nigeria is implementing significant economic reforms, and businesses are navigating a rapidly changing operating environment, conversations about competitiveness, resilience, investment, and sustainable growth have never been more important.
“A few years ago, businesses were assessed primarily on their financial performance. Today, investors, lenders, customers and even employees want a more complete picture. They want to know not only how much profit a company makes, but how sustainable that profit is.
“They want to know how organisations manage risk, respond to emerging challenges, govern their operations and create value over the long term. In many respects, trust has become one of the most valuable assets any organisation can possess, and trust today is increasingly built on transparency.”
The FRC boss stressed that sustainability reporting should not be seen as another regulatory burden or a mere compliance exercise.
According to him, the reports have become a common language in global finance and international trade, helping investors and lenders determine which companies are resilient enough to attract long-term capital.
He said sustainability disclosures had become a common language across global markets and are now a major consideration for companies seeking foreign investment, international financing or participation in global supply chains.
“It is not about producing another report. It is not about compliance for compliance’s sake. It is about providing information that helps investors, lenders and other stakeholders make better decisions. It is about helping organisations understand their own risks and opportunities more effectively.
“The reality is that global capital is increasingly flowing towards organisations that can demonstrate resilience, transparency and responsible business practices. Investors want confidence. Lenders want confidence. Markets want confidence. And sustainability reporting is increasingly becoming one of the tools through which that confidence is established,” he stated.
Using the numbers to underscore Nigeria’s preparedness, Olowo said the FRC had developed a four-phase roadmap for the adoption and implementation of the International Sustainability Standards Board standards.
Under the roadmap, early adopters including MTN Nigeria, Seplat Energy, Fidelity Bank and Access Bank have already begun implementation, while the current phase allows voluntary adoption by organisations seeking to build capacity ahead of mandatory reporting for Public Interest Entities in 2028.
The final phase will extend the reporting requirements to public sector institutions and government entities. The council disclosed that it has so far trained over 4,500 professionals drawn from more than 215 organisations in preparation for the transition to sustainability reporting, which is increasingly becoming a requirement for businesses seeking international capital and market opportunities.
“As we speak, over 50 organisations across various sectors of the economy are actively progressing towards full adoption of IFRS Sustainability Disclosure Standards. These organisations cut across banking, financial services, manufacturing, industrial goods, consumer goods, oil and gas, telecommunications, insurance, fintech and even the SME sector. To support this transition, the Financial Reporting Council has organised over 47 training sessions, workshops and technical engagements, reaching more than 4,500 participants drawn from over 215 organisations,” he said.
He warned that businesses that delay preparations may struggle to catch up with changing global standards. “The best time to prepare for the future is before the future arrives. The organisations that prepare early will have more time to build capacity, strengthen systems and position themselves competitively. Those that wait until reporting becomes mandatory may find themselves playing catch-up,” he added.
Olowo further argued that access to finance was becoming increasingly linked to sustainability disclosures. According to him, investors are now directing capital towards companies that can clearly explain how they create value over time and manage sustainability-related risks.
“The implication is straightforward. Organisations that provide credible sustainability information are likely to enjoy greater confidence from investors and lenders. And in a capital-constrained environment, that advantage can be significant. Simply put, transparency builds trust. Trust attracts capital. Capital drives growth. And growth creates prosperity,” he said.
He maintained that the companies that would dominate the future would not necessarily be the biggest, but those considered the most trustworthy. “The companies that will succeed in the future will not necessarily be the biggest companies. They will be the companies that are most trusted. And trust is increasingly built on transparency,” Olowo stated.
The PUNCH