Nigeria faces the potential loss of $20 billion in cocoa exports within the next three years if it fails to comply with sustainability reporting standards, according to Dr Rabiu Olowo, Executive Secretary/Chief Executive of the Financial Reporting Council (FRC) of Nigeria.
Olowo emphasized the importance of adhering to these standards during a visit by the House of Representatives Committee on Commerce, led by Chairman Hon. Ahmed Munir, to the FRC head office in Abuja.
Olowo stressed that Nigeria must meet processing and reporting expectations to maintain its competitiveness in the global cocoa market.
“If you don’t pay attention to deforestation and other environmental issues, your products may no longer be competitive. And that is the real issue,” he said.
He said the FRC’s mission is to instil confidence in investors by ensuring quality in accounting, auditing, actuarial, valuation, and corporate governance standards.
Olowo highlighted the significant implications of sustainability reporting on how businesses operate concerning environmental, social, and governance (ESG) standards.
He noted that companies must not only focus on profit but also consider their impact on the planet, as “without the planet, there will be no business.”
To address this, he said the FRC is developing a Sustainability Adoption Roadmap, which will guide corporate Nigeria in transitioning to International Sustainability Standards Board (ISSB) standards.
He stated that although Nigerian companies have until 2028 to fully comply, four firms have already emerged as early adopters.
”Voluntary adoption of sustainability reporting is encouraged until 2026,” he further stated.
Olowo also mentioned that the council plans to engage in extensive capacity building and advocacy over the next two years to promote the adoption of sustainability standards.
On his part, Hon. Munir stated that the committee’s visit aimed to understand the operations and policies of the FRC, identify challenges, and explore areas where parliamentary support could help the council fulfil its mandate.
Meanwhile, President Bola Tinubu has reaffirmed Nigeria’s commitment to adopting globally recognized sustainability reporting standards to attract capital investments, reshape business models, and protect the environment.
The declaration came during a meeting with Emmanuel Faber, chairman of the International Sustainability Standards Board (ISSB), held in Abuja.
The President’s endorsement coincided with the unveiling of Nigeria’s Adoption Readiness Roadmap by the FRC, in collaboration with ISSB.
