The Securities and Exchange Commission (SEC) has rolled out a comprehensive strategy to accelerate the adoption of International Sustainability Standards Board (ISSB) disclosure frameworks in Nigeria, a move it says will enhance transparency, reduce capital costs, and draw international investment into the country’s capital market.
Speaking at a panel session on IFRS S1 and S2 standards, SEC Director-General, Emomotimi Agama, affirmed the Commission’s commitment to aligning Nigeria’s capital market with the ISSB’s global baseline, which operates under the International Financial Reporting Standards (IFRS) Foundation.
Agama explained that embedding the standards will deepen investor confidence, raise the appeal of Nigerian securities to global institutional investors and development finance institutions, and unlock opportunities for innovative products such as green bonds, sustainability-linked bonds, and transition sukuk.
Under the Commission’s roadmap, voluntary adoption of the standards will begin with early movers and large public interest entities (PIEs), ahead of phased mandatory adoption: 2027 for significant PIEs, 2028 for other PIEs, and 2030 for small and medium-sized enterprises.
“The sustainability disclosure regime will provide investors with clear, comparable, and decision-useful information on how companies manage risks, strengthen resilience, and implement transition strategies,” Agama said.
“This will help reduce perceived risks, lower borrowing costs, and expand access to global pools of long-term capital.”
To support implementation, the SEC is collaborating with the Financial Reporting Council of Nigeria (FRCN) on phased assurance requirements, while also partnering with the Nigerian Exchange Limited (NGX) on taxonomy-enabled digital reporting systems designed to facilitate machine-readable disclosures.
The Commission is further engaging pension funds, asset managers, and institutional investors to align data reporting expectations, a step aimed at cutting duplication in environmental, social, and governance (ESG) requirements that often weigh heavily on issuers.
Agama revealed that the SEC will initially adopt a “comply or explain” framework, combined with a review-based supervisory approach, before shifting to full enforcement once market participants have built sufficient capacity.
He stressed that the initiative is designed to strike a balance between regulatory discipline and developmental support, ultimately positioning Nigeria as a credible hub for responsible investment capital.
“Aligning with the ISSB standards is central to our vision of building a transparent, resilient, and globally competitive market,” Agama added.
“It will open Nigerian issuers to larger pools of long-term capital, reinforce investor trust, and underpin inclusive economic growth.”