The Executive Secretary/Chief Executive Officer of the Financial Reporting Council of Nigeria (FRC), Dr. Rabiu Olowo, has delivered a clear message to directors of Nigerian corporate firms that climate and sustainability governance is now a core fiduciary responsibility.

Dr. Olowo delivered this message on Wednesday, November 26, 2025, in Lagos,  in a welcome address during the Climate Governance Initiative (CGI) Nigeria Directors’ Engagement Series at Lagos Continental Hotel.

The theme of the series is “IFRS S1 and S2 – What Every Board Needs to Know.”

He said: “For boards, the message is clear: climate and sustainability governance is now a core fiduciary responsibility.

“Directors must ensure that sustainability disclosures are decision-useful, verifiable, comparable, and integrated with financial information. “This means strengthening internal processes, improving data quality, building capacity within management teams, and ensuring that risk management frameworks fully incorporate climate-related scenarios.”

He added: “It also means moving from symbolic commitments to measurable actions that reflect genuine board oversight and accountability.”

Dr. Olowo said that”today’s conversation is timely and strategic, as boards across the world navigate an increasingly complex corporate landscape—one where sustainability information is no longer peripheral but central to value creation and long-term resilience.

“I commend CGI Nigeria for bringing directors together to deepen understanding of IFRS S1 and IFRS S2, the two standards that are redefining global expectations around sustainability-related disclosures,” he said.

 The Executive Secretary of FRC also said that “as many of you are aware, Nigeria—through the Financial Reporting Council—was the first country in Africa to declare early adoption of International Sustainability Standard Board (ISSB) standards at CoP 27 at Sharm Sheikh in Egypt in 2022.

“We did not just declare and went to sleep, we swung into action by walking the talk with the creation of the Adoption Readiness Working Group (ARWG), a technical think tank, comprising of major stakeholders in Nigeria in Financial Reporting and Corporate Governance landscape.

“The entities such as Central Bank of Nigeria, Securities and Exchange Commission, Nigeria Exchange Group, Professional Accountancy Organizations (PAOs), the Big 4 Assurance firms, some premium board listed companies in Nigeria and independent sustainability and ESG professionals were co-opted into the Group.”

He explained that the Adoption Readiness Working Group worked tirelessly for eight (8) through virtual, physical meetings and a retreat to come up with the document known today as the Roadmap Report for Adoption of IFRS Sustainability Disclosure Standards in Nigeria.

“The effort has yielded exemplary results and delivered milestones in Nigeria, currently being modelled in Africa:

“Most recently, FRC won UNCTAD – ISAR Award in Sustainability Leadership Reporting in an event held at Palais des Nations, Geneva, Switzerland, the only African country to be so honoured”.

“FRC was the first country in Africa to declare early adoption of ISSB Standards at COP 27 in Egypt;

“Produced the first set of early adopting entities in Nigeria, “the first movers”, the likes of: MTN, Seplat Energy, Fidelity and Access Banks; “A set of voluntary Adopters (fast followers) are currently at various stages of their documentation to adopt ISSD IFRS S1 and S2; “Conducted more than 32 webinars, training, workshops and engagements towards advocacy for sustainability reporting; “Trained more than 168 entities with over 1,806 participants across the sector specific industry-wide trainings;

“Featured Nigeria in the recently released ISSB Global Reporting as one of the 17 Jurisdictional Profiles on Sustainability; “Strong partnership and collaboration with Nigerian Integrated Reporting Committee, ACCA, ICAN, ANAN, and other International Agencies (MOUs); including CGI Nigeria.”

Dr. Olowo highlighted that the FRC remains committed to supporting all institutions – listed, unlisted, premium-board companies and other public interest entities – in this transition. “We are deepening regulatory guidance, expanding stakeholder engagements, and working with partners such as CGI Nigeria to enhance the capacity of directors and preparers. Our goal is simple: to ensure that Nigerian companies are not just compliant, but leading, credible, and globally competitive in sustainability reporting.

“In closing, I urge every board represented here to view IFRS S1 and S2 not as regulatory burdens, but as strategic tools—frameworks that will help your organizations anticipate risks, seize new opportunities, and build trust with stakeholders.

“The future of business is sustainable, transparent, climate-conscious, and governed by data-driven decision making. Your leadership and insight will determine how well your organizations adapt, innovate, and succeed,” Dr. Olowo added.

In her welcome remarks, the Executive Director of CGI Nigeria, Mrs. Olawunmi Asekun, said the meeting ess to demystify what IFRS S1 and S2 is all about., adding that Nigeria faces sector wide exposure to climate risks in energy, agriculture, manufacturing, finance, infrastructure, etc.

Asekun said: “We provide NEDs with strategic guidance to manage this evolving landscape.” She added that IFRS S1 and S2 are transforming how companies disclose sustainability and climate information. “We equip boards to lead credible transition plann, risk oversight and scenario analysis.”

In her presentation, Partner and Head, Enterprise Risk and ESG, KPMG, Mrs. Tomi Adepoju, said that sustainability reporting has evolved into a global standard for corporate accountability, moving from voluntary to mandatory disclosures.

Adepoju also said directors must care because “sustainability reporting has strategic importance and regulatory momentum and directors must be actively involved to drive it.”

She said today companies across industries are expected to provide transparent information on their environmental, social and governance performance. She identified drivers of sustainability as investor expectations, evolving global risks and opportunities, stakeholders pressure and regulatory evolution.

Also, the Chairman of Nigerian Integrated Reporting Committee, Dr. Innocent Okwuosa, said that there is the need to take sustainability advocacy to the directors and the boards of corporate organizations because they are the ones that could make it possible for the implementation to hold.

Okwuosa said: “So they must be aware of the resources with which this implementation can be done.” He added that nothing would happen without the buy-in of the board.

“That is why we said that for us to realize the FIRS S1 and S2 the board must come on board,” Okwuosa said.

He said the board should appreciate that sustainability has evolved from being an act of CSR to a corporate strategy that shows how it is adapting to its business environment.

“All the issues we are talking about affects the business model, affects the value chain and affects how a firm should do business,” he said.

Okwuosa also said that sustainability should not be viewed from a risk perspective, as it embodied opportunities in the evolving consumer behavior, which is tilting toward low-carbon products.

He warned that companies that are not sensitive to these changes will exist in the past and continue to produce products that consumers would not accept.

The Financial Reporting Council of Nigeria (FRC) on Thursday, November 13, 2025, received the prestigious International Standards on Accounting and Reporting (ISAR) Honours from the United Nations Conference on Trade and Development (UNCTAD) Intergovernmental Working Group of Experts on Accounting and Reporting.
Interestingly, Nigeria was the only African country that was honored by the global body.

The feat was in recognition of the Dr. Rabiu Olowo-led Council’s exceptional leadership, groundbreaking reforms, and transformative contributions to advancing sustainability reporting and corporate transparency in Nigeria.

The award was presented to the Council during the ISAR Honours Celebration, which took place as part of the 42nd Session of the Intergovernmental Working Group of Experts on International Standards of Accounting and Reporting (ISAR), currently being held at the Palais des Nations, Geneva, Switzerland.
Nigeria was awarded based on the FRC’s leadership in developing a credible and globally aligned sustainability reporting framework, its multi-stakeholder engagement through the Adoption Readiness Working Group (ARWG), and its successful implementation of national reforms that positioned sustainability disclosure as a central pillar of Nigeria’s corporate governance and financial reporting system.

In addition, the award was a reflection of the impact of FRC in the sustainability reporting landscape not only in Nigeria but globally with the Adoption Readiness Roadmap being a template for other countries.

The endorsement of the National Roadmap for the Adoption of IFRS Sustainability Disclosure Standards (IFRS S1 and S2) by President Bola Ahmed Tinubu in 2024, played a pivotal role in advancing Nigeria’s sustainability reporting initiatives.

This endorsement not only reinforced the country’s commitment to adopting sustainability reporting but also translated Nigeria’s pledge made at COP 27 into concrete action.

Also, it underscored the government’s strong political will to integrate sustainability and climate-related reporting into Nigeria’s economic framework, aligning with global best practices.

To facilitate the successful implementation of these actions and build local capacity, the Council, under the leadership of Dr. Olowo, trained over 2,000 professionals. Additionally, it strengthened collaborations with international development partners, including the German Agency for International Cooperation (GIZ), to promote sustainable finance and support capacity development efforts.

Speaking after receiving the award, Dr. Olowo said: “This honour reaffirms Nigeria’s leadership in advancing sustainability and transparency. It reflects our collective commitment to building a trusted, globally competitive reporting environment that promotes accountability, responsible investment, and sustainable growth.”

The recognition at ISAR 42, which is still ongoing in Geneva, underscores Nigeria’s growing influence in shaping global sustainability reporting standards and highlights the FRC’s pivotal role in promoting transparency, responsible business conduct, and sustainable development across Africa.

Dr. Olowo, the Executive Secretary/CEO of the FRC, had on,Wednesday, 12 November 2025, formally concluded his tenure as Chair of the 41st Session of the United Nations Intergovernmental Working Group of Experts on International Standards of Accounting and Reporting (ISAR) at the United Nations Palais des Nations in Geneva, Switzerland.

Olowo had left a legacy of global impact at the UN body as Nigeria once again affirmed its leadership in advancing global financial and sustainability reporting standards.

The ceremony, which was marked by the conduct of the elections and formal handover of the ISAR Chairmanship, constituted the conclusion of a record milestone of remarkable achievements by the FRC boss.

Dr Olowo was in November 2024, elected as the Chair of the 41st session of the UNCTAD-ISAR.
The prestigious appointment was a testament to Dr. Olowo’s exceptional leadership and expertise in corporate reporting, which he had used in transforming and repositioning the FRC.

Nigeria has once again affirmed its leadership in advancing global financial and sustainability reporting standards as the Executive Secretary/CEO of the Financial Reporting Council of Nigeria (FRC), Dr. Rabiu Olowo, on Wednesday, 12 November 2025, formally concluded his tenure as Chair of the 41st Session of the United Nations Intergovernmental Working Group of Experts on International Standards of Accounting and Reporting (ISAR) at the United Nations Palais des Nations in Geneva, Switzerland.

The ceremony which is marked by the conduct of the elections and formal handover of the ISAR Chairmanship, constitutes the conclusion of a record milestone of remarkable achievements.

Dr. Olowo’s emergence and successful tenure as Chair of UNCTAD-ISAR stand as a historic milestone of leadership at that level of global corporate reporting discourse. His exemplary performance not only elevated Nigeria’s visibility within the United Nations system but also demonstrated the country’s capacity for thought leadership in financial and sustainability reporting. By delivering excellent results and upholding the highest standards of professionalism, younger professionals can aspire to and excel in similar international roles, reinforcing the message that competence, integrity, and dedication can position Nigeria prominently on the global stage.

In his address, Dr. Olowo described the past year as one of the most productive and strategically impactful in ISAR’s recent history, noting progress in global coordination, technical standard-setting, and capacity support to developing economies. He stated that the outcomes achieved during the period have set a new benchmark for future Chairs of ISAR.

During his tenure, ISAR advanced work across financial reporting, sustainability disclosures, ethics and assurance frameworks, digital reporting innovations, and MSME reporting development. He highlighted strengthened cooperation with international standard-setters such as ISSB, EFRAG, and IESBA, as well as improvements in the adoption of UNCTAD’s sustainability reporting taxonomy.

Dr. Olowo also cited Nigeria’s completion of a national corporate reporting assessment using the UNCTAD Accounting Development Tool (ADT), alongside the training of 59 professional accountants to support MSME reporting nationwide, a model now being referenced for adaptation in other developing jurisdictions.
He recalled representing ISAR at the UN ECOSOC Coordination Segment in New York, where ISAR contributed input to UN policy discussions on financing sustainable development, thereby strengthening ISAR’s visibility across the UN system.

He expressed confidence that the 42nd Session will consolidate progress and expand work into emerging areas including biodiversity, human capital, and digital transformation.

The Financial Reporting Council (FRC) of Nigeria announced on Tuesday plans to formally integrate Islamic Finance Services into the country’s financial reporting framework by adopting the standards issued by the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI).

The Executive Secretary/CEO of the FRC, Dr. Rabiu Olowo, disclosed this in Lagos, in his address at the 7th Africa Islamic Finance Conference.

According to Olowo, the move aligns with FRC’s statutory responsibility to set, monitor, and enforce financial reporting standards in Nigeria.

He pointed out that the FRC Act empowers the Council not only to adopt the International Financial Reporting Standards (IFRS), which currently form the backbone of Nigeria’s reporting framework, but also to incorporate other recognized international accounting and reporting standards when necessary.

Olowo said the decision follows the rapid expansion of Islamic Finance Services in the country over the past decade, with significant growth recorded in Islamic banking, Sukuk issuances, Takaful insurance, and non-interest capital market products.

“This sector has become a dynamic contributor to financial inclusion, infrastructure financing, and ethical investment alternatives. However, this growth brings with it the obligation for regulators to ensure that financial reporting for Islamic Finance Services is consistent, reliable, and globally comparable,” he stated.

Speaking further, the FRC boss explained that the proposed adoption of AAOIFI standards would complement existing IFRS practices, maintaining Nigeria’s alignment with global standards while offering a dedicated framework tailored to the unique contracts and financial instruments used in Islamic finance.

“By aligning with AAOIFI, Nigeria will not only strengthen transparency and accountability in Islamic financial reporting but also enhance investor confidence and global comparability,” Olowo added.

Commenting further on the need for AAOIFI Standards, he listed the benefits to include: “Specialization: AAOIFI standards are developed specifically for Islamic Finance institutions, addressing areas such as Murabaha, Ijarah, Mudarabah, Musharakah, and Sukuk.

“Global Recognition: Many jurisdictions with vibrant Islamic Finance sectors—including in the Middle East, Asia, and parts of Africa—already adopt or align with AAOIFI standards

“Market Confidence: Their adoption will enhance investor confidence, ensure transparency, and improve comparability for both domestic and international stakeholders.

“Complementarity: AAOIFI does not replace IFRS but fills the gap where IFRS does not adequately capture Shari’ah-compliant transactions.”

Olowo revealed that: “The Council has already commenced work in this area by: Building internal capacity within our directorates to understand and implement AAOIFI standards; Stakeholders Engagement—banks, insurance operators, capital market regulators, scholars, and professional bodies—to ensure inclusiveness.

“Setting up of TWG-This group to be drawn from Regulators, Operators representing each part of Financial sector to give direction for implementation. Phased adoption strategy—to ensure smooth transition and alignment with existing IFRS reporting practices. Collaboration with AAOIFI and other standard-setters for technical assistance and knowledge exchange/capacity building.

 “We recognize that successful adoption and implementation of AAOIFI standards in Nigeria cannot be achieved by the Council alone. It requires partnership with industry players, scholars, regulators, professional accountants, and development partners. Therefore, we use this conference as an opportunity to invite all stakeholders to join hands with the FRCN in shaping a robust, credible, and inclusive financial reporting framework that fully accommodates Islamic Finance Services.

 “Nigeria’s financial system is evolving, and our regulatory framework must evolve with it. The inclusion of AAOIFI standards into our national framework is not just a regulatory necessity—it is a strategic imperative for building trust, enhancing transparency, and ensuring that Islamic Finance continues to contribute meaningfully to economic growth and financial inclusion.”

Vice President Kashim, Shettima, who was represented by the Special Adviser to the President on Economic Affairs, Dr. Tope Fasua in his address said: “Islamic finance has emerged as a powerful ally because the system framework is rooted in ethics, fairness and shared prosperity. He also stated that true measure of prosperity lies in inclusion and that prosperity must be shared and sustained.

Also speaking at the conference, His Royal Highness, Muhammadu Sanusi, 14th Emir of Kano, and former Governor of Central Bank of Nigeria (CBN), expressed pleasure to see the industry grow, looking back at where it actually started in Nigeria.

“We are beginning to see geometric growth in the number of banks that have been licenced and the number that have applied for licences,”  he added.

The Emir pointed out that Islamic financing could be defined in terms of shared prosperity and inclusivity, noting that Islamic finance was about simple commonsense.

“It has a very simple and clear definition of what exactly is lending and what is business. Commonsense says you borrow when you have a need to fulfill but do not have resources. But if you have millions and want to invest in factory or other businesses you are not borrowing but looking for investors to partner to make investment.

“Once we understand this we will understand the difference between Islamic finance and conventional finance. People who want to grow an economy, move out poverty and set up MSMEs do not go on borrowing they go round looking for people who are ready to partner with them by either providing them the funds, equipment, labour and they share the profit.

“Every Islamic banking transaction is a business partnership. Now to speak about growth and inclusivity: There are two ways to look at an economy: You can look at the economy from the perspective of GDP, inflation numbers and so on and these are beautiful statistics and are important.

“But unfortunately too often looking at these big numbers we lose sight of small numbers that are absolutely crucial. A GDP growth of 5 or 6 per cent looks good. But you can actually have majority of the people getting poorer while the GDP is growing. Inflation may come down but the items consumed by the poor such as basic drugs and foods may be getting out of reach of the poor.

“So, the first thing is that if we are dealing with inclusivity this is where IF has to come in. Islamic Financial Institutions (IFIs) need to go to the bottom of the pyramid. You cannot talk about inclusivity if you are not where the people are. Sitting in Abuja or Lagos and booking loans do not improve the lives of those in the rural areas and small towns and these are the majority of Nigerians that need support: mechanics, tailors, etc … these small enterprises that employs 70 per cent of our population. Until we begin to grow those we are not going to have a growth that is inclusive.

“My first suggestion to all IFIs here is let us try strategically to target SMEs in locations that already do not have access to finance. That is the only way Islamic finance can contribute to shared prosperity.”

In his contribution, President/CEO African Finance Corporation, Samaila Zubairu said: “We need to have a way to inclusive growth and the inclusivity is at the bottom of the pyramid. I think that you need to be more creative. Imagine if we can provide that finance ethically, inclusively and sustainably which is the promise of Islamic finance.

“Islamic financing in its core invests in real assets like roads, power plants, water and digital networks. In Nigeria for instance, if we have constant access to electricity will easily give $1 trillion economy. And if you go beyond that and try to do import substitution you will see that grow to $2 trillion economy. And Islamic finance has a critical role to play there because it is asset backed financing. It is an investment in productive assets.

“Islamic financing fits perfectly to infrastructure finance than any other institution because it is built on truth where every financing is tied to a real tangible asset that create jobs and longtime value.”