NGX Regulation Limited (NGX RegCo) has restated its commitment to ensure that the nation’s capital market remains fair, transparent and orderly, thriving on timely information.

At the launch the first two IFRS Sustainability Disclosure Standards (IFRS S1 and IFRS S2 Standards), in collaboration of the Financial Reporting Council (FRC) of Nigeria, International Sustainability Standards Board (ISSB), Chief Executive Officer, NGX RegCo, Ms Tinuade Awe, said the regulation would continue to ensure that the market thrives on full and timely information to protect investors.

The launch, which held at Nigerian Exchange Group House in Lagos, makes Nigeria the first African country to adopt the standards, just as they were also launched in six major global financial centers including; New York, London, Frankfurt, Singapore, Santiago and Montreal.

According to Awe, the launch of the sustainability standard is imperative for the growth of the capital market, as companies in Nigeria will now have a global baseline for their sustainability reports.

She also stressed the need for listed firms to adopt the standard to enable them operate in line with global best practice.

Executive Secretary, FRC, Ambassador Shuaibu Adamu, noted that the launch of the standard is a testament to the country’s unwavering commitment to responsible and sustainable business practices.

According to him, the adoption of the standards also reaffirms the nation’s position as one of the global leaders in sustainability reporting.

“Today, there is a growing global, environmental, social and governance investor base of over $2 trillion in global institutional investor funds under management. No country or institution can attract or accept these private investment capital if you are not seen to be committed to climate and sustainable development. Nigeria must therefore compete with the rest of the world for this private capital.

“Obviously, in Nigeria, NGX provides a veritable platform to attract this capital. Comprehensive, comparable and transparent information about sustainability and climate related risks and opportunities will play an essential role in appropriately pricing these risk and opportunities and unlock the needed private capital flows,” Adamu said.

Director-General, Securities and Exchange Commission (SEC), Lamido Yuguda, who was represented by the Executive Commissioner, Operations, Dayo Obisan, said the launch of the ISSB Standards in Nigeria signals the country’s readiness to embrace sustainability as a core value in financial reporting practices.

“This sends a strong message to the global community that Nigeria is committed to transparent and responsible business practices that prioritise environmental stewardship, social well-being as well as good governance,” he added.

Chair, ISSB, Emmanuel Faber, said that the lacks of comparability and ambiguity about the many available standards and frameworks have limited the effectiveness of reporting and the efficiency of capital markets.

Faber further stated that the standards are cost effective for reporters and useful for investors and added that organisations that use IFRS 1 and 2 as a tool to communicate to investors will win a financing competitive advantage.