The Executive Secretary and Chief Executive of the Financial Reporting Council (FRC) of Nigeria, Dr. Rabiu Olowo, has raised a significant alarm regarding the potential loss of $20 billion in cocoa exports over the next three years if the country fails to comply with sustainability reporting standards. This warning was issued during a visit from the House of Representatives Committee on Commerce, led by Chairman Hon. Ahmed Munir, at the FRC head office in Abuja.
Dr. Olowo emphasized the critical need for Nigeria to meet processing and reporting expectations to sustain its profitability in cocoa exports. He highlighted the importance of addressing deforestation and other environmental concerns to maintain the competitiveness of Nigerian cocoa products. “If you don’t pay attention to deforestation and other environmental issues, your products may no longer be competitive. And that is the real issue,” he stated.
The FRC’s mission, according to Olowo, is to instill utmost confidence in investors by ensuring quality in accounting audits, actuarial evaluations, valuations, and corporate governance standards. He stressed that sustainability reporting influences business conduct concerning environmental, social, and governance (ESG) standards. “Businesses don’t focus just on profit but on the planet as well because without the planet, there will be no business,” Olowo added.
To facilitate this transition, the FRC is developing a Sustainability Adoption Roadmap, aimed at guiding corporate Nigeria in shifting from current sustainability reporting practices to International Sustainability Standards Board (ISSB) standards. Although Nigerian companies have until 2028 to fully comply, four firms have already emerged as early adopters, with a voluntary adoption deadline set for 2026.
Over the next two years, the FRC plans to embark on extensive capacity-building and advocacy efforts to drive the adoption of these standards further. These initiatives are designed to support businesses in understanding and implementing the necessary changes to meet global sustainability expectations.
Hon. Ahmed Munir, during the visit, expressed the committee’s intent to familiarize itself with the FRC’s operations and policies. He emphasized the importance of identifying challenges and areas where parliamentary collaboration and assistance could enable the council to fulfill its mandate effectively.
