Onome Amuge
The Securities and Exchange Commission (SEC), Nigeria’s capital market regulator, is preparing to adopt international sustainability disclosure standards, but in a phased manner designed to balance global investor expectations with the domestic capacity of listed companies.
Emomotimi Agama, director general of the SEC, said at an investors’ roundtable in Lagos that the regulator would not take a “copy-and-paste” approach to the International Sustainability Standards Board (ISSB) framework, which was recently endorsed by the International Organization of Securities Commissions (IOSCO).
“Nigeria is particularly vulnerable to climate change and is simultaneously pursuing an ambitious sustainable finance agenda. But we must ensure that implementation is proportionate to the realities of our market,” Agama said.
The ISSB, launched in 2021 under the IFRS Foundation, has emerged as the global baseline for sustainability and climate-related disclosures, with more than 130 jurisdictions considering adoption. IOSCO has urged regulators to embed the standards quickly to build a common language for investors assessing long-term risk.
Agama outlined four pillars of the commission’s approach including: capacity building for issuers, auditors, and preparers to ensure readiness; phased implementation, beginning with larger listed entities before expanding; a strong assurance framework to verify disclosures; and alignment with local realities to ensure the standards are proportionate.
“This is no longer a question of if, but of how and when. Adopting the ISSB standards signals to international investors that Nigeria is serious about transparency, governance, and managing long-term risk. It enhances the attractiveness of our capital market,” the SEC DG said.
Sustainability disclosure is becoming an increasingly decisive factor for capital flows. Global asset managers, particularly those with environmental, social and governance (ESG) mandates, have pushed emerging markets to improve data quality and comparability. Without reliable disclosures, investors face higher risks in pricing assets.
Analysts note that Nigeria’s phased approach could avoid pitfalls seen in other jurisdictions where smaller companies struggled to meet the costs of compliance. At the same time, the regulator must contend with Nigeria’s structural challenges, including limited expertise in sustainability reporting, weak corporate governance in parts of the private sector, and the economic pressures of inflation and currency volatility.
Still, Agama argued that the benefits outweigh the risks. “The case for adoption is clear: global comparability, investor trust, managing systemic risk, and reducing complexity. The ISSB has provided the lexicon for a sustainable global economy. IOSCO has called us to speak about it. At SEC Nigeria, we have answered that call,” he said.
By signalling alignment with global standards while tailoring the rollout to local conditions, Nigeria hopes to reassure foreign investors and mobilise long-term capital, particularly in sectors such as energy transition, infrastructure, and sustainable agriculture.
“The global perspective is one of unity and decisive action. By adopting the ISSB standards, we are not just complying with a global trend; we are actively building a more stable, transparent, and sustainable financial future for Nigeria, for Africa, and for the world,” Agama noted.
