Experts Urge Stronger ESG Reporting as Nigeria Moves Toward 2028 Mandate

Experts have urged stronger Environmental, Social and Governance (ESG) reporting practices in Nigeria as the country advances toward mandatory sustainability disclosures set to begin in 2028, warning that weak compliance could expose firms to regulatory penalties, investor withdrawal and rising financing constraints. The call was made at an ESG awareness and capacity-building training for journalists […]

Experts have urged stronger Environmental, Social and Governance (ESG) reporting practices in Nigeria as the country advances toward mandatory sustainability disclosures set to begin in 2028, warning that weak compliance could expose firms to regulatory penalties, investor withdrawal and rising financing constraints.

The call was made at an ESG awareness and capacity-building training for journalists and editors organised in Lagos by Harley Reed Nigeria, where stakeholders stressed that improved media scrutiny will be critical to strengthening transparency ahead of the transition.

Speaking at the event, General Manager, Business Services at the firm, Chinwe Kalu, said ESG considerations have become central to global investment decisions, making it necessary for journalists to understand sustainability reporting frameworks and their economic implications.

She noted that while Nigerian companies are increasingly aligning with international standards, communication around compliance remains limited, creating a disclosure gap that could undermine public trust and investor confidence.

Assistant Manager, Risk and Disclosures at the firm, Agatha Afemikhe, said ESG reporting has moved beyond corporate social responsibility to become a key determinant of financial performance and risk exposure.

She warned that environmental damage, governance failures and social inequality now directly influence company valuation and access to capital.

“ESG issues are no longer soft news,” she said. “They influence investor decisions, corporate reputation and economic stability.”

Afemikhe urged journalists to interrogate sustainability claims by companies and government institutions to prevent misinformation and ensure accountability in reporting.

She cautioned that weak scrutiny could enable greenwashing where firms exaggerate environmental performance or greenhushing, where companies deliberately withhold sustainability data.

Nigeria has already adopted the International Sustainability Standards Board (ISSB) frameworks, including IFRS S1 and IFRS S2, as part of efforts to align with global reporting standards.

Under the national roadmap, early adoption began in 2023, followed by voluntary reporting between 2024 and 2027. Mandatory ESG reporting for public interest entities and government organisations is expected to commence in 2028, while small and medium-sized enterprises will follow from 2030.

Experts at the training said the global ESG investment market is now valued at between $30 trillion and $40 trillion, underscoring how sustainability considerations are reshaping capital flows and corporate strategy worldwide.

They also highlighted mounting economic risks linked to climate change, warning that Nigeria could face up to an 8 per cent reduction in GDP over time if environmental challenges remain unaddressed.

Additional projections presented at the session showed that rising sea levels could cost the country between 0.1 per cent and 0.4 per cent of GDP annually, while extreme weather events continue to increase public spending on disaster response.

Beyond environmental concerns, the training noted broader governance and social risks across Africa, including that over 85 per cent of workers operate in informal employment, while the continent loses an estimated $148 billion annually to corruption.

Experts said these structural challenges reinforce the need for stronger ESG frameworks to improve accountability, attract sustainable investment, and strengthen economic resilience.

They warned that companies failing to comply with ESG reporting requirements risk fines, reputational damage, investor exit and restricted access to financing in an increasingly ESG-driven global market.

Participants were told that stronger ESG reporting by the media will be essential in ensuring that corporate and public sector commitments translate into measurable outcomes ahead of Nigeria’s full transition to mandatory disclosure in 2028.

The training formed part of broader efforts to prepare journalists for their watchdog role in a regulatory environment where sustainability performance is becoming a key driver of investment decisions and economic credibility.