Published November 5, 2026 | Version v1.1
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Ready for 2028? IFRS S1 and S2 Readiness of Nigeria's Listed and OTC Oil & Gas Public Interest Entities

Authors/Creators

  • 1. Femi Davies & Co. (Chartered Accountants)

Description

Nigeria will require IFRS S1 and IFRS S2 for all public interest entities from 1 January 2028. Before then, companies face the SEC’s implementation-plan deadline (15 October 2026), NUPRC’s move to measurement-based methane reporting (January 2027) and the FRC’s three-stage readiness test (from 30 September 2027). This paper measures how close Nigeria’s listed and OTC-traded oil and gas companies are to meeting these requirements.

Using a 15-indicator disclosure index scored 0 to 3 (maximum 45), the study assesses 11 oil and gas public interest entities on the NGX and NASD OTC markets, with TotalEnergies Group as an international benchmark. The index covers IFRS S2 governance, strategy, risk management, and metrics and targets, plus NUPRC methane alignment, links to IAS 36 and IAS 37 in the financial statements, and readiness for assurance under ISSA 5000.

Scores range from 86.7% (Seplat Energy) to 8.9%. Upstream operators average 60.0%, downstream marketers 29.3% and oilfield service firms 8.9%. Three gaps run across the sector:

  • 10 of 11 companies give no quantitative link between climate assumptions and their impairment or decommissioning figures.
  • 10 of 11 provide no climate scenario analysis.
  • None has internal controls over sustainability reporting ready for external assurance.

The paper proposes a phased transition-relief framework, built on the ISSB’s own transition reliefs, and a single filing window shared by the FRC, SEC and NUPRC.

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