The Securities and Exchange Commission has given public companies and significant public-interest capital market operators until October 15, 2026, to submit implementation plans showing how they intend to comply with international sustainability reporting standards.
The directive forms part of preparations for mandatory sustainability-related financial disclosures scheduled to take effect from January 1, 2028.
According to the SEC directive contained in the supplied report, affected companies are expected to begin preparing for adoption in line with the implementation roadmap developed by the Financial Reporting Council of Nigeria in collaboration with relevant stakeholders.
IFRS S1 and S2 Take Centre Stage
The sustainability framework consists principally of IFRS S1 and IFRS S2.
IFRS S1 establishes general requirements for sustainability-related financial information, while IFRS S2 focuses specifically on climate-related disclosures.
The standards are intended to improve the consistency, comparability and usefulness of information companies provide investors about sustainability-related risks and opportunities.
Nigeria’s implementation is being phased rather than introduced simultaneously across the corporate sector.
The roadmap previously encouraged voluntary adoption for accounting periods ending on or before December 31, 2023, before moving towards mandatory implementation.
Companies Face New Reporting Requirements
For listed companies and major capital-market operators, implementation could require changes extending beyond the preparation of annual reports.
Businesses may need to strengthen internal systems for collecting sustainability information, evaluating climate-related risks and linking such information with their financial reporting processes.
Boards and senior management could also face increased responsibility for ensuring the reliability of information presented to investors.
For the capital market, the changes are intended to give investors more comparable information when assessing companies exposed to climate and other sustainability-related risks.
The October deadline means affected businesses now have a defined milestone ahead of the 2028 mandatory reporting date.
