Nigeria's FRC unveils 2026 IFRS sustainability reporting roadmap

The Financial Reporting Council of Nigeria unveiled its amended IFRS Sustainability Disclosure Standards roadmap and Sustainability Reporting Guideline 1 on February 23, 2026, mandating phased ISSB-aligned reporting from January 2028. The whole-of-economy approach reflects the global spread of ISSB-aligned regimes that ISSB-adopting jurisdictions, including India, are increasingly converging toward.

The Financial Reporting Council (FRC) of Nigeria unveiled the "Roadmap Report for the Adoption of IFRS Sustainability Disclosure Standards in Nigeria (Amendment 2026)" and "Sustainability Reporting Guideline 1 (SRG 1)" on February 23, 2026, in Lagos. Building on the 2024 roadmap, the update provides clarity on reporting timelines, assurance requirements and professional qualifications, aligning with International Sustainability Standards Board (ISSB) frameworks. SRG 1 introduces an "Adoption Readiness Test Assessment," a diagnostic tool helping organisations identify gaps in data collection and governance, with passing it a prerequisite to demonstrate capability to meet IFRS S1 and S2 demands.

The roadmap affects Nigerian entities across a four-phase, whole-of-economy approach. Significant Public Interest Entities (PIEs) must begin reporting from January 1, 2028, Small and Medium Enterprises from January 1, 2030, and a new Phase 4 targets government organisations. The new guidelines aim to reduce ambiguity for the 41 pioneer entities on the verge of full compliance. A staged assurance plan moves entities from limited assurance in the fourth and fifth reporting years to reasonable assurance by the sixth, with complex disclosures like Scope 3 emissions and climate scenario analysis granted additional time.

Nigerian entities should use the Adoption Readiness Test Assessment to identify data and governance gaps ahead of mandatory deadlines, with PIEs preparing for January 1, 2028 reporting and SMEs for January 1, 2030. They should plan for the staged assurance transition toward reasonable assurance by the sixth year and additional time for Scope 3 and scenario analysis. For Indian companies and observers, Nigeria's ISSB-aligned roadmap and National Digital Platform illustrate how regulators institutionalise sustainability reporting to reduce greenwashing and capital flight while strengthening market competitiveness.

Key figure — Compliance start: Significant Public Interest Entities must begin reporting from January 1, 2028