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.”

The Financial Reporting Council (FRC) Nigeria proudly celebrates the second anniversary of Dr. Rabiu Olowo’s appointment as Executive Secretary/CEO. Since his appointment by President Bola Ahmed Tinubu on October 12, 2023, Dr. Olowo has led the Council through a period of remarkable transformation, innovation, and global engagement, positioning the FRC as a leader in financial reporting, corporate governance, and regulatory excellence.

Driving the DOSE Agenda: Two Years of Impact

Under Dr. Olowo’s visionary leadership, the FRC has advanced its “DOSE” framework – Digitisation, Operational Excellence, Stakeholder Engagement, and Enforcement, in line with the Renewed Hope Agenda of Mr. President, Asiwaju Bola Ahmed Tinubu, GCFR, delivering measurable progress across key regulatory and developmental priorities.

1. Actuarial Standards Development and Talent Pipeline Growth
2. Established the Nigerian Actuarial Development Programme (NADP) and the Technical Working Group to foster actuarial growth in Nigeria
3. Adopted International Standards of Actuarial Practice (ISAPs 1–8) of the International Actuarial Association and initiated localization as Nigeria Standards of Actuarial Practice (NSAPs).
4. Issued Nigeria’s first-ever comprehensive Actuarial Regulatory Framework (Actuarial Practice Regulation – NAPR 2025) as an Exposure Draft.
5. Launched nationwide actuarial education initiative, engaging 5,000 university and 800 secondary students.
6. Sponsored six university students to undertake Society of Actuaries (SOA) professional examinations and an additional candidate for an MSc in Actuarial Science, fostering the development of future actuarial professionals.
7. Strengthened partnerships with NAICOM, PENCOM, NHIS, NAS, IFoA (UK), SOA (USA), CAS (USA), TASK (Kenya), and IAA.
8. Initiated integration of Actuarial Science into Nigeria’s secondary school curriculum.

• Strengthening Audit Regulation, Standards, and International Collaboration
• Conducted the first comprehensive practice reviews across 16 audit firms, including the Big Four, covering 143 audit engagements.
• Introduced the NOCLAR framework (FRC Rule 14), aligned with international standards, aimed at enhancing the responsibilities of external auditors for their clients in cases of non-compliance with laws and regulations to uphold the integrity of financial reporting and protect public interest.
• Commenced the Implementation and enforcement of ICFR guidance
• Hosted Inaugural Leadership Summit for Auditors with over 764 participants in attendance.
• Signed an MOU with the Financial Reporting Oversight Board (FROB) of The Gambia to foster African regulatory collaboration.
• Advanced the UK and Nigeria Enhanced Trade and Investment Partnership (ETIP) to achieve Regulatory Equivalence, and mutual recognition of audit qualifications with FRC UK.
• Held Joint international training with Audit Committee Institute (ACI) with other International Audit regulators like PCAOB (USA), IRBA (South Africa), and ICAG (Ghana) made presentations.
• Held sensitisation sessions with 897 practitioners and convened the first FRC–ICAN–ANAN meeting.
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• Governance Framework Development and Stakeholder Institutionalisation:
• Developed two landmark codes — the Nigeria Public Sector Governance Code (NPSGC) and the Not-for-Profit Governance Code (NNFGC), currently awaiting Ministerial approval.
• Engagements with top national institutions, including the Judiciary, Accountant-General, Auditor-General, and Governors’ Forum, fostering multi-sector adoption of governance reforms.
• Engaged NJC, OAGF, OAuGF, HoS, and NGF to develop NPSGC roadmap (2026–2029).
• Finalized NNFPGC communication strategy, awaiting Ministerial approval.
• Partnered with ACCA to train stakeholders on governance and audit regulation.
• Completed and issued the Small and Medium Enterprises Corporate Governance Guidelines (SME CCG)
• Promoted adoption of SME-CGG and Business Integrity Certification (BIC) to improve corporate ethics and sustainability.
• Promotion of Corporate Governance for MSMEs, through partnerships with LCCI and Integrity Organisation Ltd., linking governance to small business resilience and certification.

• Strengthening Sustainability Reporting and Global Alignment
• Secured the commitment of President Bola Ahmed Tinubu, GCFR, along with the immediate past Minister of Industry, Trade and Investment, Dr. Doris Uzoka-Anita, for the adoption of IFRS S1 and S2 sustainability standards in Nigeria.
• Launched the roadmap for the adoption of sustainability reporting standards in Nigeria in collaboration with the ISSB Chairman. 
• Sustained Leadership in Sustainability Reporting Adoption: Led early adoption of ISSB’s IFRS S1 and IFRS S2 standards for two consecutive reporting cycles (2023 and 2024) by Access, Fidelity, MTN and Seplat Energy, positioning Nigeria among global front-runners in sustainability disclosure compliance.
• Secured landmark collaborations and MOUs with international institutions such as NIRC, GIZ (Germany), Financial Sector Deepening Africa (FSDA), Pan African Federation of Accountants (PAFA), and the ISSB, ensuring technical alignment and cross-border recognition.
• Growth in Voluntary Adoption: The number of Nigerian entities applying ISSB’s IFRS S1 and S2 standards increased from 4 in 2024 to 35 by October 2025, signaling rapid national acceptance.
• Hosted 2nd Regulatory Roundtable on Sustainability Reporting (August 2025).
• Capacity Building and Advocacy: Over 202 entities and 1,705 professionals received hands-on training on sustainability disclosure standards through 32 sector-specific engagements and regulatory roundtables.

• Strengthening MSMEs on Accounting & Financial Reporting
• Collaborated with the United Nations Conference on Trade and Development (UNCTAD) to organize a Train-the-Trainers Workshop on Accounting and Financial Reporting for MSMEs, building national capacity for simplified financial reporting and record-keeping.
• Established a pool of certified trainers to cascade training on accounting and financial reporting nationwide, improving SMEs’ access to finance and compliance with international reporting standards.

• Establishing Robust Valuation Standards and Capacity Building
• Establishment of the Technical Working Group (TWG) for the development of the Valuation Regulations and secured Nigeria’s membership of the International Valuation Standards Council (IVSC).
• Strengthened global cooperation through IVSC membership.
• Developed and publicly exposed Nigeria’s first Valuation Regulations.
• Conducted nationwide training in four geopolitical zones, reaching over 200 professionals, while over 923 stakeholders were engaged.
• Published and distributed the Valuation Guide nationwide.

• Operational Excellence and Digital Transformation
• Achieved the full complement of the seven (7) Directorates by making functional the Directorate of Valuation Standards and the Directorate of Actuarial Standards, and the establishment of the Sustainability Reporting Unit.
• Established the Islamic Financial Services Department for regulatory oversight of non-interest financial services.
• Integrated FRC’s database with the National Identification Number (NIN) verification system for enhanced data integrity.
• Development of Nigeria’s first National Repository Portal for audited financial statements — a centralised digital database enhancing transparency, analytics, and regulatory oversight.
• Implemented a Document Management System and Learning Management System (LMS) to digitize workflows and staff training. 
• Strengthened FRC visibility and credibility through structured stakeholder engagement, proactive communication, and consistent publication of the FRC Newsletter (maiden and second editions, 2024 & 2025 editions, ISSN: 3092-9520).
• Launched Nigeria’s first Journal of Financial Reporting and Corporate Governance, positioning FRC as a national thought leader and creating a dedicated platform for research-driven policy, professional discourse, and stakeholder education.
• Increased compliance participation with 31,799 professionals, 715 firms, and 14,657 companies registered within two years.
• Achieved over 60 per cent staff engagement, resulting in measurable improvements in welfare, professional development, and organisational performance.
• Enhanced FRC technical capacity through professional development of FRC staff both locally and internationally.
• Cleared all outstanding employee gratuity claims and severance packages, thereby ensuring financial closure.

Looking Ahead

As Dr. Olowo marks his second anniversary, the FRC remains committed to its mandate of promoting transparency, accountability, and global best practices in financial reporting, auditing, and corporate governance. The Council extends its gratitude to all stakeholders, partners, and staff whose dedication has made these achievements possible.

“These milestones reflect our collective resolve to position Nigeria as a beacon of regulatory excellence and innovation in Africa and beyond. I am deeply grateful for the support of our stakeholders and the commitment of the FRC team. Together, we will continue to drive transformation and uphold the highest standards of integrity and professionalism,” said Dr. Rabiu Olowo, Executive Secretary/CEO.

The Financial Reporting Council (FRC) of Nigeria has underscored the essential role of ethical leadership among professional accountants as the foundation of national trust, economic stability, and sustainable development. This message was delivered by the Executive Secretary/CEO, Dr. Rabiu Olowo – ably represented by Mr. Titus E. Osawe, Coordinating Director, Directorates of Corporate Governance and Inspections & Monitoring—during the second plenary session of the 55th Annual Accountants’ Conference of the Institute of Chartered Accountants of Nigeria (ICAN), held in Abuja.

The session, themed “Ethical Leadership: Strengthening Professional Accountants for Economic Transformation,” formed a key part of the conference’s broader focus on “Building Resilience – Aligning Reforms for Nigeria’s Development.” Dr. Olowo’s address challenged accountants to see themselves not just as compliance officers, but as custodians of truth, stewards of public trust, and sentinels of corporate accountability who must lead with both competence and conscience.

“Ethical leadership is not just about compliance; it is about doing what is right even when no one is watching,” Dr. Olowo emphasized. “In the accounting profession, ethics is not optional; it is the soul of trust and the lifeblood of economic credibility.”

He warned that the absence of ethics in financial systems can have disastrous consequences—turning financial statements into fiction, eroding investor confidence, and undermining the legitimacy of public institutions. Drawing from global and local scandals, Dr. Olowo highlighted how ethical lapses can destroy institutions, scare away investment, and threaten the very fabric of economic progress.

FRC’s Commitment to Ethical Standards and National Development

Dr. Olowo outlined how the FRC is institutionalizing ethics in Nigeria’s financial and corporate ecosystem through a multi-pronged approach:

• Issuance of Standards and Codes: Implementing frameworks like the Nigerian Code of Corporate Governance (NCCG 2018), Audit Regulations (2020), and International Financial Reporting Standards (IFRS) to embed transparency and accountability.
• Registration and Oversight: Licensing only those professionals and firms who meet strict ethical and professional standards.
• Investigations and Disciplinary Processes: Acting swiftly against professional misconduct to sustain public trust.
• Whistleblower Framework: Encouraging the reporting of unethical conduct to reinforce transparency and deter malpractice.
• Adoption of Sustainability Reporting Standards: Promoting ESG transparency and combating greenwashing through the International Sustainability Standards Board (ISSB) guidelines.
• Public Sector Reforms: Collaborating with the Office of the Accountant-General and implementing International Public Sector Accounting Standards to improve fiscal transparency.
• Capacity Building and Advocacy: Conducting ongoing training, advocacy, and stakeholder engagement to nurture ethically grounded professionals.

Ethics at the Heart of Economic Transformation

Dr. Olowo stressed that reliable, ethical financial reporting reduces information asymmetry, enhances investor confidence, and enables efficient capital allocation. In the public sector, it strengthens fiscal transparency and public trust, ensuring prudent management of national resources.

He also addressed the emerging ethical challenges in the digital era, including artificial intelligence, data misuse, crypto assets, and ESG misreporting. “Algorithms cannot replace ethics,” Dr. Olowo cautioned, urging accountants to ensure technology serves integrity above convenience.

Looking Ahead: FRC’s Strategic Priorities

The FRC’s ongoing and future initiatives include:

• Introducing Codes of Corporate Governance for the Public and Not-for-Profit Sectors
• Embedding ethics into evolving corporate reporting frameworks
• Enhancing real-time regulatory enforcement through digital platforms
• Expanding collaboration with global and regional regulators to strengthen cross-border ethical compliance

Dr. Olowo concluded by reminding accountants of their pivotal role in shaping Nigeria’s future:

“Ethical leadership is not a constraint on profit; it is the foundation of sustainable growth. Resilience without ethics is hollow. For Nigeria to unlock its full potential, our economic reforms must be anchored on moral reforms. We must build not only wealth but trust, and lead not only with skill, but with character.”

As the 55th ICAN Annual Accountants’ Conference brought together leaders, policymakers, and regulators, the FRC’s message was clear: the path to national development, economic transformation, and restored public trust is paved with ethical leadership—today and always.