Building Wealth with Purpose: The Future of Sustainable Asset Management in Nigeria

By ESV Dr. Ethel Mendie

From Ownership to Stewardship.
The new conversation around wealth creation is shifting from how much we own to how responsibly we manage what we own. As climate risks intensify and economic priorities evolve, the very idea of asset management is being redefined. It is no longer just about maintaining or monetizing property; it is about aligning economic growth with environmental stewardship, social inclusion, and good governance (ESG). In this new reality, sustainability is not a trend, it is a strategic imperative. And for Nigeria, the challenge is clear: how do we build wealth that endures, not just expands?

Sustainability as the New Capital Logic
Globally, sustainability has moved from moral preference to market logic. According to the Global Sustainable Investment Alliance (GSIA, 2024), more than $35 trillion about 36% of all managed assets worldwide are now governed by ESG criteria. This means capital is following credibility. Institutional investors, development partners, and green funds are redirecting resources toward markets and projects that demonstrate measurable sustainability performance. As BlackRock (2024) observes, ESG integrated portfolios outperform conventional ones by an average of 8% over five years, a compelling case where responsibility is now profitability. For Nigeria, this presents an opportunity to reposition itself not merely as a resource-rich nation but as a responsible investment destination anchored on transparent, sustainable asset practices.

Nigeria’s Context: A Growth Story at a Crossroads
Nigeria’s asset base is vast and diverse spanning oil and gas infrastructure, public real estate, natural resources, and urban developments. Yet much of it remains undervalued, underutilized, or environmentally vulnerable. Climate change compounds this reality. With increased flooding, urban heat islands, and coastal erosion, particularly in Lagos and Port Harcourt, the country’s property and infrastructure assets face mounting sustainability risks (World Bank, 2024). At the same time, the nation’s infrastructure deficit estimated at over $100 billion (NBS, 2024) signals both a challenge and an opening.
If Nigeria integrates sustainability into its asset management system, it can attract global green finance, reduce long-term maintenance costs, and future-proof its economic growth.

What Sustainable Asset Management Means for Nigeria
Sustainable asset management is not an abstract concept it’s a strategic framework that ensures every naira invested delivers both economic and environmental returns. The United Nations Principles for Responsible Investment (UNPRI, 2024) defines it as “the integration of ESG factors into investment and ownership decisions to enhance long-term value and societal impact.” Applied in Nigeria, this translates to:

• Green design and energy-efficient infrastructure from housing estates to public buildings.
• Lifecycle asset planning reducing waste and optimizing maintenance costs.
• Community-sensitive urban development ensuring inclusivity in land use and relocation policies.
• Transparent valuation and reporting aligning local standards with the International Valuation Standards (IVS) and ESG disclosures. This approach transforms property from static holdings into dynamic levers for economic resilience and national reputation.

The Business Case: Profit in Purpose
Evidence shows that sustainability enhances financial performance. A Deloitte Nigeria (2024) study found that green-certified buildings in Lagos and Abuja command 9–12% higher occupancy rates and rental yields than traditional assets. Similarly, Knight Frank (2024) reports growing investor preference for environmentally certified real estate portfolios in emerging markets.
Beyond profitability, sustainability also unlocks access to global capital. The IFC’s Green Buildings Market Report (2024) estimates that Nigeria could attract over $80 billion in green building investment by 2035, if it implements enabling policies and certification systems. This is not theoretical optimism Nigeria’s sovereign green bonds, first issued in 2017 and expanded in 2023, have already demonstrated strong investor appetite for sustainable instruments.

Policy and Institutional Reforms Needed
To mainstream sustainability in asset management, Nigeria must institutionalize a threefold reform approach:

1. Policy Integration Embed sustainability standards in national asset management, public procurement, and land administration policies. The National Council on Climate Change (NCCC), Federal Ministry of Works and Housing, and NIESV should jointly create green compliance benchmarks.
2. Financial Innovation Develop ESG-rated Real Estate Investment Trusts (REITs), sustainability-linked bonds, and incentive schemes for developers adopting green principles. Collaboration with the Central Bank of Nigeria (CBN) and SEC can accelerate this.
3. Professional Leadership the Nigerian Institution of Estate Surveyors and Valuers (NIESV) should lead the creation of a Sustainable Valuation Framework that integrates ESG performance metrics from carbon footprint to social impact indicators into asset valuations.
   These measures will elevate the role of valuers as strategic sustainability advisors, bridging policy, capital, and environmental responsibility.

Valuers as Catalysts of Sustainability.​​
In this evolving economy, valuers are more than asset custodians; they are catalysts for sustainability transformation.
They interpret not only the financial value of assets but their future viability. By quantifying environmental and social impacts, valuers can directly influence investment decisions, guide risk assessment, and promote ethical development. as IVSC (2023) notes, “valuation professionals are central to the credibility of sustainable finance systems, providing the market’s assurance of value integrity. “The Nigerian valuer, equipped with data analytics, ESG knowledge, and digital valuation tools, stands at the frontier of national sustainability and economic credibility.

Conclusion: Wealth That Endures
The true test of national wealth is not what is built, but what endures.
Nigeria’s future lies in managing assets not just for profit, but for posterity.
Sustainable asset management offers the bridge between fiscal strength and environmental responsibility, between today’s growth and tomorrow’s security.
If Nigeria embraces this paradigm guided by forward-thinking professionals and reform-minded policymakers, it will not only attract global capital but also build a legacy of wealth that sustains both people and planet.
About the Author
ESV Dr. Ethel Mendie is a professional Estate Surveyor and Valuer, strategic advisor, and sustainability advocate. She writes on valuation intelligence, investment policy, and governance in Nigeria’s real estate and public asset management landscape. Her work champions innovation, ethics, and sustainability in wealth creation.