ESG and inclusion are now essential for Nigerian corporate boards, with leading governance experts stressing that these standards are no longer optional but a business imperative for sustainable growth and long-term value in the country.
ESG Ascends – Boardrooms Face A New Mandate
Nigeria's leading corporate governance voices have declared that ESG (Environmental, Social, and Governance) inclusion is no longer a matter of choice for boards but a fundamental obligation.
At industry forums, the Chartered Institute of Directors (CIoD) reiterated the message that only companies embracing ESG principles will thrive in tomorrow's markets. "Globally, there is increasing emphasis on adoption and implementation of ESG sustainability principles, to drive growth and ensure long-term business success," noted Alhaji Tijjani Borodo, CIoD President.
From Compliance to Core Strategy – ESG's Expanding Role
Today's ESG frameworks in Nigeria cover far more than environmental compliance. They are beginning to shape new investment, market trust, and risk management. Boardroom leaders are urged to champion ethical behaviour, stakeholder engagement, and transparent reporting.
Mrs Ndidi Nnoli-Edozien of the International Sustainability Standards Board argues, "integration of ISSB standards is a critical part of governance" and can broaden global access to capital by providing transparent, comparable disclosures.
| ESG Pillar | Recent Progress | Boardroom Impact |
|---|---|---|
| Environmental | Green bonds, renewables adoption | Lower risk, new investment |
| Social | Diversity, fair labour practices | Talent retention, reputation |
| Governance | Anti-corruption, transparency | Stronger controls, accountability |
The Promise of ESG for Nigerian Businesses
Market observers highlight that companies investing in ESG enjoy lower financing costs, greater resilience, and broader appeal to socially conscious investors.
"Investors now assess your sustainability from how you manage supply chains, treat the environment, and impact your community," explains Prof. Fabian Ajogwu of Lagos Business School. The increase in sustainability reporting, which has now increased to 70% of Nigeria's top 30 listed companies, reflects this shift.
| Benefit | How ESG Delivers | Business Advantage |
|---|---|---|
| Cheaper Capital | Green finance | Cost of funds declines |
| Brand Equity | Social impact, transparency | Consumer/public trust grows |
| Resilience | Better risk management | Fewer shocks, long-term view |
Building Capacity and Adapting Global Standards
Nigerian regulators are rolling out capacity development and aligning with global frameworks such as ISSB S1 and S2, intending to help organisations prepare for full compliance by 2028.
With corporate directors and regulators now aligning, the path is set for deeper business responsibility and bold leadership in sustainability. Boardrooms must now embed ESG into every strategic decision to future-proof success and national competitiveness.
Infographic: ESG Integration – Boardroom Pathways to Sustainable Growth
| Action Step | Stakeholder | Measurable Outcome |
|---|---|---|
| Adopt ESG standards | Boards, regulators | Reliable disclosures |
| Build reporting capacity | Governance teams | Transparent operations |
| Prioritize inclusivity | HR, leadership | Fair workplaces |
Path Forward:
ESG principles have become the new benchmark for Nigerian boardrooms, steering companies toward a future where sustainability defines success. Across sectors, industries, and firms, more Boards are embedding accountability, transparency, and impact into decision-making.
What was once a peripheral ideal is now central to strategy. A proof that responsible governance is not just ethical but essential for competitiveness in a changing global market.
Culled From: https://punchng.com/esg-inclusion-no-longer-optional-for-nigerian-boards-ciod-president/
