June 13, 2024

The Executive Secretary/Chief Executive, the Financial Reporting Council (FRC) of Nigeria, Dr Rabiu Olowo, has warned corporate and public entities that the council would not tolerate greenwashing in reporting sustainability.

   Olowo vowed that the council would leverage the efforts and rich expertise of the Adoption Readiness Working Group (ARWG) on the subject matter to deliver top-notch regulatory supervision in the country’s interest.

   Speaking at the opening of the roundtable to commemorate the visit of the Chairman, the International Sustainability Standards Board (ISSB), Emmanuel Faber, and his team to Nigeria, Olowo said the group had finalised the roadmap document, a tool to mainstream the implementation of sustainability reporting in phases and with assurance and timelines.

   He pointed out that though most of the world’s economies are failing to advance the social, environmental, and climate goals set in the 2030 Agenda and the Paris Agreement, Nigeria was taking steady and progressive steps.

   He said this is exemplified by the roadmap report for adopting the International Sustainability Standards by the FRC and the establishment of the Inter-ministerial Committee on Carbon Market Activation Plan by President Bola Tinubu.

   Faber, however, said the ISSB standards would assist banking supervision committees in assessing the risks in banks’ portfolios.

    “The International Public Sector Accounting Standards, for government and state entities, have also elected to choose our standards to bring climate topics and part of the national accounting systems,” he said.

   Also, the President of the Institute of Chartered Accountants of Nigeria (ICAN), Innocent Iweka Okwuosa, said: “We have created massive awareness within ICAN and all our members are onboard”.

   Nonetheless, the FRC boss said the harmonisation of sustainability disclosure standards globally remained a critical enabler to unlock and align the existing flows of both private and public capital with measurable sustainability outcomes.

   This he said would make better data available and allow for progress in other fields within the “impact transparency” agenda for agents to make informed decisions with full information that evolves from the current paradigm of financial return and risk alone.

   He emphasised: “Adequate disclosure is key to investment decisions and our country, Nigeria, urgently needs investments, especially foreign direct investment.”


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