FRC Advocates Mandatory Sustainability Reporting as Driver of Competitiveness, Investment at NECA Summit

The Financial Reporting Council of Nigeria (FRC) has underscored the importance of mandatory sustainability reporting as a critical tool for enhancing enterprise competitiveness, attracting investment, and promoting sustainable economic growth in Nigeria.

The position was presented at the 2026 Nigeria Employers’ Summit organised by the Nigeria Employers’ Consultative Association (NECA), held at Abuja Continental Hotel from July 29 to 30.

The summit, themed “Leveraging Reforms and ESG for Enterprise Competitiveness and Inclusive National Growth,” brought together policymakers, business leaders, regulators, development partners, and members of the diplomatic community to deliberate on strategies for improving Nigeria’s business environment and driving inclusive national development.

The FRC delegation was led by its Executive Secretary and Chief Executive Officer, Dr. Rabiu Olowo, who participated in the event. On the second day of the summit, the Council’s Head of Sustainability Reporting Regulation, Dr. Rasak Abubakar, represented Olowo and delivered a keynote address titled “Mandatory Sustainability Reporting: A Catalyst for Competitiveness, Access to Finance and Sustainable Growth in Nigeria.”

Addressing participants during Plenary Session Three on mandatory sustainability reporting, Abubakar said the global business environment has evolved beyond measuring organisations solely by financial performance, noting that investors, lenders, customers, and employees now demand greater transparency regarding environmental, social, governance, and climate-related issues.

According to him, trust has become one of the most valuable assets organisations possess, and such trust is increasingly built on openness and accountability.

He stressed that sustainability reporting should not be viewed merely as another regulatory requirement but as a strategic tool that enables organisations to understand risks, identify opportunities, and create long-term value.

“Investors want confidence. Lenders want confidence. Markets want confidence. Sustainability reporting is increasingly becoming one of the mechanisms through which that confidence is established,” he said.

The FRC official noted that sustainability disclosures are fast becoming a common language across global markets, with businesses seeking investment, international financing, and access to global value chains increasingly required to provide credible information on sustainability-related risks and opportunities.

He explained that organisations that embrace transparency and responsible business practices would enjoy stronger competitiveness in an evolving global economy.

Using examples from manufacturing, investment, and multinational partnerships, Abubakar argued that sustainability reporting now serves as a business enabler rather than a compliance burden, adding that companies capable of demonstrating resilience, accountability, and long-term value creation would have a distinct advantage.

On the urgency of adoption, he pointed to rapidly changing international reporting frameworks, increasing investor expectations, and evolving supply chain requirements as reasons Nigerian businesses should prepare ahead of mandatory implementation.

He said early adopters would have sufficient time to develop internal systems, build capacity, and strengthen governance structures before sustainability reporting requirements become compulsory.

Highlighting Nigeria’s progress, Abubakar disclosed that the FRC had developed a four-phase roadmap for implementing the standards of the International Sustainability Standards Board to ensure Nigerian companies remain globally competitive while aligning with international best practices.

The roadmap, he explained, began with early adoption by leading organisations, followed by the current voluntary adoption phase, with mandatory reporting for Public Interest Entities scheduled to commence in 2028 before eventual extension to public sector institutions.

He identified companies such as MTN Nigeria, Seplat Energy, Fidelity Bank Plc, and Access Bank Plc as pioneers already demonstrating leadership in sustainability reporting.

According to him, more than 50 organisations across banking, manufacturing, telecommunications, insurance, fintech, oil and gas, consumer goods, and small and medium enterprises are currently progressing towards full adoption of sustainability disclosure standards.

He further revealed that the Council had conducted over 47 training programmes and technical workshops involving more than 4,500 participants drawn from over 215 organisations nationwide.

Abubakar maintained that sustainability reporting could significantly improve access to finance by boosting investor confidence and strengthening relationships between businesses and providers of capital.

“Transparency builds trust. Trust attracts capital. Capital drives growth, and growth creates prosperity,” he stated.

He urged business leaders to take ownership of sustainability initiatives at the highest levels of corporate governance rather than leaving such responsibilities solely to compliance departments.

According to him, sustainability considerations should be integrated into boardroom discussions, strategic planning processes, and enterprise risk management frameworks.

He commended NECA for sustaining dialogue on critical economic reforms and environmental, social, and governance issues, assuring stakeholders that the FRC would continue to provide guidance, build capacity, and engage industry players to ensure successful implementation of sustainability standards across Nigeria.

The FRC, he said, remains committed to fostering a reporting ecosystem that promotes transparency, strengthens governance, attracts investment, and supports sustainable national development.

He concluded that sustainability reporting represents not merely a regulatory reform but a strategic opportunity to deepen investor confidence, strengthen institutions, improve competitiveness, and position Nigerian businesses more effectively within 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.