‘NGX RegCo has agreed to promoteTinuade Awe, NGX Regulation’s Chief Executive Officer
NGX Regulation Limited (NGX RegCo) has reaffirmed its commitment to maintaining the nation’s capital market as transparent, honest, and well-organized as possible, as well as one that thrives on timely information.
Ms. Tinuade Awe, Chief Executive Officer of NGX RegCo, stated at the launch of the first two IFRS Sustainability Disclosure Standards (IFRS S1 and IFRS S2 Standards), in collaboration with the Financial Reporting Council (FRC) of Nigeria and the International Sustainability Standards Board (ISSB), that the regulation would continue to ensure that the market thrives on complete and timely information to protect investors.
Nigeria has become the first African country to adopt the standards as a consequence of the inauguration, which took place at the Nigerian Exchange Group House in Lagos. These requirements were also made public in six of the world’s most prominent financial centers, including New York, London, Frankfurt, Singapore, and Montreal.
According to Awe, the implementation of the sustainability standard is critical for the expansion of Nigeria’s capital market because it will provide firms in the country with a global benchmark against which to measure their sustainability reports.
She also stressed the importance of publicly traded enterprises adhering to the norm in order to function in accordance with worldwide standards of excellence.
The publication of the standard, according to Ambassador Shuaibu Adamu, Executive Secretary of the FRC, is a tribute to the country’s ongoing commitment to ethical and sustainable business practices.
According to him, the international community’s approval of the standards has strengthened the country’s position as a global leader in sustainability reporting.
“In today’s world, there is a growing global investor base that is concerned with environmental, social, and governance issues, and these funds represent more than $2 trillion in total assets managed by global institutional investors.” A nation or institution will never be able to successfully recruit or accept private investment resources if it is not recognized as being committed to climate change and sustainable development. As a result, Nigeria is compelled to compete with the rest of the world for this private money.
It should come as no surprise that the Nigerian Stock Exchange (NGX) provides an excellent venue for attracting this capital. “Comprehensive, comparable, and transparent information about sustainability and climate-related risks and opportunities will play an essential role in appropriately pricing these risks and opportunities and unlocking the needed private capital flows,” Adamu added. “These risks and opportunities will be critical in properly pricing these risks and opportunities.”
The launch of the ISSB Standards in Nigeria, according to the Director-General of the Securities and Exchange Commission (SEC), Lamido Yuguda, who was represented by the Executive Commissioner, Operations, Dayo Obisan, shows that the country is ready to embrace sustainability as a core value in financial reporting practices. Dayo Obisan attended the launch event.
“This sends a strong message to the world that Nigeria is committed to transparent and responsible business practices that prioritize environmental stewardship, social well-being, and good governance,” he added. “This demonstrates that Nigeria is serious about its commitment to transparent and responsible business practices.”
According to Emmanuel Faber, Chair of the International Sustainability Standards Board (ISSB), the lack of comparability and ambiguity among the various standards and frameworks currently available has hampered the effectiveness of reporting and the efficiency of capital markets.
Faber also stated that the guidelines are beneficial to investors and cost-effective for journalists. He also stated that companies that use IFRS 1 and 2 to engage with investors will have a competitive advantage in terms of funding.
Lamido Yuguda NGX RegCo attempts to persuade the public in this post that a transparent and orderly market is desirable.