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The Securities and Exchange Commission (SEC) has announced plans to adopt the global sustainability disclosure standards developed by the International Organisation of Securities Commissions (IOSCO). The move is expected to strengthen investor confidence, promote transparency, and improve the competitiveness of Nigeria’s capital market.
The Director-General of SEC, Dr. Emomotimi Agama, disclosed this over the weekend at an investors’ roundtable on the International Sustainability Standards Board (ISSB). He explained that Nigeria played a role in the development of the standards through its participation in IOSCO’s task force and is therefore well positioned to embrace the framework.
Agama noted that the Commission would adopt a phased approach rather than enforcing a blanket implementation across all market participants. According to him, the staged adoption is necessary to allow market operators and companies time to build capacity and adjust to the new requirements.
“This means capacity building, working with issuers, auditors, and preparers to ensure they understand and are ready for the new requirements; phased implementation, perhaps beginning with larger, listed entities before expanding to others; and developing a robust assurance framework to verify disclosures,” the SEC boss said.
The IOSCO-endorsed standards are designed to provide uniform sustainability reporting guidelines for companies across different markets, thereby allowing investors and regulators to compare performance more effectively. Nigeria’s adoption is expected to align the country with international best practices while positioning the capital market as a more attractive destination for foreign and domestic investors.
Dr. Agama stressed that the standards were no longer optional but necessary for Nigeria to remain relevant in the global financial landscape. “The case for adoption is clear: for global comparability, for investor trust, for managing systemic risk, and for reducing complexity. This is no longer a question of if, but of how and when,” he said.
He assured stakeholders that SEC would continue engaging with issuers, professional bodies, and regulators to ensure smooth implementation. The Commission is also working closely with IOSCO’s wider network to learn from other markets that are already ahead in implementing the framework.
Analysts believe the decision to adopt sustainability disclosure standards is timely, especially as global investors are increasingly demanding transparency on environmental, social, and governance (ESG) factors before making investment decisions. For Nigerian companies, the transition may require additional investment in data gathering, audit systems, and training, but the long-term benefits include improved investor trust, reduced regulatory uncertainty, and better access to global capital flows.
Market experts have also noted that starting with larger listed companies will allow Nigeria to test the framework, address gaps, and provide a learning curve for smaller entities before they are brought under the same reporting obligations. This, they say, could prevent shocks to smaller businesses that may lack the resources to comply immediately.
The SEC’s initiative aligns with the Federal Government’s broader economic reform agenda, which seeks to attract foreign investment, diversify revenue sources, and reduce Nigeria’s risk exposure in international markets. It also mirrors growing commitments by African regulators to adopt global standards that improve market credibility.
With Nigeria’s phased approach, the capital market is set to witness an important shift toward sustainability-driven reporting, aligning with global trends that prioritise accountability and long-term value creation.
