The Director-General of the Securities and Exchange Commission, Dr Emomotimi Agama, has flagged weak sustainability reporting among Nigerian companies, warning that gaps in disclosures could limit access to global capital.
Speaking in Abuja on Tuesday at the launch of the Nigerian Corporate Sustainability Report by Norrenberger Research, the analytical arm of Norrenberger Group, Agama said, “The fact that a meaningful number of listed companies still lack coherent sustainability disclosures or provide disclosures that are neither structured nor verifiable is a challenge we must confront collectively as a market.”
He noted that the report comes at a critical time in Nigeria’s capital market evolution, as global investors increasingly prioritise environmental, social and governance considerations in capital allocation decisions.
According to him, sustainability disclosures have moved beyond optional reporting standards to become central requirements for attracting long-term investment.
“Nigerian companies that wish to access the vast pool of patient, long-term capital must understand one unambiguous reality: the price of entry is disclosure. Credible, consistent, comparable, and verifiable disclosure,” he said.
Agama explained that globl capital markets have shifted, with institutional investors now using ESG performance as a primary basis for investment decisions rather than a secondary filter.
“They are no longer treating ESG considerations as filters. They are the primary determinants of capital allocation decisions,” he added.
The SEC boss said Nigeria was aligning with global sustainability standards, referencing ongoing engagement with international bodies to integrate disclosure frameworks into the domestic capital market.
He noted that the International Sustainability Standards Board has established global baselines for sustainability-related disclosures, which Nigeria is working to adopt and adapt to local realities.
He disclosed that the commission would respond to the report’s findings by strengthening regulatory guidance and deepening engagement with listed companies.
“We intend to strengthen our guidance on sustainability reporting, deepen engagement with listed companies on disclosure obligations, and create regulatory incentives for early adopters of robust sustainability frameworks,” he said.
Agama added that the move is backed by the Investment and Securities Act 2025, which gives the commission wider powers to align Nigeria’s capital market with global best practices.
He stressed that improving sustainability reporting is critical to unlocking capital needed to address Nigeria’s infrastructure deficit and drive economic transformation.
The SEC DG also highlighted the growth of Nigeria’s capital market, noting that market capitalisation has risen significantly in recent years to over N140tn.
He urged corporate organisations to use the sustainability report as a benchmark to improve their practices. “Sustainability is no longer a reputational accessory. It is a strategic imperative,” Agama said, warning that companies risk losing competitiveness if they fail to adapt to evolving global standards.
He added that the cost of ignoring sustainability requirements could outweigh compliance efforts in the long run.
Also, the Minister of State for Industry, Mr John Enoh, said Nigeria faces a persistent gap in reliable sustainability data, warning that transparent and standardised ESG information is critical for policymaking, investment decisions, and long-term economic planning.
The minister, who was represented by the Director of Industrial Development at the ministry, Mrs Muyiwa Ajayi-Ade, said the Nigerian Corporate Sustainability Report provides a credible benchmark for assessing ESG performance and promoting transparency and accountability across industries.
He added that global investors are increasingly prioritising markets with strong sustainability credentials, noting that strengthening ESG practices among Nigerian firms would improve competitiveness and attract long-term foreign capital.
Enoh said sustainable economic growth, industrial transformation, and climate resilience cannot be achieved by the government alone, stressing the need for stronger collaboration between the public and private sectors.
In his remarks, the Group Managing Director and Chief Executive Officer of Norrenberger Group, Mr Tony Edeh, said the report represents the first comprehensive and independent assessment of sustainability practices in Nigeria’s corporate sector, noting that previous disclosures were fragmented and lacked structure.
He said the findings show a clear link between ESG compliance and financial performance, adding that “companies that are ESG compliant outperform their peers in the market by 28 to 30 per cent.”
Edeh disclosed that a small number of firms currently dominate ESG compliance within the market, noting that “only 21 companies… represent the prime of Nigerian capital markets,” but account for a significant share of market value.
He expressed optimism that more firms would adopt sustainability standards, noting that the remaining companies are expected to become ESG-compliant before 2028, in line with regulatory timelines.
According to him, beyond regulatory requirements, ESG adoption improves operational efficiency and value creation, stressing that it “is not just a compliance framework, but a framework for competitive operations” that benefits shareholders, employees, communities, and regulators.
Presenting the report, the Chief Research Officer at Norrenberger Group, Mr Samuel Oyekanmi, said it was developed to bridge the gap in sustainability and climate data, noting that many investors currently make decisions without reliable information.
He explained that the firm analysed 160 listed companies, then narrowed the sample to 46 firms with sustainability disclosures, from which 21 met its internal ESG assessment criteria.
According to him, the assessment covered environmental, social, and governance indicators, including carbon emissions, employee welfare, gender diversity, and board structure.
Oyekanmi said the findings showed that the 21 ESG-compliant firms accounted for about 67 per cent of market value and had outperformed the broader market over the past five years.
He added that the results confirm that sustainability practices are linked to profitability and stronger market returns.
The research head also noted gaps in gender representation and governance structures across companies, stressing that more progress is needed to improve inclusiveness.
He said the report is intended to serve as a benchmark to encourage companies to improve disclosures and adopt stronger sustainability practices.
The PUNCH earlier reported that Nigeria’s capital market regulators and professional accountants called for stronger transparency, governance, and sustainability disclosure by listed companies, as pressure mounts on firms to align corporate reporting with global standards beyond traditional financial statements.
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