SEC Considers Phased Adoption of Global Sustainability Standards
By Patience Ikpeme
The Securities and Exchange Commission (SEC) is considering a gradual adoption of the global sustainability disclosure standards set by the International Organisation of Securities Commissions (IOSCO). This was disclosed by the Director General of the SEC, Dr. Emomotimi Agama, during an investors’ roundtable on the International Sustainability Standards Board (ISSB).
Dr. Agama stated that Nigeria, having been a part of the taskforce that created the standards, will continue to support their foundational principles. He noted that Nigeria, with its abundant natural resources and growing population, is “particularly vulnerable to climate change and is simultaneously pursuing an ambitious sustainable finance agenda.”
Dr. Agama explained that Nigeria will not simply “copy and paste” the standards but will instead take a carefully tailored approach to their implementation. This includes: capacity building by working with issuers, auditors, and preparers to ensure they are prepared for the new requirements.
Others include, a graduated approach, potentially starting with larger, listed entities before expanding the scope; creating a strong system to verify disclosures and guarantee their credibility; and alignment with local realities by ensuring that the global baseline is applied in a way that is appropriate for the Nigerian market while maintaining the core goal of global comparability.
According to Dr. Agama, the SEC chose this method because it believes “embracing this global baseline will enhance the attractiveness of the Nigerian capital market.” He added that this move “signals to international investors that we are serious about transparency, governance, and managing long-term risk.” He credited the ISSB for transforming from a promising initiative into “the definitive global framework for sustainability disclosures.”
Dr. Agama made it clear that “the case for adoption is clear: for global comparability, for investor trust, for managing systemic risk, and for reducing complexity.” He concluded by saying, “This is no longer a question of if, but of how and when.”
The Director General also said the SEC is committed to collaborating with local stakeholders and the IOSCO network to ensure the standards are implemented effectively. “By adopting the ISSB standards, we are not just complying with a global trend; we are actively building a more stable, transparent, and sustainable financial future for Nigeria, for Africa, and for the world,” he said.
