Nigeria's Financial Reporting Council has launched a comprehensive transformation programme under its leadership to strengthen the country's financial reporting framework and corporate governance standards. Since October 2023, the FRC has implemented a four-part agenda focused on digitalisation, operational excellence, stakeholder engagement and enforcement to rebuild confidence in the information businesses provide to investors, lenders and other stakeholders. The Council commissioned its permanent headquarters in Lagos in September 2026 as a physical symbol of this institutional evolution.
The FRC has reported conducting practice reviews across 16 audit firms, including the Big Four, covering 143 audit engagements as part of efforts to improve audit quality and financial reporting standards. The Council also highlighted a framework addressing auditors' responsibilities when they encounter non-compliance with laws and regulations, alongside work to strengthen internal controls over financial reporting. On the digital front, the FRC has developed a Document Management System and Learning Management System, integrated its database with the National Identification Number verification system, and worked on a National Repository Portal for audited financial statements.
Sustainability reporting has become a priority as investors increasingly assess companies based on environmental, social and governance-related risks. The FRC worked on adopting International Financial Reporting Standards Sustainability Disclosure Standards, specifically IFRS S1 and IFRS S2, in collaboration with the International Sustainability Standards Board. The number of Nigerian entities applying these standards increased from four in 2024 to 35 by October 2025. The FRC reported that more than 202 entities and 1,705 professionals received training through sector-specific engagements and regulatory roundtables.
For savers, borrowers, business owners and investors in Nigeria, reliable financial reporting provides a stronger basis for evaluating opportunities and risks, helping pensioners whose retirement savings are invested in companies, young people buying shares for the first time, and business owners seeking loans to make better-informed decisions. The FRC's work addresses a fundamental challenge: where financial disclosures are unreliable, investors may misjudge risks and lenders may make poor decisions, but credible reporting strengthens confidence in the market. For Nigerian companies seeking international investment, improved and comparable sustainability disclosures may help businesses respond to investor expectations and participate more effectively in international capital markets.