Nigerian Companies Prepare to Adopt ISSB Standards

By Aduragbemi Omiyale

Some Nigerian companies are gearing up for the earlier adoption of Sustainable Accounting Standards Board (SASB) Standards.

Recently, in preparation for the standard effectiveness of the International Sustainability Standards Board (ISSB), five webinars were held for the imminent release of the ISSB’s first two IFRS Sustainability Disclosure Standards, better known as IFRS S1 (General Requirements for Disclosure of Sustainability-related Financial Information); and IFRS S2 (Climate-related Disclosures).

The virtual workshops were put together by the ISSB, the Financial Reporting Council of Nigeria (FRCN), and the Nigerian Exchange (NGX) Regulation Limited.

The webinars themed ISSB Industry-based Disclosure: Using the SASB Standards – A Tool for Disclosure of Sustainability-Related Information, were well attended by over 1,500 individuals from Nigeria, Africa and beyond.

They featured presentations on IFRS S1 and IFRS S2 as well as the industry-specific metrics drawn from the SASB Standards, covering four industries: the Oil & Gas, Telecommunications, Financial Services, and Food & Beverages and Consumer Goods sectors.

Commending the FRCN, ISSB and NGX RegCo for their efforts in helping to create awareness around the launch and adoption of IFRS 1 and IFRS 2, the Executive Secretary of the FRCN, Ambassador Shuaibu Adamu, said that it is encouraging that African countries are coming together to collaborate in this capacity building programme because it is clear that Africa does not intend to be left behind and is partnering with the IFRS Foundation to ensure significant further investment in capacity building for African countries is delivered, also to ensure the ISSB standards are truly global in their implementation.

Speaking during the webinar series, the Director, Directorate of Accounting Standards (Public Sector) of the FRCN, Dr Iheanyi Anyahara, commended the joint efforts of the organizers to ensure that Nigerian companies are prepared to early adopt the ISSB Standards when they become effective.

He also noted that the capacity-building engagements will continue even after the webinar series.

Additionally, he stated that the FRCN had inaugurated the Adoption Readiness Working Group (ARWG), which will make recommendations to the FRCN on adopting the IFRS Sustainability Standards in Nigeria.

The chief executive of NGX RegCo, Ms Tinuade Awe, stated that as a member of the NGX Group, NGX RegCo had been involved in furthering the development of sustainability reporting in Nigeria over a period of time.

Expressing her appreciation to the FRC and the ISSB for collaborating with NGX RegCo in this successful effort, Ms Awe noted that the webinars were necessary in order to get Nigerian and African companies ready to comply with IFRS S1 and IFRS S2 when they become effective so that they will not be left behind in the global race to unlock capital for growth and development.

On her part, a Board Member of the ISSB, Dr Ndidi Nnoli-Edozien, said that “the IFRS Accounting standards are used across 140 countries, and the objective of the IFRS Sustainability Standards is to enable companies to provide a global baseline of sustainability-related and climate-related disclosures that are decision-useful, cost-effective and market informed providing comparability across companies, industries and markets and applicable without undue cost and effort.

According to her, sustainability-related disclosures are important to global capital markets and will develop a common language of sustainability-related disclosures that provide decision-useful information to investors with the potential to unlock capital flows.