The Securities and Exchange Commission (SEC) of Nigeria is considering a gradual implementation of global sustainability disclosure standards. Dr. Emomotimi Agama, the Director General of the SEC, made this announcement at an investors’ roundtable on the International Sustainability Standards Board (ISSB). The ISSB standards, developed by the International Organisation of Securities Commissions (IOSCO), aim to provide a global baseline for sustainability disclosures.
Nigeria’s participation in the task force that developed the standards demonstrates its commitment to supporting the four pillars on which they are built. According to Dr. Agama, Nigeria is vulnerable to climate change due to its vast natural resources and growing population, and is simultaneously pursuing an ambitious sustainable finance agenda. The country’s adoption of the ISSB framework is expected to enhance the attractiveness of the Nigerian capital market to international investors.
Dr. Agama emphasized that the SEC will not simply adopt the standards without tailoring them to the local market. Instead, the Commission will focus on capacity building, phased implementation, assurance framework, and alignment with local realities. This approach will ensure that the global baseline is applied in a way that is appropriate and proportional for the Nigerian market, while maintaining the core goal of global comparability.
The adoption of the ISSB standards is expected to have several benefits, including enhanced transparency, governance, and management of long-term risk. It will also provide a common language for sustainability disclosures, facilitating global comparability and investor trust. Dr. Agama reaffirmed the Commission’s commitment to working with stakeholders domestically and across the IOSCO network to implement the standards effectively.
The implementation of the ISSB standards is a significant step towards building a more stable, transparent, and sustainable financial future for Nigeria and the world. By adopting these standards, the SEC is signaling its commitment to transparency, governance, and managing systemic risk. The Commission’s approach is expected to contribute to the growth and development of the Nigerian capital market, while also supporting the global effort to achieve a sustainable economy.
