SEC Nigeria joins IOSCO-ISSB collaboration for the implementation of sustainability standards

In recognition of the increasing market demand for consistent and reliable sustainability reporting, the Securities and Exchange Commission, Nigeria is joining other jurisdictions on the Growth and Emerging Markets Committee Network on sustainability.

The GEMC Network was created to support the effective adoption and other use of the International Sustainability Standards Board (ISSB) Standards across growth and emerging markets.

By joining this network, jurisdictions can enhance their access to suitable capacity building on supervisory and enforcement aspects of the ISSB Standards, advance their understanding on the relevant resources by the IFRS Foundation to support regulators, including the Jurisdictional Guide, Roadmap Development Tool and  educational materials can support adoption, and to help assess market readiness. Through the Network, GEMC members will receive support in building local capacity to implement the requirements of the Standards.

The Network also serves as a platform for advancing information sharing on a global and regional level, enabling members to exchange experiences and best practices as they implement the ISSB Standards.

In his remarks on the sidelines of the IOSCO Annual Meeting in Doha, Qatar, Director General of the Securities and Exchange Commission, Dr. Emomotimi Agama said the GEMC plays a crucial role in promoting sustainable and resilient capitalmarkets in emerging economies adding that Nigeria’s membership in GEMC would be a significant step towards aligning the country’s capital markets with global sustainability standards.

Agama said Nigeria’s Membership in GEMC Network would enhance Nigeria’s credibility in the global capital markets, attracting foreign investors and promoting economic growth.

He said, “GEMC plays a crucial role in promoting sustainable and resilient capital markets in emerging economies. Nigeria’s membership in GEMC would be a significant step towards aligning the country’s capital markets with global sustainability standards. GEMC’s focus on sustainability would help Nigeria’s capital markets contribute to the country’s sustainable development goals, such as reducing carbon emissions and promoting environmental protection.

“Membership would provide Nigeria’s securities regulator with access to best practices and guidance on sustainable finance, enabling the development of a more effective regulatory framework.

“GEMC membership would also offer opportunities for capacity building and knowledge sharing, enhancing the skills and expertise of Nigeria’s securities regulator and market participants”.
According to the SEC DG, Nigeria’s membership in GEMC and IOSCO would be a significant step towards promoting sustainable and resilient capital markets, enhancing credibility, and contributing to the country’s sustainable development goals and also provide opportunities for capacity building, knowledge sharing, and international cooperation, ultimately benefiting Nigeria’s economy and investors.

Speaking on SEC Nigeria’s membership of IOSCO, Agama said IOSCO sets global standards for securities regulation, and membership would enable Nigeria to contribute to the development of these standards.

“IOSCO membership would facilitate international cooperation and information sharing, helping Nigeria’s securities regulator to stay abreast of global best practices.

“Also, IOSCO’s focus on market integrity would help Nigeria’s capital markets maintain high standards of transparency, fairness, and investor protection”.

The ISSB Standards, issued in June 2023, aims to address the growing demand from investors for decision-useful, comparable, and reliable sustainability-related information. These standards support globally consistent and transparent sustainability disclosures to meet the information needs of investors and other market participants. Following an independent and comprehensive review, IOSCO endorsed the ISSB Standards for capital market use in July 2023 and called on its members to consider ways in which they might adopt, apply, or otherwise be informed by the ISSB Standards within their jurisdictions.

Recognizing the increasing market demand for consistent and reliable sustainability reporting, IOSCO established the Sustainable Finance Task Force (STF) in 2020. The STF focused on addressing gaps in corporate sustainability disclosures.

Following the ISSB’s publication of its draft sustainability standards in 2022, IOSCO reviewed these drafts and provided extensive feedback to ensure alignment with its criteria. This process demonstrated IOSCO’s commitment to fostering effective and transparent sustainability reporting across global markets. IOSCO officially endorsed the ISSB’s sustainability-related financial disclosures on July 25, 2023, which includes IFRS S1 and IFRS S2. In line with this, IOSCO launched its Growth and Emerging Markets (GEM) Committee Network for the Adoption or Other Use of ISSB Standards.

The GEMC Sustainability Network serves as a collaborative platform where members can coordinate efforts, share knowledge, and build capacity related to sustainability disclosure requirements. The network aims to offer cost-effective mechanisms for capacity building and technical assistance. It enables members to identify emerging needs, share experiences, and receive mutual support throughout the implementation process. Regular meetings, both virtual and in-person, are held to maintain momentum, with key gatherings coinciding with major IOSCO events such as the GEMC Annual Meeting and the IOSCO Annual Meeting. In addition, the Network benefits from contributions by the four IOSCO Regional Committees, ensuring broad regional engagement and representation in discussions around the adoption of the ISSB Standards.

IOSCO also provides technical assistance to members in the form of educational materials, jurisdictional guides, and other resources to help them understand and implement the ISSB Standards. The network encourages regional engagement by involving IOSCO’s Regional Committees, ensuring that the perspectives and needs of different regions are taken into account. This collaborative approach helps jurisdictions tackle emerging challenges and respond to evolving demands for sustainability that is more robust reporting. Ultimately, the goal of the GEMC Network is to help create a consistent and reliable framework for sustainability disclosures, ensuring that they meet the needs of investors and the broader global capital markets.