The Monetary Reporting Council (FRC) has reaffirmed its dedication to pushing Nigerian corporations towards sustainability reporting that isn’t solely compliant but additionally credible, main, and globally aggressive.
The Council mentioned, on Wednesday, that its purpose is to make sure Nigerian companies meet worldwide finest practices and place themselves as robust gamers within the international sustainability panorama.
Rabiu Olowo, Govt Secretary and Chief Govt Officer of the FRC, made this identified on the Local weather Governance Initiative (CGI) Nigeria Administrators’ Engagement Collection held in Lagos.
He reminded individuals that Nigeria, via the FRC, turned the primary nation in Africa to announce the early adoption of the Worldwide Sustainability Requirements Board (ISSB) requirements at COP 27 in Sharm El-Sheikh, Egypt, in 2022.
Learn additionally: FRC clinches UNCTAD-ISAR Honour, stands out as Africa’s only recipient
He mentioned the announcement was adopted instantly by concrete actions, together with the institution of the Adoption Readiness Working Group (ARWG), a technical suppose tank made up of main stakeholders in Nigeria’s monetary reporting and company governance ecosystem.
Olowo urged administrators to view IFRS S1 and S2 as strategic instruments slightly than regulatory burdens. “These frameworks will assist your organisations anticipate dangers, seize rising alternatives, and construct belief with stakeholders. The way forward for enterprise is sustainable, clear, climate-conscious, and ruled by data-driven decision-making,” he mentioned.
Throughout her presentation, Tomi Adepoju, Associate and Head of Enterprise Danger and ESG Providers at KPMG Nigeria, used sensible examples to spotlight why some board members nonetheless hesitate to prioritise sustainability reporting.
She recounted her expertise with a CEO who instructed her, “I don’t imagine in sustainability,” explaining that the CEO solely proceeded with the method as a result of his board mandated it. “That’s the reason board management is so essential,” she emphasised.
Adepoju additionally illustrated how governance failures intensify Nigeria’s climate-related challenges. She referenced the long-delayed dam venture between Nigeria and Cameroon, which was meant to manage water movement and stop extreme flooding. “As a result of our personal dam was by no means accomplished, every time Cameroon releases water, communities in Nigeria endure. Farmlands are destroyed, lives are misplaced. It is a governance problem that has grow to be a social problem after which an environmental one. That’s ESG in actual life,” she mentioned.
Specialists from the FRC, together with Harmless Okwuosa and Abubakar Razaq, guided administrators via their obligations underneath IFRS S1 and S2. They outlined Nigeria’s adoption roadmap and emphasised the necessity for boards to make sure corporations gather high-quality knowledge and strengthen their inside reporting methods.
A panel session moderated by Adepoju featured Olowo; Remi Odunlami of FirstBank; A. B. Mahmoud, of MTN Nigeria; and Taiwo Osindero of Seplat Power. The panel explored sensible implementation challenges.
Learn additionally: FRC, SEC urge audit committees to expand capacity development to boost investor confidence
Odunlami famous that “Boards want coaching. Many administrators are solely now starting to grasp how local weather dangers have an effect on monetary efficiency.” Mahmoud careworn the significance of stronger collaboration between regulators and the personal sector to help compliance, whereas Osindero urged corporations to spend money on improved methods, saying, “If the information is weak, the reporting can be weak.”
Kehinde Fadare of KPMG delivered a abstract of key classes from the engagement, encouraging administrators to take possession of the transition. “If boards don’t lead this transition, corporations will fall behind. That is now a part of international enterprise observe,” he mentioned.
Adebajo famous that CGI Nigeria would proceed to help administrators via instruments, coaching, and partnerships. He referred to as on Nigerian boards to embrace local weather governance early, stressing that international requirements are tightening and firms should be proactive to stay aggressive.
