The Financial Reporting Council (FRC) of Nigeria wants business leaders to treat sustainability reporting as a top boardroom priority. Companies that publish transparent environmental, social and governance (ESG) disclosures will find it easier to attract investors, secure financing and compete globally, the agency stressed.
Rabiu Olowo, the FRC's executive secretary and chief executive officer, made the push on Monday in Abuja. His Head of Sustainability Reporting Regulations, Abubakar Rasaq, represented him at the 5th Annual Nigeria Employers' Summit, hosted by the Nigeria Employers' Consultative Association (NECA).
Olowo told attendees that sustainability reporting has stopped being just a regulatory box to tick. It's now a vital business tool that creates long-term value and helps companies survive shocks, he explained.
Investors, lenders, customers and workers now demand to see how organisations manage environmental, social, governance and climate risks. Sustainability disclosures build the trust stakeholders need, Olowo said.
"A few years ago, businesses were assessed primarily on their financial performance," he noted. "Today, investors and other stakeholders want to know not only how much profit a company makes, but how sustainable that profit is."
The FRC boss added that modern investors want deeper insight into how firms manage risk, face emerging threats, run operations and create value over time. "In many respects, trust has become one of the most valuable assets any organisation can possess," he said.
"And trust today is increasingly built on transparency."
Climate change, tech disruption, demographic shifts, changing consumer tastes and demands for corporate accountability are all driving this change, according to Olowo. Sustainability reporting helps organisations spot and handle risks better while giving investors the facts they need for smart decisions, he noted.
Global money is flowing toward companies that show they're transparent, resilient and run responsible operations. This makes sustainability reporting the common language of international markets, Olowo said.
Nigerian firms hunting for overseas investment, foreign loans or roles in global supply chains will increasingly need credible sustainability disclosures to stay competitive. Companies that drag their feet until reporting becomes mandatory risk falling behind, he warned.
"The organisations that prepare early will have more time to build capacity, strengthen systems and position themselves competitively," Olowo said. "Those that wait until reporting becomes mandatory may find themselves playing catch-up."