By 
The Securities and Exchange Commission (SEC) has announced plans to introduce mandatory Environmental, Social and Governance (ESG) reporting for large public interest entities from 2027, marking a significant step in Nigeria’s efforts to align corporate sustainability disclosures with global reporting standards.
The phased implementation will begin with voluntary adoption by early adopters and large public interest entities before becoming compulsory in 2027. Other public interest entities will come under the framework in 2028, while small and medium-sized enterprises (SMEs) are expected to comply by 2030.
Director-General of the SEC, Dr. Emomotimi Agama, disclosed the roadmap at the 2026 Financial Institutions Training Centre (FITC) Sustainability and ESG Conference 3.0 held in Lagos. The conference, themed “Building a Sustainable Africa: Integrating Environmental Stewardship, Social Investment, and Strong Governance for a Prosperous Future,”brought together policymakers, regulators, investors and business leaders to discuss the future of sustainable finance on the continent.
Agama said Nigeria’s sustainability reporting framework is being aligned with the International Sustainability Standards Board (ISSB) standards, particularly IFRS S1 and IFRS S2, which have become the global benchmark for ESG disclosures.
According to him, sustainability reporting has evolved beyond corporate social responsibility and is now a critical factor influencing investment decisions and access to capital.
He noted that institutional investors increasingly evaluate companies based on their ESG performance, stressing that transparent disclosure has become a prerequisite for attracting long-term investment.
Agama explained that adopting internationally recognised sustainability standards would strengthen investor confidence, improve corporate transparency and enhance the competitiveness of Nigerian businesses in global capital markets, where ESG reporting is rapidly becoming a regulatory expectation.
He also highlighted recent growth in Nigeria’s capital market, revealing that market capitalisation has expanded from approximately ₦130 trillion to nearly ₦160 trillion following recent reforms, while assets under management have exceeded ₦9 trillion.
To deepen sustainable finance, the SEC chief said the Commission is promoting innovative financing instruments, including infrastructure bonds, green bonds, municipal bonds and infrastructure-focused investment funds, to mobilise long-term capital for critical development projects.
He added that the Commission is also encouraging investments in the blue economy while supporting financing for the power sector through green energy bonds, project bonds and public-private investment structures.
Agama described the recent launch of the Nigerian Exchange (NGX) Impact Board as another milestone in advancing sustainable finance, urging companies, investors and regulators to move beyond commitments by embedding sustainability into governance structures, business operations and investment strategies.
Managing Director and Chief Executive Officer of the Financial Institutions Training Centre (FITC), Dr. Chizor Malize, said ESG principles have become central to business competitiveness, investment attraction and long-term economic development.
She noted that the FITC Sustainability and ESG Conference, now in its third edition since its inception in 2024, has grown into a leading platform for advancing sustainability dialogue across Africa.
According to her, this year’s conference was designed to shift the conversation from policy discussions to practical implementation and measurable commitments.
Chairman of the FITC Advisory Board, Prof. Fabian Ajogwu, described good governance as the foundation of sustainable development, urging African countries to become active contributors to global sustainability standards rather than merely adopting frameworks developed elsewhere.
Although Africa contributes less than four per cent of global greenhouse gas emissions, he observed that the continent bears a disproportionate share of climate-related impacts, including severe flooding, rising temperatures and increasingly unpredictable weather patterns.
Ajogwu also pointed to estimates suggesting that poor governance costs Africa between $88 billion and $90 billion annually, while highlighting technology-enabled agricultural partnerships involving Morocco’s OCP Group and the Nigeria Sovereign Investment Authority (NSIA) as practical models capable of driving sustainable development across the continent.
Delivering the keynote address, Chairman of the MTN Nigeria Foundation, Mosun Belo-Olusoga, said the debate over the relevance of ESG has ended, with the real challenge now centred on effective implementation.
She observed that investors increasingly assess businesses based not only on profitability but also on governance quality, resilience and their ability to manage environmental and social risks.
Despite contributing minimally to global carbon emissions, Belo-Olusoga said Africa possesses significant competitive advantages, including vast arable land, abundant renewable energy resources and critical minerals required for the global energy transition.
She identified four strategic leadership priorities for the continent: embracing long-term value creation over short-term performance, replacing traditional corporate philanthropy with strategic social investment, moving beyond regulatory compliance towards responsible leadership, and strengthening collaboration among governments, businesses and development partners.
Belo-Olusoga also outlined five key priorities for Africa’s ESG agenda over the next decade, including integrating sustainability into corporate governance and business strategy, investing in human capital, mobilising indigenous capital through green bonds and pension funds, strengthening institutional accountability, and expanding partnerships in renewable energy, digital innovation and climate-smart agriculture.
“The defining challenge before Africa is not a shortage of vision—it is execution,” she said, calling on governments to create enabling policies, businesses to integrate ESG into enterprise risk management, and financial institutions to develop innovative financing solutions that support a greener, more inclusive economy.
Comments