SEC to Adopt Global Sustainability Standards to Boost Investor Confidence

The Securities and Exchange Commission (SEC) has announced plans to gradually adopt the global sustainability disclosure standards developed by the International Organisation of Securities Commissions (IOSCO) to strengthen investor confidence and attract more capital to Nigeria’s markets.

The move was disclosed by Emoomotimi Agama, director-general of the SEC, during an investor roundtable on the International Sustainability Standards Board (ISSB) over the weekend.

Agama explained that the rollout will be tailored to Nigeria’s market realities. “This means capacity building — working with issuers, auditors, and preparers to ensure they understand and are ready for the new requirements; phased implementation, starting with larger listed entities before expanding to others; and developing an assurance framework to verify disclosures and ensure their credibility,” he said.

According to him, the phased approach will ensure that while Nigeria aligns with the global baseline, the implementation remains practical and proportional to local conditions.

Agama stressed that the adoption goes beyond merely following international trends. Instead, it is about strengthening transparency, good governance, and the ability to manage long-term risks, which he said will position Nigeria’s capital market as a more attractive destination for investors.

The global sustainability disclosure standard provides a unified framework for companies to report on environmental, social, and governance (ESG) issues.

By creating a consistent baseline, the standard makes it easier for investors to compare disclosures across countries and sectors, enabling better assessment of sustainability-related risks and opportunities.

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