The Federal Reporting Council cautioned corporate and government entities against lying about financial records and reporting standards.
Dr Rabiu Olowo, the council’s Executive Secretary, issued a warning at a regulatory roundtable meeting in Abuja, emphasizing that the council would not accept false claims about environmental impact in sustainability reports.
This event was held to mark the visit of Mr. Emmanuel Faber, Chairman of the International Sustainability Standards Board, and his team to Nigeria.
Olowo mentioned that the group had completed the roadmap document to guide the implementation of sustainability reporting in phases and with assurance and timelines.
He also pledged to use the expertise of the Adoption Readiness Working Group to ensure effective regulatory supervision in the country.
He noted that while many economies are struggling to achieve social, environmental, and climate goals outlined in the 2030 Agenda and the Paris Agreement, Nigeria is making steady progress.
He cited the roadmap report for adopting the International Sustainability Standards IFRS S1 and S2 by the FRC, as well as the establishment of the Interministerial Committee on Carbon Market Activation Plan by President Bola Tinubu, as examples of this progress.
Faber stated that the ISSB standards would help banking supervision committees assess risks in banks’ portfolios.
He mentioned, “The International Public Sector Accounting Standards, for government and state entities, have also chosen our standards to incorporate climate topics into national accounting systems.”
In addition, Mr. Innocent Okwuosa, the President of the Institute of Chartered Accountants of Nigeria, praised the FRC for leading the adoption of reporting standards and stated, “We have raised awareness within ICAN and all our members are on board”.
However, the FRC boss highlighted that global harmonization of sustainability disclosure standards is crucial to align private and public capital flows with measurable sustainability outcomes.
He explained that this would make better data available and allow for progress in other areas within the “impact transparency” agenda for informed decision-making beyond financial return and risk alone.
