The Securities and Exchange Commission (SEC) has announced plans to drive the adoption of International Sustainability Standards Board (ISSB) disclosure frameworks in Nigeria.

According to SEC Director-General Dr. Emomotimi Agama, aligning with global standards will strengthen market transparency, reduce information risk, and attract international capital flows into Nigeria’s capital markets.

Agama noted that SEC is committed to positioning Nigeria’s capital market in line with the global baseline set by the ISSB, which operates under the International Financial Reporting Standards (IFRS) Foundation.

“This move is critical for building investor confidence, lowering the cost of capital for issuers, and making Nigerian securities more attractive to global institutional investors and development finance institutions.” He said.

The adoption roadmap outlines a phased approach, starting with voluntary adoption by early adopters and large public interest entities before transitioning to mandatory adoption.

The timeline for mandatory adoption is set for 2027 for significant public interest entities, 2028 for other public interest entities, and 2030 for small and medium enterprises.

Agama emphasized that full adoption of ISSB’s IFRS S1 and S2 standards will deepen the Nigerian capital market, boost its credibility, and stimulate product innovation, including green bonds, sustainability-linked bonds, and transition sukuk.

These products will diversify the market’s offerings, enhance liquidity, and improve Nigeria’s eligibility for major global indices.

According to the DG, SEC is working closely with the Financial Reporting Council of Nigeria and the Nigerian Exchange Limited to ensure a smooth transition to the new standards.

This includes developing phased assurance requirements and taxonomy-enabled digital reporting systems to enable machine-readable disclosures and improve investor access to sustainability information.

By adopting ISSB-aligned disclosure frameworks, Nigeria aims to position itself as a credible destination for responsible investment capital and support inclusive economic growth.

The SEC’s commitment to building a transparent, resilient, and globally competitive market will open Nigerian issuers to larger pools of long-term capital, strengthen investor trust, and solidify the SEC’s role as an enabler of market development.