The Director-General of the Securities and Exchange Commission (SEC), Emomotimi Agama, has raised concerns over weak sustainability reporting among Nigerian companies, warning that gaps in disclosures could hinder access to global capital.
Speaking in Abuja at the launch of the Nigerian Corporate Sustainability Report by Norrenberger Research, Agama said many listed firms still lack structured and verifiable sustainability disclosures.
“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 said.
He noted that the report comes at a critical point in Nigeria’s capital market evolution, as global investors increasingly prioritise environmental, social, and governance (ESG) factors in their investment decisions.
According to Agama, sustainability disclosures are no longer optional but have become essential for attracting long-term capital.
“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,” he stated.
The SEC boss explained that ESG considerations have now become primary determinants of capital allocation, rather than secondary filters used by investors.
He added that Nigeria is aligning with global sustainability standards, referencing the work of the International Sustainability Standards Board in setting disclosure benchmarks.
Agama disclosed that the commission plans to strengthen regulatory guidance, deepen engagement with listed firms, and introduce incentives to encourage early adoption of robust sustainability frameworks.
He said the initiative is backed by the Investment and Securities Act 2025, which expands the commission’s authority to align Nigeria’s market with global best practices.
The SEC DG stressed that improved sustainability reporting is key to unlocking the capital required to address Nigeria’s infrastructure deficit and drive economic transformation. He also noted that the country’s market capitalisation has grown to over N140tn in recent years.
Also speaking, the Minister of State for Industry, John Enoh, highlighted the gap in reliable sustainability data, stressing that transparent ESG information is vital for policymaking and investment decisions.
Represented by Muyiwa Ajayi-Ade, the minister said the report provides a credible benchmark for assessing ESG performance and improving transparency across industries.
He added that stronger sustainability practices would enhance Nigeria’s competitiveness and attract long-term foreign investment.
In his remarks, the Group Managing Director and Chief Executive Officer of Norrenberger Group, Tony Edeh, described the report as the first comprehensive and independent assessment of sustainability practices in Nigeria’s corporate sector.
Edeh said the findings show a clear link between ESG compliance and financial performance, noting that compliant companies outperform their peers by up to 30 per cent.
He revealed that only 21 companies currently meet robust ESG criteria but account for a significant share of market value, expressing optimism that more firms would comply before 2028.
Presenting the report, the Chief Research Officer at Norrenberger, Samuel Oyekanmi, said the study analysed 160 listed companies, narrowing the focus to 46 with sustainability disclosures, of which 21 met ESG standards.
He explained that the assessment covered environmental, social, and governance indicators such as carbon emissions, employee welfare, gender diversity, and board structure.
Oyekanmi added that the ESG-compliant firms accounted for about 67 per cent of market value and have consistently outperformed the broader market over the past five years.
He, however, noted persistent gaps in gender representation and governance structures, urging companies to improve inclusiveness and transparency.
The report is expected to serve as a benchmark for companies to strengthen sustainability disclosures and align with evolving global standards.
