President Tinubu mandates companies to adopt sustainability reporting standards by 2028

President Bola Ahmed Tinubu has affirmed Nigeria’s commitment to diligently implement world-leading sustainability reporting standards aimed at unlocking capital investments, transforming business models, and safeguarding the environment in the country.

The President gave the assurance on Thursday, March 21, 2024, at the State House, Abuja, during a meeting with the Chairman of International Sustainability Standards Board (ISSB), Mr. Emmanuel Faber.

The President’s endorsement coincides with the launch of Nigeria’s Adoption Readiness Roadmap by the Financial Reporting Council of Nigeria (FRC), in collaboration with ISSB.

This roadmap aims to guide businesses towards comprehensive sustainability reporting standards. 

During the meeting, President Tinubu emphasized the importance of compliance within the sustainability agenda. He assured that Nigeria would adhere to international standards and expressed readiness to collaborate with ISSB in harnessing national resources through reformed financial management systems.

”As an administration, we are committed to adopting cutting-edge models for financial reporting and process standardization. This applies to environmental regulation, where we are on the verge of significantly reducing the volume of gas flaring in the country. We are more transparent than ever before, and we are doing everything possible to represent the continent in a way that will be beneficial to humanity as a whole,” the President stated.

Mr. Emmanuel Faber, the ISSB Chair, commended Nigeria’s commitment to sustainability reporting. He recalled Nigeria’s expression of intent to be among the earliest adopters of rigorous new standards at COP 27 in Sharm el-Sheikh, Egypt, in 2022. According to Faber, ”I am extremely happy to be in Nigeria as the country announces its Adoption Readiness Roadmap. Nigeria is leading the pack in Africa and around the world, and these standards, which Nigeria is willingly adopting, will unlock sustainable capital inflows through foreign direct investments, promote inclusivity in value chains, and facilitate the decarbonization of the national economy.”

Dr. Rabiu Olowo, the Executive Secretary/CEO of the FRC, explained that Nigeria’s decision to join the global baseline for sustainability reporting demonstrates its early commitment to enhancing transparency in financial information and business performance through sustainable reporting practices. He stated that ”The adoption readiness working group is set to pilot our affairs and roadmap to help us succeed on this journey. We are happy to inform the President that the work of the adoption readiness roadmap is ready, and we have the roadmap for businesses to follow. We have five sets of early adopters, and we have a period for voluntary adoption leading up to 2028 for mandatory adoption of the standards,”

Nigeria is paving the way for sustainable reporting practices, marking it as a key player in driving economic growth while safeguarding the environment. The implementation of these world-leading standards will attract capital investments, promote inclusive value chains, and contribute to the decarbonization of the national economy.