Nigeria's FRC Calls for Strong Institutions to Ensure Sustainable Economic Growth

Dr. Rabiu Olowo, Executive Secretary and Chief Executive Officer of Nigeria's Financial Reporting Council (FRC), has emphasized the critical need for robust institutions to achieve sustainable economic growth. Speaking at Nnamdi Azikiwe University in Awka, Olowo argued that fragmented efforts are inadequate for genuine development, advocating instead for integrated solutions across sectors to foster technological innovation.

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We have all heard about Sustainable Development Goals, SDG, but unfortunately there is no country in Africa that can meet that goal by 2030.

Olowo highlighted that many resource-rich African nations have failed to achieve sustainable development, contrasting them with countries that transformed their economies through effective institutions, technology, and sound governance. He pointed out that unreliable financial information leads to market inefficiencies, misallocated capital, and investor reluctance, citing corporate collapses and financial scandals as consequences of poor reporting.

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In the absence of reliable financial information, markets become inefficient. Capital is misallocated. Investors become reluctant to commit resources. Economic opportunities are lost.

Addressing Africa's significant infrastructure financing gap, estimated by the African Development Bank to be in the tens of billions of dollars annually, Olowo stated that closing this gap requires substantial private sector and international investment. He stressed that such investments are contingent upon established transparency, accountability, and confidence in financial information. Olowo also noted the growing importance of sustainability in decision-making, with investors, regulators, and consumers increasingly scrutinizing how organizations manage environmental and social issues.

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For Africa, where significant investments are required to address infrastructure deficits, industrialisation challenges, and development financing gaps, the importance of credible financial reporting cannot be overstated.