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Dr. Emomotimi Agama, Director General of the Securities and Exchange Commission (SEC), has called for increased collaboration among sector regulators, businesses, and stakeholders to achieve sustainable development goals. His remarks came during the Regional Training and Capacity Building for securities regulatory authorities, held recently in Luanda, Angola.
Dr. Agama emphasized the importance of effective teamwork as Nigeria intensifies its efforts to embrace Environmental, Social, and Governance (ESG) principles. He described these principles as a critical framework used by socially conscious investors to assess a company’s societal and environmental impact.
The SEC DG outlined that clear guidelines, capacity building, and diligent monitoring of disclosures are essential to translating ESG principles into real benefits for the environment, society, and the economy. “As Nigeria advances economically, integrating ESG principles not only helps mitigate risks but also strengthens long-term resilience and supports sustainable development goals,” Agama stated.
He highlighted that ESG considerations are becoming increasingly important in Nigeria due to significant environmental challenges such as pollution, deforestation, erosion, flooding, and waste management issues. Businesses are responding by investing in renewable energy, water conservation, and eco-friendly manufacturing processes.
From a social perspective, companies are focusing on community engagement, labor rights, and diversity. Dr. Agama urged companies to foster fair labor practices, support local communities through Corporate Social Responsibility (CSR) initiatives, and promote inclusive workplaces.
Governance, he added, is essential for ensuring transparency and accountability. Nigerian companies are working on enhancing board diversity, improving corporate governance structures, and adhering to regulatory requirements to build stakeholder trust.
Dr. Agama also pointed out that ESG initiatives are vital for promoting sustainable development in Africa due to their impact on environmental conservation, social issues, governance, and transparency. He acknowledged that ESG adoption in Africa faces challenges such as limited awareness, capacity constraints, and varying regulatory environments. However, these challenges present opportunities for capacity building, knowledge sharing, and stakeholder collaboration to drive sustainable development.
In 2021, the SEC issued guidelines on Sustainability Financial Principles for the Nigerian Capital Market, aiming to stimulate a resilient and competitive capital market while improving corporate governance practices. The guidelines require public interest and listed entities to incorporate ESG considerations into their operations and decision-making processes to mitigate or offset negative impacts.
Dr. Agama outlined the key principles of the guidelines, which include ESG considerations, collaborative partnerships, capacity building, and financing priority economic sectors. Additional focus areas include human rights, women’s economic empowerment, job creation, financial inclusion, and comprehensive reporting and disclosures.
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