Nigeria Joins Global Network to Implement Sustainable Finance Standards, Boosting ESG Reporting
Nigeria has officially joined the Global Emerging Markets Committee (GEMC) Network, which focuses on implementing international sustainability standards in capital markets. The move aligns with the Securities and Exchange Commission’s (SEC) efforts to adopt comprehensive sustainability reporting frameworks that emphasize Environmental, Social, and Governance (ESG) goals. This collaboration will help enhance the country’s economic development through better transparency and corporate disclosures.
Sustainability reporting, which covers corporate achievements and practices related to ESG goals, is becoming an essential tool for businesses to contribute to global sustainability. Nigeria’s participation in the GEMC Network allows the SEC to leverage the International Sustainability Standards Board (ISSB) standards. These standards, endorsed by the International Organization of Securities Commissions (IOSCO), are designed to provide consistent, transparent, and reliable sustainability disclosures that meet the growing demand from investors.
Through this membership, Nigeria’s SEC gains access to vital resources such as educational materials, jurisdictional guides, and technical support to enhance regulatory capacity. This capacity-building effort aims to prepare local markets for the effective implementation of the ISSB standards. It also facilitates the sharing of best practices among GEMC members, allowing countries to exchange experiences on implementing sustainable finance frameworks.
According to SEC Director-General, Dr. Emomotimi Agama, joining GEMC represents a significant step in aligning Nigeria’s capital markets with global sustainability standards. Agama noted that this membership would enhance the country’s credibility in the global markets, attract foreign investments, and support Nigeria’s economic growth, especially in sustainable sectors like environmental protection and carbon reduction.
The GEMC Network serves as a platform for global cooperation, helping emerging markets like Nigeria adopt the ISSB standards and strengthen their capital markets. IOSCO’s endorsement of the ISSB standards in 2023 underscores the increasing market demand for robust sustainability disclosures. The GEMC initiative, along with other regional efforts, aims to establish a consistent and reliable framework for sustainability reporting, fostering better investment practices and promoting economic resilience.
Source: The nation