The Securities and Exchange Commission (SEC) has set October 15, 2026, as the deadline for all public companies and significant public-interest capital market operators to submit implementation plans for adopting the International Financial Reporting Standards (IFRS) sustainability disclosure standards.

The directive is part of the commission’s preparations for mandatory sustainability-related financial reporting, which is scheduled to begin on January 1, 2028, for affected entities.

The sustainability standards consist of IFRS S1, which establishes general requirements for disclosing sustainability-related financial information, and IFRS S2, which addresses climate-related disclosures.

Nigeria adopted the standards as part of efforts to strengthen sustainability reporting and promote disclosures that are transparent, comparable and useful for decision-making.

In a circular issued yesterday, the SEC instructed all public companies and significant public-interest capital market operators to begin preparations for sustainability reporting in accordance with the implementation timelines set out in the Financial Reporting Council of Nigeria (FRCN) roadmap.

The roadmap was developed by the FRCN in collaboration with relevant stakeholders, including the SEC, and provides for the phased implementation of the sustainability disclosure standards.

Under the roadmap, entities that were not yet subject to mandatory reporting were encouraged to voluntarily adopt the standards for accounting periods ending on or before December 31, 2023, during the early-adoption phase.

The voluntary adoption phase subsequently covers accounting periods beginning on or after January 1, 2024, through periods ending on or before December 31, 2027.

Mandatory adoption is scheduled to begin for public-interest entities, including all public companies and significant public-interest capital market operators, for accounting periods beginning on or after January 1, 2028.

Small and medium-sized entities will become subject to mandatory adoption for accounting periods beginning on or after January 1, 2030.

The SEC said the implementation plans are intended to help the commission assess the preparedness of regulated entities and support a smooth transition to mandatory sustainability reporting.

Each affected company and capital market operator is therefore required to submit its implementation plan to the commission on or before October 15, 2026.

The plans must also outline the challenges entities expect to encounter while implementing the IFRS Sustainability Disclosure Standards.

According to the commission, the implementation plan must include governance arrangements for sustainability reporting, including board oversight, as well as a gap assessment against the requirements of IFRS S1 and IFRS S2.

The SEC also defined significant public-interest capital market operators as entities that facilitate clearing, settlement, trading or data functions in the capital market.

Source: The Guardian