The Central Bank of Nigeria (CBN) has committed to promoting sustainable banking practices by adopting International Financial Reporting Standards (IFRS) as part of a broader strategy to attract foreign investment and drive economic growth. CBN Governor Olayemi Cardoso made this announcement during the Regulatory Roundtable on Thursday in Abuja, where discussions centered on implementing the International Sustainability Standards Board (ISSB)’s Sustainability Reporting Standards in Nigeria.
Governor Cardoso highlighted that this initiative aligns with the federal government’s ambitious goal of achieving a Gross Domestic Product (GDP) of $1 trillion by 2031. He emphasized the growing importance of sustainability reporting for stakeholders, noting that many companies globally are setting sustainability goals and actively seeking ways to reduce their carbon footprint.
“It is important to note that sustainability reporting has become crucial for stakeholders, and many companies are setting sustainability goals and seeking ways to reduce their carbon blueprint,” Cardoso stated. He further stressed that Nigeria must not remain a passive observer as the world advances in sustainable practices. “The world is moving, and we cannot be spectators. Our entities must operate within the global arena, and the President of the Federal Republic of Nigeria has set a goal of achieving a GDP of 1 trillion dollars over the next six years.”
Financial Experts say the adoption of IFRS and the implementation of sustainability reporting standards are critical steps toward integrating Nigeria’s financial sector with global best practices. These measures according to them are expected to enhance transparency, build investor confidence, and ultimately attract more foreign investment into the country.
They also describe the CBN’s alignment with international standards as one that will position Nigeria as a competitive player on the global stage, contributing to sustainable economic growth and the realization of the country’s long-term economic objectives, the focus on sustainability also reflecting a broader commitment to environmental responsibility, social governance, and sustainable development, which are increasingly becoming key factors in global investment decisions.
