FRC PARTNERS WITH FIRMS TO LAUNCH AI-POWERED SUSTAINABILITY REPORTING TOOL

By: Balogun Ibrahim

The Federal Government on Wednesday made a significant move toward digitising corporate accountability as the Financial Reporting Council of Nigeria signed a tripartite agreement to develop a National Digital Platform for sustainability regulatory reporting, powered by what partners describe as the country’s first core artificial intelligence platform.

The agreement, inked in Abuja, unites the Financial Reporting Council of Nigeria, Sustainability Analytics Limited, and Regulatory Compliance Readiness Advisors Limited in what officials hailed as a landmark shift from manual, fragmented sustainability disclosures to real-time, technology-driven regulatory oversight.

Beyond the ceremonial handshakes and speeches, officials framed the initiative as the creation of “national infrastructure” for sustainable economic intelligence.

In his welcome remarks, the Executive Secretary and Chief Executive Officer of the FRC, Rabiu Olowo, stated that the project aims to move sustainability reporting in Nigeria from rhetoric to enforceable, measurable practice.

Olowo emphasized that the adoption of sustainability reporting in Nigeria is intended to be substantive, not merely symbolic. He stated that the goal is to embed sustainability into the country’s business culture and daily operations, noting that the signing of the agreement marks a step toward a future defined by transparency, accountability, and sustainable economic growth.

He characterized the agreement as “a commitment to the future,” highlighting that sustainability has evolved from a peripheral corporate social responsibility concern to a core consideration in global capital allocation and corporate governance.

“Worldwide, sustainability is no longer a side issue. It is now central to capital allocation, risk management, governance, and the creation of long-term value,” Olowo said.

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Olowo noted that investors, regulators, lenders, development partners, and citizens increasingly demand not only strong financial results but also responsible, transparent, and measurable sustainability performance, emphasizing that Nigeria cannot afford to remain on the sidelines of this global shift.

He observed that, until now, sustainability reporting in Nigeria has largely been voluntary, inconsistent, and manually prepared, which has hindered regulatory oversight and limited comparability across sectors.

The FRC boss said the new digital platform will standardise disclosures in line with internationally recognised frameworks, enable real-time compliance monitoring, and enhance enforcement capacity.

“For too long, sustainability reporting has been fragmented, manual, inconsistent, and difficult to verify. Today, we are replacing fragmentation with integration, opacity with transparency, and manual inefficiency with digital intelligence,” Olowo declared.

He added that the platform will allow the FRC to standardise sustainability disclosures, pinpoint risk concentrations across sectors, detect inconsistencies and potential misstatements, and provide structured support for assurance professionals.

“This is regulatory modernisation in action,” he said.

Acknowledging concerns from smaller businesses over compliance burdens, Olowo stressed that the system will adopt a phased and proportionate approach to ease implementation.

Olowo emphasized that integrating proportionality into the regulatory framework would ensure enhanced sustainability reporting serves as “a structured pathway toward resilience and competitiveness” rather than becoming an administrative burden.

He explained, “The platform is being designed with phased and proportionate functionality. It drives innovation, creates employment, strengthens local supply chains, and sustains communities. Companies will not be overwhelmed; instead, they will be guided through simplified reporting processes tailored to their scale, risk profile, and capacity.”

Olowo also linked the initiative to Nigeria’s efforts to attract capital at a time when global investors increasingly factor environmental, social, and governance (ESG) metrics into lending and investment decisions.

“Global capital is increasingly sustainability-sensitive,” he said. “Countries that can demonstrate credible, digital, regulator-backed sustainability reporting frameworks will enjoy greater investor confidence.”

“By establishing this National Digital Platform, Nigeria sends a strong message: We are serious about credible reporting, regulatory integrity, data-driven governance, and sustainable development,” he added.

He further noted that the platform would produce aggregated national-level analytics on climate risk exposure, sectoral sustainability performance, and emerging environmental and social trends, providing critical data to support evidence-based policymaking.

“In essence, we are creating more than just a reporting tool; we are building national infrastructure for sustainable economic intelligence,” Olowo stated.

Dr Eberechi Weli, representing Sustainability Analytics Limited, described the platform’s technology as the first core artificial intelligence system for sustainability, developed from the ground up rather than adapted from existing static reporting tools.

“We have been operating in this space for some time, in the UK and across Europe, with an office in Copenhagen. But being in Nigeria brings a different kind of excitement,” said Dr Eberechi Weli, giving an overview of the platform. “It’s not just about the opportunity to be here; it’s about collaborating with the FRC. The implementation will have a significant impact on industries, regulators, SMEs, and public interest entities.”

She explained that the AI system powering the platform was trained using multiple models and tested in advanced reporting environments abroad.

“We spent two and a half years on research and another two to three years working with organisations like Heathrow Airport, providing solutions for climate reporting,” Weli said. “SALI is the first core AI sustainability technology ever developed. Previous technologies were static, but this one was built from the ground up.”

According to her, the system significantly reduces manual labour and improves data accuracy.

“It eliminates about 80 per cent of the effort normally required for reporting and reduces errors in evaluation because it has been trained over time on sustainability data and standards,” she added.

Weli further noted that the company had engaged with the International Sustainability Standards Board and secured partnerships to prepare for the platform’s implementation.

“We’ve been working with the ISSB and preparing for this project well before today. Everything is set for smooth execution. Our goal is to help Nigeria implement what we’ve done in Europe—potentially even better. Our commitment is here,” she said.

While technology serves as the backbone of the initiative, Regulatory Compliance Readiness Advisors Limited will focus on capacity building across the ecosystem.

The company’s Chief Executive Officer, Iheanyi Anyahara, emphasized that digital tools alone cannot transform regulatory systems.

“Today marks a significant milestone, not only in regulatory modernisation but also in national capacity development. Technology alone does not transform systems—people do. Standards do not implement themselves. Platforms do not operate themselves. Data does not become credible without competence,” Anyahara said.

He added that RCRA would train public interest entities, SMEs, assurance professionals, and regulatory personnel to ensure the platform is used effectively and responsibly.

“Capacity is the bridge between policy and performance. It is the bridge between compliance and credibility. Our goal is not simply to train—it is to build lasting institutional competence across Nigeria’s reporting landscape,” he explained.

In his closing remarks, the FRC boss, Rabiu Olowo, noted that while major reforms are often marked by legislation, real transformation can also occur quietly through the creation of institutional infrastructure.

“History often records economic reforms through laws or policy announcements. But sometimes, true transformation happens quietly, through building infrastructure that changes how institutions operate. Today is one of those moments,” he said.

Olowo described the concession agreement as the start of a journey toward transparency driven by technology and governance strengthened by data.

“Let this platform stand as a symbol of Nigeria’s resolve to lead responsibly, regulate intelligently, and grow sustainably,” he added.

With sustainability metrics increasingly shaping access to global capital and trade competitiveness, analysts say the success of the AI-powered platform could determine whether Nigeria simply adopts global standards on paper or enforces them in practice.