ABUJA, Nigeria — The Securities and Exchange Commission (SEC) has given public companies and significant public interest capital market operators until October 15, 2026, to submit plans for adopting the IFRS Sustainability Disclosure Standards.
Kanyi Daily reports that the directive was contained in a circular dated September 23, 2026, issued under the Investments and Securities Act 2025, ahead of the mandatory sustainability reporting regime scheduled to begin on January 1, 2028.
The SEC requires each covered entity to submit an implementation plan showing how it intends to adopt IFRS S1 on sustainability-related financial information and IFRS S2 on climate-related disclosures. The plans must also identify expected implementation challenges and the steps required to meet the reporting requirements.
The plans are expected to include governance arrangements and board oversight, a gap assessment against IFRS S1 and IFRS S2, an implementation roadmap with timelines for data collection and reporting systems, internal control and assurance arrangements, and capacity-building and training plans.
Entities must also state the expected year of their first sustainability report under the Financial Reporting Council of Nigeria (FRCN) roadmap. The SEC said it would continue engaging regulated entities and monitoring compliance with the timelines.
Nigeria adopted the IFRS Sustainability Disclosure Standards in June 2023, shortly after the International Sustainability Standards Board (ISSB) issued IFRS S1 and IFRS S2. Early adoption was encouraged for reporting periods ending on or before December 31, 2023, while voluntary adoption applies to entities not yet subject to mandatory reporting through periods ending on or before December 31, 2027.
Mandatory sustainability reporting for public interest entities will apply to periods beginning on or after January 1, 2028, while mandatory reporting for small and medium-sized enterprises is scheduled from January 1, 2030.
Readiness has varied across sectors. Banks have increased efforts to prepare for the 2028 requirement, while some insurers have continued to face gaps in sustainability reporting knowledge and compliance.
The October 15 deadline applies to listed companies and significant public interest capital market operators, including exchanges, central securities depositories, clearing houses and trade repositories. The requirement gives the SEC a company-specific assessment of preparedness ahead of the 2028 reporting deadline.
