Nigeria ESG potential,Stakeholders in Nigeria’s private sector are urging stronger action to harness the country’s ESG potential—Environmental, Social, and Governance practices—saying it is vital for improving competitiveness and fostering long-term economic growth. This call came during the launch of the ESG State of Play Report, created by the Nigeria Employers’ Consultative Association (NECA) in collaboration with the International Labour Organisation (ILO) under the LEADER program, designed to bolster ESG engagement across Nigerian businesses.
The Need for ESG Adoption in Nigeria
According to Adewale-Smatt Oyerinde, the director-general of NECA, the business landscape has shifted significantly, making ESG central to organisational sustainability and long-term value creation. He emphasized that ESG adoption is now essential for corporations, financial institutions, regulators, and Nigeria’s Micro, Small, and Medium Enterprises (MSMEs) to stay competitive and aligned with both national priorities and global best practices. However, he acknowledged that ESG awareness remains low, and NECA plans to increase collaboration with organisations already active in the ESG space.
ESG as a Key Driver for Growth
Titilayo Oshodi, Special Adviser on Climate Change and Circular Economy to the Lagos State Government, highlighted that ESG is not only critical for business longevity but also for investor confidence, national development, and global competitiveness. With global ESG-related assets surpassing $30 trillion in 2024, the shift toward ESG is having a profound impact on consumer trust, market access, and organisational reputation.
Embracing ESG offers Nigerian businesses immense potential for sustainable growth, especially as the country faces rapid urbanisation, resource pressures, and a dynamic, youthful population. Companies that integrate ESG principles are likely to benefit from reduced operational risks, lower capital costs, and broader market access.
Gaps and Opportunities in ESG Practices
Julie Kazagui, Senior Specialist for Employers’ Activities at the ILO, emphasized that the ESG State of Play Report is a crucial reference for shaping policy dialogues, building capacity, and guiding businesses toward effective ESG integration. She pointed out that the report provides evidence-based insights into Nigeria’s current ESG adoption levels, identifying critical gaps and actionable opportunities for businesses, policymakers, and investors.
Overcoming Barriers to ESG Adoption
Odiri Erewa-Meggison, External Affairs Director for BAT West and Central Africa, stressed that a key barrier to ESG adoption in Nigeria is the shortage of technical expertise. She called for the development of skilled sustainability professionals who can guide businesses through the complex ESG landscape, helping them navigate regulatory changes and unlock new growth opportunities.
As Nigeria moves forward with embracing ESG principles, industry leaders like Chinyere Almona, Director-General of the Lagos Chamber of Commerce and Industry (LCCI), urged stakeholders to integrate ESG into their core business strategies to enhance risk management, improve talent retention, and drive long-term economic growth.
The growing momentum toward ESG adoption in Nigeria signals a bright future for businesses committed to sustainable development, ensuring their competitiveness on the global stage while contributing to national economic progress.
