The Governor of the Central Bank of Nigeria, Olayemi Cardoso announced that the Nigerian banking and financial system are currently benefiting from the implementation of the International Financial Reporting Standards.
This was disclosed by Cardoso at the opening of the Regulatory Roundtable on the Implementation of ISSB’s Sustainability Standards in Nigeria, which was organized by the Financial Reporting Council (FRC) of Nigeria, in Abuja, on Thursday, according to Arise News.
Cardoso, represented by the CBN Deputy Director, Payments System Policy and Oversight Function, Dr. Musa Jimoh stated that over time, foreign investments and credit facilities had become more integrated into the system.
The IFRS are accounting standards issued by the IFRS Foundation and the International Accounting Standards Board (IASB), and constitute a standardised way of describing the company’s financial performance and position so that company financial statements are understandable and comparable across international boundaries.
They are especially important for businesses whose stocks are publicly listed.
Cardoso emphasized that these reporting standards have made it possible for Nigerian businesses to produce financial statements that are competitive on a global scale, a development that has continued to draw in foreign investment for the country’s economy.
He expressed optimism that the nation would see the same level of success with the planned adoption of IFRS S1 and S2.
Essentially, IFRS S1 applies to sustainability-related financial disclosures while IFRS S2 Climate-related Disclosures sets out specific climate-related disclosure requirements for a company to disclose information about its climate-related risks and opportunities.
According to him, the CBN continues to be at the forefront of ensuring that banking industry operators disclose adequate information.
He further said that this kind of disclosure ensures that organizations provide all pertinent financial data to the stakeholders in a transparent manner.
“It is only a transparent and regulated framework that supports confidence in the system”, adding that financial integrity will boost confidence between regulators, investors and the public,” he stated.
The CBN governor, however, tasked the regulators including the FRC that in setting an adoption roadmap for the implementation of the sustainable financial standards, apparent challenges should be considered.
Meanwhile, Executive Secretary/Chief Executive, FRC, Dr. Rabiu Olowo stated the discussion was important and timely, given that the regulators are starting a crucial mission to integrate sustainability reporting into the nation’s commercial operations.
He noted that by accepting the ISSB standards, Nigeria has demonstrated leadership in Africa and that collaboration was essential to the standards’ successful implementation.
Olowo said the ISSB framework offered a groundbreaking approach for organisations to disclose climate-related risks and opportunities, enhancing transparency, consistency, and informed decision-making.
He said by embracing these standards, “we can unlock capital investments, stimulate innovation, and safeguard our environment for future generations.”
