In a statement on Monday, the council said the move would involve adopting standards issued by the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI).
According to the Executive Secretary and Chief Executive Officer of the FRC, Dr. Rabiu Olowo, who disclosed this during the seventh Africa Islamic Finance Conference in Lagos, the initiative aligns with the council’s statutory responsibility to set, monitor, and enforce financial reporting standards in Nigeria.
He explained that the rapid growth of Islamic banking, Sukuk issuances, Takaful insurance, and non-interest capital market products had created the need for 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,” Olowo stated.
He added that the adoption of AAOIFI standards would complement existing International Financial Reporting Standards (IFRS) practices while providing a dedicated framework for Islamic finance instruments.
Vice President Kashim Shettima, represented by his Special Adviser on Economic Affairs, Dr. Tope Fasua, praised the initiative, noting that Islamic finance promotes ethics, fairness, and shared prosperity.
Also speaking, the 14th Emir of Kano and former Central Bank Governor, Muhammadu Sanusi II, commended the progress made in Islamic finance, noting that it aligns perfectly with infrastructure financing as it is tied to real, tangible assets.
The announcement comes shortly after the National Assembly approved President Bola Tinubu’s request to issue a $500 million Sovereign Sukuk in the international capital market.
