The Executive Secretary and Chief Executive Officer of the Financial Reporting Council (FRC) of Nigeria, Rabiu Olowo, has urged Nigerian businesses to adopt sustainability reporting as a strategic tool for improving competitiveness, attracting investment and achieving long-term growth ahead of its mandatory implementation in 2028.

Speaking at the 5th Annual Nigeria Employers’ Summit held at the Abuja Continental Hotel on Tuesday, June 30, Olowo said the global business environment has shifted beyond measuring companies solely by financial performance, with investors, lenders, customers and employees increasingly demanding transparency on how organisations manage environmental, social and governance (ESG) issues alongside financial results.

 

Delivering a keynote address titled “Mandatory Sustainability Reporting: A Catalyst for Competitiveness, Access to Finance and Sustainable Growth in Nigeria,” he said sustainability reporting has become a key factor in building trust and strengthening investor confidence. “The rules of business are changing,” Olowo said. “Investors, lenders and markets want confidence, and sustainability reporting is increasingly becoming one of the tools through which that confidence is established.”

 

He explained that sustainability reporting is not merely about regulatory compliance but about providing information that enables investors and other stakeholders to make informed decisions while helping organisations better identify and manage risks and opportunities. According to him, sustainability disclosures are increasingly becoming a common language across global markets, influencing investment decisions, access to international finance, participation in global supply chains and entry into foreign markets.

 

Olowo noted that companies seeking foreign investment, export opportunities or partnerships with multinational corporations would increasingly be required to demonstrate transparency in governance, environmental management and supply chain sustainability. “It becomes more than a reporting requirement. It becomes a business enabler,” he said, adding that businesses delaying preparations for mandatory reporting could struggle to meet future requirements as countries around the world tighten sustainability disclosure rules and financial institutions incorporate sustainability considerations into lending decisions.

 

Highlighting Nigeria’s preparedness, Olowo said the FRC had developed a four-phase roadmap for adopting the International Sustainability Standards Board (ISSB) Standards. The roadmap began with early adoption by pioneer companies, followed by the current voluntary adoption phase, while mandatory reporting for Public Interest Entities will commence in 2028 before being extended to public sector organisations in the final phase. He identified the pioneer adopters as MTN Nigeria, Seplat Energy, Fidelity Bank and Access Bank.

 

According to him, more than 50 organisations across sectors including banking, manufacturing, telecommunications, insurance, oil and gas, financial technology and small and medium enterprises are already progressing towards full adoption of the standards. He added that the council had organised over 47 training programmes, workshops and technical sessions, reaching more than 4,500 participants from over 215 organisations, while also producing guidance materials and providing technical support to facilitate implementation.

 

Olowo said access to finance remains one of the biggest challenges facing businesses, but organisations that provide credible sustainability information are more likely to enjoy greater confidence from investors and lenders. “Transparency builds trust. Trust attracts capital. Capital drives growth. And growth creates prosperity,” he said.

 

He stressed that sustainability reporting should become a leadership priority rather than being left solely to compliance departments, urging company boards and executives to integrate sustainability considerations into strategic planning, governance and risk management. The FRC boss also reaffirmed the council’s commitment to supporting organisations throughout the transition through capacity building, stakeholder engagement and technical guidance.

 

“Our objective is not merely to enforce compliance. Our objective is to build a reporting ecosystem that enhances transparency, strengthens governance, attracts investment and supports sustainable economic growth,” he said.

 

Olowo concluded that early adoption of sustainability reporting would strengthen Nigeria’s investment climate, improve corporate transparency and position Nigerian businesses for greater participation in the global economy.

 

“The companies that will succeed in the future will not necessarily be the biggest companies. They will be the companies that are most trusted. And trust is increasingly built on transparency,” he said.