The Financial Reporting Council of Nigeria (FRC) yesterday unveiled plans to formally integrate Islamic Finance Services into the country’s financial reporting framework by adopting standards issued by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI).
The Executive Secretary/CEO of the FRC, Dr. Rabiu Olowo, disclosed this in Lagos during his address at the 7th Africa Islamic Finance Conference.
He stated that the initiative aligns with FRC’s statutory responsibility to set, monitor, and enforce financial reporting standards in Nigeria.
He highlighted that the rapid expansion of Islamic Finance Services in Nigeria, including growth in Islamic banking, Sukuk issuances, Takaful insurance, and non-interest capital market products, necessitates consistent and globally comparable financial reporting.
“This sector has become a dynamic contributor to financial inclusion, infrastructure financing, and ethical investment alternatives. However, this growth brings with it the obligation for regulators to ensure that financial reporting for Islamic Finance Services is consistent, reliable, and globally comparable,” he stated.
Olowo further explained that the adoption of AAOIFI standards would complement existing IFRS practices while providing a dedicated framework for the unique contracts and financial instruments used in Islamic finance.
He emphasized that “Nigeria’s financial system is evolving, and our regulatory framework must evolve with it. The inclusion of AAOIFI standards into our national framework is not just a regulatory necessity, it is a strategic imperative for building trust, enhancing transparency, and ensuring that Islamic Finance continues to contribute meaningfully to economic growth and financial inclusion.”
Vice President Kashim Shettima, represented by the Special Adviser to the President on Economic Affairs, Dr. Tope Fasua, said “Islamic finance has emerged as a powerful ally because the system framework is rooted in ethics, fairness and shared prosperity.”
