The Nigerian Integrated Reporting Committee (NIRC) has called for the adoption of the integrated reporting standard in Nigeria, in a bid to increase Foreign Direct Investment.
The chairman of the committee, Innocent Okwuosa who stated this during an interview argued that the future of reporting companies’ performances transcends financial reporting which only covers one out of six aspects of companies’ operation, and thus represents only 20 percent of information investors are interested in.
He said: “Corporate reporting in Nigeria is just a bit above infancy. Nigeria is still ahead of many countries when it comes to corporate reporting. But given the position of Nigeria in Africa as the biggest economy, competing with South Africa in attracting foreign direct investment (FDI), it is expected that corporate reporting should be at a higher level than it is now.”
Okwuosa further noted that besides financials, companies and business organizations often leave out five other areas of reporting which are manufacturing capital, natural capital, intellectual capital, social and relationship capital and human capital.
He said giving details of how a company performs in these areas has become a topic of utmost interest to investors who depend on the disclosure of such information to make investment decisions.
According to Okwuosa, who is also a member of Africa Integrated Reporting Council (AIRC), the committee’s strategic action plan is built around three pillars: awareness/advocacy, engagement and capacity building
He said “the committee is channeling particular efforts towards securing the buy-in and the training of industry regulators such as the NSE, the Security and Exchange Commission (SEC), the Central Bank of Nigeria (CBN), National Insurance Commission (NAICOM), Pension Commission (PenCom), Corporate Affairs Commission (CAC), among others to make them spread the need to transition to integrated reporting in their various industries.”
