The Bag and Securities Commission (SEC) has announced plans to accelerate the adoption of the adoption of the dissemination frameworks of international sustainability standards (ISSB) in Nigeria, a measure that says it will strengthen the transparency of the market, reduce the risk of information and attract international investment in the capital market.
Speaking in a panel session about sustainability standards S1 and S2 of the IFRS and S2, the general director of the SEC, Dr. Emomotimi Agama, said that align Development financial.
Agama said that the SEC, as a member of the International Organization of Securities Commissions (IOSCO), has actively contributed to international policies discussions and joined the work group for adopting ISSB standards (ARWG), which developed the Nigeria implementation roadmap.
The road map introduces a gradual approach, which begins with voluntary adoption by the first users and large entities of public interest (PIS), before moving on to mandatory compliance in 2027 for significant cakes, 2028 for other cakes and 2030 for small and medium enterprises.
According to the head of the SEC, the sustainability dissemination framework will provide investors clear, comparable and useful information on business risk management, cash flow resistance and transition strategies.
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This, he explained, will reduce the perceived risks, will reduce loan costs and expand access to global capital groups.
Agama also revealed that the Commission is involving pension funds, asset administrators and institutional investors through the Master Plan for the Master Plan in the capital market (CAMMIC) to harmonize data reports and align applications with ISSB metrics.
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This, he said, will relieve the loading of the reports of Multiple and fragmented ESEs for the Issuers.
To improve the quality of the reports, the SEC is also working with the Nigeria Financial Report Council (FRCN) to introduce gradual guarantee requirements that balance the confidence of investors with cost considerations.
Similarly, the Commission is collaborating with Nigerian Exchange Limited (NGX) to develop digital reports platforms enabled for taxonomy for sustainability dissemination legible by machine.
During the transition period, the SEC will adopt a review -based supervision approach and apply a regime to “comply or explain” before moving on to the complete application, since market participants and guarantee suppliers create capacity.
Agama added that the complete implementation of ISSB standards would not only improve market credibility, but also stimulate innovation in products such as green bonds, bonds linked to sustainability and transition sukuk, thus diversifying offers, promoting liquidity and improvement of Nigeria’s eligibility for global indices.
“Alignment with ISSB standards is essential for our vision of building a transparent, resistant and globally competitive market,” said Agama, and said that “it will open Nigerian emitters to larger long -term capital groups, strengthens investor confidence and integrate SMEs into global value chains through sustainability reports.”
He stressed that integrating sustainability standards into the capital market of Nigeria will consolidate the role of the SEC as a market facilitator while positioning the country as a credible destination for responsible investment capital.
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