Norrenberger Report: ESG-Compliant Firms Attract 57% of Capital as Sustainability Drives Investment Flow

· Dangote Group, MTN Nigeria, UBA, Zenith, GTB, others dominate

James Emejo in Abuja

Companies with strong environmental sustainability controls are increasingly gaining investor preference, with about 57 per cent of corporates attracting patient capital, a new report by Norrenberger Group has revealed.
The maiden Nigerian Corporate Sustainability Report (NCSR), which was unveiled in Abuja, underscored a decisive shift in Nigeria’s capital market, where environmental, social and governance (ESG) compliance is fast becoming a key determinant of investment flows.
The report showed that ESG-compliant firms not only attract capital but also outperform their peers by between 28 per cent and 30 per cent, reflecting the growing financial and strategic value of sustainability.
Speaking at the presentation, Minister of State for Industry, Senator John Enoh, said the report would help bridge the persistent data gap in ESG performance and improve the quality of sustainability information available to investors and policymakers.
Represented by the ministry’s Director, Industrial Development Department, Mrs. Muyiwa Ajayi-Ade, the minister noted that globally, investors are increasingly prioritising markets and institutions with strong sustainability credentials, adding that strengthening ESG practices would enhance the country’s competitiveness and attract long-term foreign capital.
Enoh emphasised the need for deeper public-private partnerships to drive sustainable industrialisation, innovation and inclusive economic growth, stressing that the government alone cannot deliver the sustainability agenda.
Group Managing Director/Chief Executive Officer of Norrenberger, Mr. Tony Edeh, described the report as the first comprehensive and independent sustainability assessment of Nigerian corporates, designed to provide a credible benchmark for evaluating ESG performance and guiding investment decisions.
According to him, 21 leading companies, including major players such as Dangote Group, MTN Nigeria, Access Bank and Guaranty Trust Bank dominate the ESG-compliant segment of the market, accounting for a significant share of capital market activity. Others include Access Bank, BUA, UBA, Guinness, Julius Berger, Lafarge, Nigerian Breweries, and Presco Plc, Stanbic IBTC, Transcorp Power, Unilever, Wema Bank, among others.
He said, “These entities represent the cream of the Nigerian capital market, and the reality is that companies that are ESG-compliant are already controlling a significant portion of market value.”
According to him, the remaining firms are expected to align with sustainability requirements ahead of regulatory deadlines.
Edeh noted that sustainability had moved beyond compliance to become a strategic, financial and reputational imperative, driven by improved risk management, operational efficiency and stronger stakeholder trust.
Chairman, Norrenberger, Alhaji Ibrahim Aliyu Bala, described the report as an industry benchmark, noting that businesses must evolve beyond profit-making to focus on long-term value creation for society.
He said the initiative reflected the firm’s commitment to promoting responsible leadership, strong governance and sustainable economic outcomes.
However, the report further revealed that while ESG awareness is growing in Nigeria, adoption remained uneven, with sustainability reporting largely concentrated among large and listed firms, particularly in the financial services and telecommunications sectors.
It identified environmental risks, including climate change, flooding and desertification, as the most material sustainability challenges facing the country, while noting that social issues including financial inclusion, unemployment and access to healthcare continue to shape corporate sustainability priorities.
The NCSR further pointed to financing constraints as a major barrier to scaling sustainability initiatives, citing the underdevelopment of green bonds, sustainability-linked loans and other impact investment instruments in the domestic market.
It, however, noted improving regulatory momentum, including the phased adoption of IFRS sustainability disclosure standards and the Financial Reporting Council’s roadmap, as signals of a gradual shift towards more structured and enforceable ESG reporting.
Stakeholders believed sustainability is increasingly being recognised as a core driver of long-term economic resilience and value creation, with stronger ESG integration expected to define the future of corporate performance in Nigeria.
On his part, Director-General, Securities and Exchange Commission (SEC) Nigeria, Dr. Emomotimi Agama, has said sustainability disclosure had become the gateway to accessing global capital, warning Nigerian companies to align with evolving ESG standards or risk being shut out of investment flows.
He said investors now prioritise environmental, social and governance (ESG) considerations as primary determinants of capital allocation.
According to him, global frameworks such as the International Sustainability Standards Board (ISSB) standards IFRS S1 and S2 are fast becoming mandatory benchmarks for companies seeking long-term funding.
Agama said, “The price of entry is disclosure—credible, consistent, comparable and verifiable,” stating that transparency remained the foundation of investor confidence.
The SEC DG said the report provided one of the most comprehensive assessments of sustainability disclosures among Nigerian listed firms, describing it as a critical tool for benchmarking corporate performance.
While acknowledging progress, he pointed out that many companies still lacked structured and verifiable sustainability reporting, a gap he said must be urgently addressed.
He stressed that the SEC would strengthen its regulatory guidance, deepen engagement with listed companies and introduce incentives to encourage early adoption of robust ESG frameworks.
He further stressed that sustainability was no longer optional but a strategic imperative, noting that firms integrating ESG principles are better positioned to attract long-term capital, manage risks and remain competitive.
He added that Nigeria’s capital market, now valued at over ₦130 trillion, must leverage instruments such as green bonds and sustainability-linked finance to mobilise investment for infrastructure and economic development.
Agama commended Norrenberger for providing thought leadership through the report, noting that private sector initiatives are critical to deepening transparency and strengthening the market.
He urged corporate organisations to treat the report as a benchmark for improving disclosures, warning that the cost of inaction remained far greater than the cost of engagement in a global market increasingly driven by sustainability.
Speaking at the event, the Senior Special Assistant to the President on Climate Finance and Stakeholder Engagement, Mr. Ibrahim Shelleng, said the report came at a critical time when the country is intensifying efforts to meet its international climate obligations, including emission reduction targets under global agreements.
He disclosed that regulatory provisions already required companies with over 50 employees to establish sustainability desks and comply with reporting standards, although implementation had been gradual.
Shelleng stressed the need for stronger collaboration between government and the private sector to achieve national sustainability targets, noting that policy frameworks alone would not deliver results without effective execution.