FRC Deepens Governance Reforms, Sustainability Reporting Drive

By Abubakar Yusuf

The Financial Reporting Council of Nigeria (FRC), under the leadership of its Executive Secretary, Dr Rabiu Olowo, has intensified efforts in sensitisation, collaboration and partnership to strengthen sustainability reporting and promote local and global alignment.

The council has undertaken a series of reforms, initiatives and engagements with key national institutions, including the Judiciary, Office of the Accountant-General, Office of the Auditor-General and the Governors’ Forum, to foster multi-sectoral acceptance of governance reforms.
As part of its sustainability reporting efforts, institutions including the National Judicial Council (NJC) and the Head of the Civil Service have been engaged in efforts to develop the Nigeria Public Sector Governance Code (NPSGC) within three years, covering 2026–2029.
In adapting to governance framework development and stakeholder institutionalisation, the council has advanced two landmark codes: the Nigeria Public Sector Governance Code (NPSGC) and the Not-for-Profit Governance Code (NNFPGC), which are undergoing approval processes.
To consolidate the new order, the council conducted sensitisation sessions involving 897 practitioners and convened the first Financial Reporting Council (FRC), Institute of Chartered Accountants of Nigeria (ICAN) and Association of National Accountants of Nigeria (ANAN) session.
This paved the way for the council to finalise the NNFPGC communication strategy in partnership with ACCA to train stakeholders on governance and audit regulations.
Further to this, the council completed and issued the Small and Medium Enterprises Corporate Governance Guidelines (SME-CGG), while promoting the adoption of SME-CGG and Business Integrity Certification (BIC) to improve corporate ethics and sustainability.
The council also promoted corporate governance for Micro, Small and Medium Enterprises (MSMEs) through partnerships with the Lagos Chamber of Commerce and Industry (LCCI), Integrity Organisation Limited and others, linking governance with small business resilience.
To strengthen sustainability reporting, the council secured the commitment of President Bola Ahmed Tinubu under the Renewed Hope Agenda, which led to the adoption of IFRS S1 and S2 sustainability standards in Nigeria.
The reforms also launched a roadmap for the adoption of sustainability reporting standards in Nigeria in collaboration with relevant bodies.
The early adoption of the ISSB’s IFRS S1 and IFRS S2 standards for two consecutive reporting cycles in 2023 and 2024 by banks and multinationals such as Access, Fidelity, MTN and Seplat Energy positioned Nigeria among global front-runners in sustainability disclosure compliance.
The council also secured landmark collaborations and Memoranda of Understanding (MoUs) with international institutions, including NIRC, GIZ Germany, Financial Sector Deepening Africa (FSDA), Pan-African Federation of Accountants (PAFA) and the ISSB, ensuring technical alignment and cross-border recognition.
The number of Nigerian entities voluntarily applying ISSB’s IFRS S1 and S2 standards increased from four in 2024 to 35 by October 2025, signalling rapid national acceptance.
This was in addition to hosting the second regulatory roundtable on sustainability reporting in August 2025 to encourage further adoption.
The council has also strengthened capacity building and advocacy, with more than 202 entities and 1,705 professionals receiving hands-on training on sustainability disclosure standards through 32 sector-specific engagements and regulatory roundtables aimed at enhancing mass participation in the new approach.