Nigeria ESG potential is becoming increasingly vital for driving the country’s business competitiveness on the global stage. During the launch of the ESG State of Play Report, stakeholders in Nigeria’s private sector emphasized the urgent need for stronger action to unlock this potential. Developed by the Nigeria Employers’ Consultative Association (NECA) in partnership with the International Labour Organisation (ILO), the report highlights key areas where businesses and regulators must focus to drive sustainable growth.
Harnessing Nigeria’s ESG Potential for Growth
According to Adewale-Smatt Oyerinde, NECA’s director-general, ESG adoption is not just a corporate trend but a necessity for businesses in Nigeria. As the global landscape shifts towards sustainability, aligning with ESG principles is crucial for national development and improving Nigeria’s global competitiveness. While awareness remains low in Nigeria, Oyerinde believes that increasing collaboration with organizations already active in ESG practices will help unlock significant financial opportunities and promote innovation.
ESG as a Key Driver for Nigeria’s Economic Future
Titilayo Oshodi, Special Adviser on Climate Change and Circular Economy to the Lagos State Government, noted that ESG is essential for business longevity and investor confidence. By adopting sustainable practices, Nigerian companies can significantly enhance their brand loyalty, reduce operational risks, and expand market access. As global ESG-related assets surpassed $30 trillion in 2024, businesses that embed ESG principles are set to thrive in an increasingly eco-conscious world.
Challenges and Opportunities for ESG in Nigeria
Despite the potential, the ESG State of Play Report identified several gaps in Nigeria’s ESG adoption. Julie Kazagui from the ILO described the report as a critical reference for policy dialogue and capacity building in Nigeria. Addressing these gaps will help businesses align with global standards and access the growing pool of ESG-driven investment opportunities.
The Path Forward: Unlocking Nigeria’s ESG Potential
As Odiri Erewa-Meggison from BAT West and Central Africa highlighted, the lack of technical expertise in sustainability is a key barrier to the adoption of ESG principles in Nigeria. She called for the development of a new generation of sustainability professionals capable of guiding businesses through the complexities of ESG.
In closing, Chinyere Almona of the Lagos Chamber of Commerce and Industry (LCCI) emphasized that ESG is essential for risk management, fostering long-term service relationships, and contributing to Nigeria’s economic growth. For Nigerian businesses to remain competitive, ESG adoption must be integrated into their core strategies, driving sustainable development and attracting investment.
By embracing ESG, Nigeria can unlock a bright future, ensuring businesses align with global trends, contributing to national prosperity, and enhancing the country’s business competitiveness.
