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Dr. Rabiu Olowo, Executive Secretary/Chief Executive Officer of the Financial Reporting Council of Nigeria (FRC), has called on financial institutions to incorporate sustainability reporting into their operations.
In a keynote address delivered at a workshop focused on implementing the International Sustainability Standards Board’s (ISSB) IFRS S1 and IFRS S2, Olowo highlighted the urgency of integrating sustainability practices. The workshop, held in Abuja and organized by the FRC in collaboration with the Nigerian Integrated Reporting Committee (NIRC), emphasized the FRC’s role in advancing sustainability reporting standards and its participation in the Adoption Readiness Working Group, which provides regulatory support and phased implementation plans from 2023 to 2030.
Olowo stressed that sustainability reporting is no longer optional but a mandatory requirement for financial institutions due to the escalating threats posed by climate change. He underscored that environmental, social, and governance (ESG) principles require immediate attention and action, with sustainability reporting being critical for regulatory compliance.
“The financial sector is pivotal in driving economic growth and development, and it is crucial for stakeholders to collaboratively integrate sustainability reporting into their operations. The FRC, NIRC, and other regulatory bodies are committed to advancing these standards. Now, it is incumbent upon financial institutions to lead in adopting these practices,” Olowo stated.
He further noted that embracing sustainability reporting would not only contribute to a more sustainable future but also enhance institutional reputation, manage risks, and unlock opportunities for growth and innovation. “The time for action is now. Together, we can position Nigeria’s financial sector as a leader in sustainability and transparency on the global stage,” he added.
Olowo highlighted that sustainability reporting can offer multiple benefits, including improved access to capital, increased stakeholder trust, cost efficiencies, tax advantages, and enhanced institutional reputation.
Dr. Innocent Okwuosa, Chairman of the NIRC, echoed these sentiments, urging financial institutions and stakeholders to adopt sustainability reporting to unlock capital and meet investor expectations. “Sustainability information is increasingly seen as crucial financial data, helping investors make informed decisions. Companies that fail to address climate risks may face challenges in attracting and retaining investors,” Okwuosa said.
The Central Bank of Nigeria and the Nigerian Exchange Group have already introduced guidelines to support sustainability reporting, reinforcing the need for financial institutions to align with these standards.
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