Environmental, Social, and Governance (ESG) principles are rapidly transforming Nigeria’s corporate landscape, reshaping how businesses are valued and how investors make decisions. This was the central theme of a paper presented by Dr Eugene Itua, CEO of Natural Eco Capital and accredited UNDP trainer, at the BioEdge Environmentals Training Webinar on ESG and Sustainability Reporting Frameworks for Nigerian businesses, held on November 27, 2025.
Itua reiterated that ESG is no longer a peripheral consideration but a strategic imperative for companies seeking to remain competitive in a global economy transitioning to net-zero emissions.
He noted that Nigerian firms, particularly small and medium-sized enterprises (SMEs) and financial institutions, must adapt quickly to align with international sustainability standards such as IFRS S1 and S2.
Itua’s presentation highlighted how the three pillars of ESG—environmental, social, and governance—directly influence corporate valuation. According to him, efficient resource use and emissions reduction lower costs and regulatory risks. Dangote Cement’s investment in alternative fuels was cited as a case study that boosted profitability while cutting emissions. He further stated that employee welfare and diversity initiatives enhance brand reputation. Access Bank’s women-in-leadership program improved staff retention and strengthened its public image.
In governance terms, Itua explained that transparency and board diversity build investor trust. MTN Nigeria’s governance reforms were credited with restoring confidence after regulatory challenges, the Natural Eco Capital boss said.
Global research suggests that companies with strong ESG profiles can command a valuation premium of 10–15 per cent, underscoring the financial benefits of sustainability integration.
Itua, co-lead of Nigeria’s Climate Change Act (2021), who played a pivotal role in developing Nigeria’s Long-Term Vision 2050 and Low Emission Development Strategy, and is currently supporting Eswatini and The Gambia in climate policy development, revealed that investors are increasingly demanding data-driven ESG disclosures, with financing costs directly tied to ESG performance (high ESG score → 3.5% cost of debt; average ESG score → 5.5%; and low ESG score → 8%).
His presentation indicated that Seplat Energy’s transparency in ESG reporting attracted foreign institutional investors, thereby lowering its financing costs. He noted that Nigeria’s adoption of IFRS S1 and S2 is expected to standardise disclosures further, aligning local firms with global expectations.
The report also placed Nigeria’s ESG journey within a broader African context, noting that Kenya issued Africa’s first sovereign green bond in 2019, and that Mauritius and Namibia are building frameworks to attract private equity.
This shift reframes Africa from a “risk zone” to a frontier of sustainable opportunity, according to Itua.
He noted that the Financial Reporting Council of Nigeria has outlined a phased adoption strategy (2023: Early adopters, including Access Bank, MTN, and Seplat; 2024–2027: voluntary phase with capacity building; 2028+: mandatory reporting for Public Interest Entities; and future: Full integration into governance codes).
Itua stressed the strategic shift from philanthropy-based corporate social responsibility to measurable ESG practices. GTBank’s move from charity CSR to ESG-aligned community development was highlighted as a turning point that improved investor perception.
Despite progress, challenges remained, he noted, adding that many Nigerian firms struggle with “spreadsheet sprawl”, siloed teams, and a compliance-first mindset.
“SMEs in particular face capacity gaps. Natural Eco Capital is working with partners such as Synapsys Octoplex and ABANX to introduce governance automation and AI-driven compliance reporting to close these gaps,” Itua explained.
The UNDP’s SDG Impact Standards were presented as a framework for integrity and long-term value creation. Lafarge Africa’s alignment with SDG 12 (Responsible Consumption and Production) attracted impact investors, demonstrating the potential of SDG-linked strategies.
Itua added that ESG is no longer about “doing good” but about “doing well”, reiterating that for Nigerian companies, embracing ESG is the key to unlocking valuation growth, ensuring longevity, and accessing global capital markets.
“Through collaborations with Synapsys Octoplex, DFCC Bank, and ABANX, Natural Eco Capital is positioning Nigerian firms to thrive in a sustainability-driven future,” he stated.
