Nigeria Embraces ISSB Standards: A New Era of Sustainable Finance and Transparency

Nigeria is once again asserting its presence on the global financial stage, but this time, not with noise, but with intention, innovation, and strategic alignment.

NGX Regulation Limited (NGX RegCo), the regulatory subsidiary of the Nigerian Exchange Group Plc, has formally expressed support for the IFRS Foundation’s publication of Jurisdictional Profiles and Snapshots, which stands as a landmark initiative spotlighting how countries are adopting and integrating the International Sustainability Standards Board (ISSB) Standards into their frameworks.

This development marks a pivotal moment for Nigeria’s sustainability journey, reaffirming its leadership among African nations in the move toward global best practices in sustainability-related financial reporting. The country’s inclusion in the inaugural publication speaks volumes about its commitment to market transparency, investor confidence, and responsible governance.

A Roadmap Rooted in Collaboration

The progress reflected in Nigeria’s profile was made possible through the Financial Reporting Council of Nigeria (FRCN) in close partnership with NGX RegCo and other key institutions. The result? A clear, coordinated roadmap for adopting the ISSB Standards is one that strengthens investor trust and positions Nigeria as a leading voice in sustainable finance across the continent.

Olufemi Shobanjo, CEO of NGX RegCo, emphasized the value of this achievement, noting:

“We are proud that Nigeria is featured in this inaugural set, which reflects our proactive commitment to embedding sustainability principles in our capital markets. These jurisdictional profiles are vital in enhancing global transparency and consistency in sustainability disclosures.”

This move is not just about compliance, it’s about positioning. Nigeria is showing the world that its capital markets are not only open for business but are aligning with the future of finance: one that values long-term resilience, accountability, and environmental responsibility.

So, the real question is:

Is your business or institution adapting fast enough to meet the new sustainability expectations? Or are you still playing catch-up in a rapidly evolving financial world?

Macroeconomic Tensions and Policy Shifts

While the regulatory landscape signals progress, macroeconomic realities continue to challenge the broader outlook.

In the foreign exchange market, the Nigerian naira made a modest gain at the official window strengthening to ₦1,527/$ from ₦1,532/$. However, the parallel market told a different story, as the naira slipped to ₦1,585/$, revealing the enduring gap between official policy and real-world currency pressures.

At the same time, Nigeria’s external reserves declined by $3.05 billion in the first half of 2025, falling from $40.88 billion at the end of 2024 to $37.37 billion in June. This drop reflects both external pressures and internal fiscal demands, raising concerns about the country’s buffer capacity to manage future shocks.

Debt Accumulation and Fiscal Rebalancing

Adding to the complexity is Nigeria’s growing debt profile. The country’s public debt stock rose by ₦27.72 trillion over the past year, now standing at ₦149.39 trillion, which is a  22.8% increase compared to June 2024. Much of this surge is attributed to the naira’s depreciation, which has significantly inflated foreign-denominated liabilities.

In response, President Bola Tinubu has approved four new tax bills aimed at boosting revenue, attracting foreign investment, and improving Nigeria’s tax-to-GDP ratio. This legislative effort complements the government’s pivot toward concessionaire financing and public-private partnerships (PPPs); a strategy to reduce dependency on external loans while unlocking infrastructure development.

But a key question remains: Can tax reforms and PPPs meaningfully close Nigeria’s fiscal gap, or will rising debt continue to undermine growth potential?

Global Trends: The Dollar and the World’s Watchful Eye

On the international front, the US dollar continues to weaken, hitting its lowest levels since February 2022. Dovish comments from Federal Reserve Chair Jerome Powell, combined with uncertainty around Donald Trump’s proposed tax-and-spending plans, are reshaping currency markets and capital flows globally.

While this dollar decline could open up opportunities for emerging markets like Nigeria, it also increases the urgency for countries to establish strong, transparent, and sustainable market environments, precisely the goal of initiatives like the ISSB Standards.

In conclusion, Nigeria’s inclusion in the IFRS Foundation’s ISSB jurisdictional profiles isn’t just a public relations win, rather it’s a reflection of serious, structured progress. But as macroeconomic indicators continue to flash caution signs, the work is far from over.

The next chapter for Nigeria’s capital market requires alignment between policy, performance, and perception. Regulatory milestones must be matched by fiscal stability, economic inclusiveness, and bold execution.

So, as the second half of 2025 unfolds, one question remains:

Are we building a market that’s not only compliant but competitive, credible, and sustainable in the eyes of the world?