FRC Executive Secretary Urges Nigerian Firms to Prioritise Sustainability Reporting for Global Capital Access
Nigerian businesses must strategically embrace sustainability reporting to unlock global capital and enhance their competitiveness in an increasingly ESG-conscious investment landscape, according to Dr. Rabiu Olowo, Executive Secretary/Chief Executive of the Financial Reporting Council (FRC). Speaking at the 5th Annual Nigeria Employers’ Summit in Abuja, Olowo emphasised that investors are now evaluating companies not solely on profitability, but also on their management of Environmental, Social, and Governance (ESG) risks, their capacity for long-term value creation, and their demonstrated resilience.
The FRC boss, represented by Mr. Abubakar Rasaq, Head of Sustainability Reporting Regulations Department, highlighted that the global shift towards ESG considerations is fundamentally reshaping investment decisions. Credible sustainability disclosures have become a critical determinant for companies seeking financing, strategic partnerships, and access to international markets. This presents both a significant opportunity and a challenge for Nigerian enterprises, as global investors, lenders, and development finance institutions increasingly direct resources towards organisations that provide clear and reliable information on their sustainability performance.
In an environment where capital access can be constrained, companies that provide robust sustainability disclosures are better positioned to garner investor confidence. Olowo underscored that transparency is now a foundational element in investment decision-making. Sustainability reporting has transcended mere compliance, evolving into a strategic imperative that can bolster governance, strengthen risk management frameworks, and elevate long-term competitiveness. These disclosures enable businesses to articulate their future growth strategies more effectively, allowing investors to assess not only current financial health but also preparedness for emerging risks and opportunities.
Nigerian companies that delay their preparations for sustainability reporting risk falling behind their global peers, especially as reporting expectations continue to tighten across major economies. Olowo cautioned that global supply chains, multinational corporations, and financial institutions are becoming more discerning, with sustainability information now a key component in investment, lending, and procurement decisions.
The widespread adoption of sustainability reporting holds profound implications for Nigeria as a whole. Enhanced corporate transparency is expected to improve the nation’s investment climate, deepen investor confidence, bolster institutional credibility, and position Nigerian enterprises for more effective competition on the global stage. Businesses demonstrating sound governance and responsible practices will be better equipped to attract foreign capital, expand export capabilities, and integrate into international value chains.
Olowo urged company boards and executive management to take proactive ownership of sustainability reporting, moving beyond a perfunctory compliance exercise. Sustainability considerations must be deeply embedded within corporate strategy, risk management, and long-term decision-making to ensure sustained competitiveness. The FRC remains committed to supporting this transition through technical guidance, stakeholder engagement, and capacity-building initiatives.
Nigeria’s phased implementation roadmap is designed to prepare businesses for mandatory reporting for public interest entities, scheduled to commence in 2028. Currently, over 50 organisations across key sectors, including banking, manufacturing, telecommunications, oil and gas, insurance, and financial services, are actively working towards adopting the International Sustainability Standards Board (ISSB) Standards. Furthermore, more than 4,500 participants from 215 organisations have benefited from the FRC’s training programmes.
Sustainability reporting represents a strategic opportunity for Nigeria to enhance its attractiveness as an investment destination by strengthening corporate governance, improving transparency, and reinforcing confidence in national institutions. Companies that proactively adapt to the evolving reporting landscape will be better positioned to secure long-term capital, access new markets, and build resilience against future economic shocks. This, in turn, will benefit the broader economy through increased capital inflows, job creation, and more sustainable growth.
Olowo articulated that future business success will hinge on trust, which is increasingly built on transparency. He stressed that organisations that anticipate change are inherently better positioned than those that merely react. Sustainability reporting offers Nigeria a chance to bolster its competitiveness, attract investment, and cultivate more resilient institutions. This opportunity, he asserted, must be seized with confidence and determination. For Nigeria, this initiative transcends a mere reporting reform; it is a pathway to strengthening the investment environment, improving corporate transparency, deepening institutional confidence, and positioning Nigerian businesses for greater global economic participation.
The FRC Executive Secretary also presented the draft 2026 Nigerian Actuarial Practice Regulations (NAPRs) to stakeholders in Lagos. This regulatory framework, developed through extensive technical work and stakeholder collaboration, aims to provide a robust structure for actuaries offering services for financial reporting purposes, in compliance with the FRC Act, 2011 (as amended). Olowo, represented by Mr. Olasunkanmi Ayinde, Head of the Directorate of Auditing Practices Standards, emphasised the critical link between reliable actuarial work and dependable financial reporting. Weak actuarial assumptions, inconsistent valuations, and a lack of professional accountability can undermine investor confidence and diminish public trust.
The proposed NAPRs are designed to establish minimum professional and technical standards, strengthen ethical conduct and independence, promote consistency in actuarial practice, and enhance transparency and accountability. They aim to improve the quality of actuarial reports, encourage the development of local actuarial data and assumptions, and support compliance with International Financial Reporting Standards (IFRSs), particularly IFRS 17 and IAS 19. Ultimately, these regulations are intended to bolster investor confidence in Nigeria’s financial reporting environment and contribute significantly to financial stability and economic resilience, particularly for Public Interest Entities (PIEs).
Key provisions of the draft regulations are aligned with internationally recognised principles while incorporating Nigeria’s specific realities. They encompass comprehensive regulatory coverage, adoption of international best practices, emphasis on ethics, independence, and professional integrity, as well as transparency and consistency. The framework integrates international actuarial standards with carefully considered local adaptations, ensuring global credibility and local relevance. It reinforces the importance of independence, objectivity, confidentiality, professional competence, and ethical conduct, embedding quality management systems, peer review mechanisms, and professional accountability. Standardised reporting requirements are expected to significantly improve comparability, consistency, and reliability across actuarial engagements.
Olowo reiterated the FRC’s belief that effective regulation is a collaborative effort, informed by practical experience, technical expertise, and stakeholder participation. The engagement session provided a critical opportunity for all interested parties to critically and constructively examine the Exposure Draft.
In a related development, Mr. Rotimi Okpaise, Chairman of the Nigerian Actuarial Development Programme (NADP), presented an overview of the programme. NADP, a strategic initiative of the FRC, aims to cultivate a strong, sustainable, and globally competitive actuarial profession in Nigeria. Established under the FRC Act, 2011, it reflects the council’s commitment to strengthening financial reporting, risk management, and economic resilience. The NADP workgroup provides strategic direction for the profession’s development and builds local capacity to support Nigeria’s evolving financial sector. Mr. Harris Oshojah, Assistant Director/Head of the Directorate of Actuarial Standards, highlighted the stakeholder engagement session as a crucial step in strengthening actuarial practice regulation in Nigeria, ensuring that actuarial services for financial reporting are properly guided and fit for purpose.
