Firms risk losing global capital without sustainability reports, FRC warns

More than 50 Nigerian companies are proactively adopting global sustainability reporting standards, preparing for the nation's mandatory implementation deadline in 2028. The Financial Reporting Council of Nigeria (FRC) emphasizes that transparency in sustainability is now crucial for investment, competitiveness, and access to finance.

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At a time when Nigeria is implementing significant economic reforms, and businesses are navigating a rapidly changing operating environment, conversations about competitiveness, resilience, investment, and sustainable growth have never been more important.

The FRC warns that companies failing to embrace these reporting standards risk being shut out of international capital, export markets, and strategic partnerships. Investors are increasingly demanding transparency that extends beyond traditional financial statements, evaluating how businesses manage risks, govern operations, address environmental challenges, and create long-term value.

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A few years ago, businesses were assessed primarily on their financial performance. Today, investors, lenders, customers and even employees want a more complete picture. They want to know not only how much profit a company makes, but how sustainable that profit is.

During the 5th Annual Nigeria Employers' Summit, FRC Executive Secretary Rabiu Olowo, represented by Rasak Abubakar, stated that the global business landscape is shifting. He noted that companies are no longer judged solely on profits but on the sustainability of those profits and their overall operational practices.

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They want to know how organisations manage risk, respond to emerging challenges, govern their operations and create value over the long term. In many respects, trust has become one of the most valuable assets any organisation can possess, and trust today is increasingly built on transparency.

Olowo stressed that sustainability reporting should not be viewed as a mere compliance exercise. Instead, it has become a universal language in global finance and trade, essential for attracting long-term capital and securing foreign investment. Trust, he added, is increasingly built on this transparency, making it a valuable asset for any organization.

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It is not about producing another report. It is not about compliance for compliance’s sake. It is about