The Financial Reporting Council of Nigeria (FRC) has unveiled plans to integrate Islamic financial services into the Nigeria’s financial reporting framework through the adoption of standards issued by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI).

The executive secretary and Chairman Executive Officer (CEO) of the FRC, Rabiu Olowo, made this announcement on Monday November 10, during his address at the 7th Africa Islamic Finance Conference in Lagos.

Olowo explained that the initiative aligns with the FRC’s legal mandate to set, monitor, and enforce financial reporting standards in Nigeria.

He noted that the rapid growth of Islamic finance including non-interest banking, Sukuk bonds, Takaful insurance, and ethical investment products has created the need for a unified and globally recognized reporting structure.

He stated, “The Islamic finance sector has become a key contributor to financial inclusion, infrastructure development, and ethical investment.

“However, this growth requires regulators to ensure consistency, reliability, and global comparability in financial reporting.”

He further stated that adopting AAOIFI standards will complement the International Financial Reporting Standards (IFRS) currently in use, providing a dedicated framework suited to the unique contracts and instruments in Islamic finance.

Olowo added, “Nigeria’s financial system is evolving, and our regulatory framework must evolve with it.

“Integrating AAOIFI standards is not just a regulatory step it’s a strategic move to build trust, enhance transparency, and ensure that Islamic finance continues to drive economic growth and inclusion.”

In a goodwill message, vice president Kashim Shettima, represented by Tope Fasua, special adviser to the president on economic affairs, praised Islamic finance for its ethical foundation and focus on fairness and shared prosperity.

“Islamic finance has proven to be a strong partner in promoting inclusive and sustainable economic systems rooted in ethics and fairness,” he said.

His Royal Highness Muhammadu Sanusi II, the 14th Emir of Kano and former governor of the Central Bank of Nigeria (CBN), expressed satisfaction with the rapid expansion of Islamic financial institutions in the country.

“We are witnessing geometric growth in the number of Islamic banks licensed and those applying for new licenses. Islamic finance invests in real assets roads, power plants, water systems, and digital infrastructure which create jobs and long-term economic value,” he said.

Sanusi added that Islamic finance is particularly well-suited for infrastructure development because it is asset-backed and transparent, noting that if Nigeria had consistent access to electricity, it could easily become a $1 trillion economy.

He concluded by stressing that Islamic financing offers a sustainable model for funding critical infrastructure, emphasizing that its structure rooted in tangible assets ensures honesty, job creation, and long-term value for the economy.