Nigeria Risks Losing Global Capital without Strong ESG Disclosures, SEC Warns

Sunday Ehigiator

Nigeria and other African countries risk losing access to billions of dollars in global investment unless companies strengthen their Environmental, Social and Governance (ESG) disclosures, the Director-General of the Securities and Exchange Commission (SEC), Dr Emomotimi Agama, has warned.

Agama issued the warning at the FITC Sustainability & ESG Conference 2026 held recently in Lagos, where business leaders, policymakers, regulators, investors and development partners gathered to chart pathways for accelerating sustainable development across Africa.

Speaking during a special address at the conference, Agama said sustainability reporting had evolved beyond regulatory compliance into a strategic business necessity, noting that global investors are increasingly directing capital towards organisations with transparent governance structures and robust ESG frameworks.

He warned that companies failing to improve the quality of their sustainability disclosures could find themselves excluded from growing international investment flows.

“Nigerian companies that fail to strengthen their Environmental, Social and Governance disclosures risk missing significant global capital flows as investors increasingly prioritise transparency, responsible governance and sustainable business practices,” Agama said.

Held under the theme, ‘Building a Sustainable Africa: Integrating Environmental Stewardship, Social Impact, and Strong Governance for a Prosperous Future’, the conference examined how sustainability and ESG principles can drive investment, institutional resilience and inclusive development across the continent.

Managing Director and Chief Executive Officer of FITC, Dr Chizor Malize, described sustainability and ESG as strategic drivers of competitiveness rather than optional corporate initiatives.

According to her, organisations and nations that integrate environmental stewardship, social investment and strong governance into their decision-making processes will be better positioned to attract investment, manage risks and create long-term prosperity.

“Sustainability and ESG have evolved from corporate responsibility initiatives to strategic drivers of competitiveness, resilience and long-term value creation. Africa’s future will be determined not by the magnitude of its challenges but by the quality of leadership and the decisions made today.”

Delivering the opening address, Chairman of the Advisory Board of the FITC Sustainability & ESG Institute, Prof. Fabian Ajogwu (SAN), called for urgent and coordinated climate action, describing environmental stewardship as one of the defining leadership responsibilities of this generation.

He said climate change was no longer solely an environmental issue but a strategic economic challenge with profound implications for businesses and governments.

According to Ajogwu, “leaders must embed sustainability into corporate strategy, institutional governance and national development planning.” He stressed that “protecting Africa’s natural capital is fundamental to securing long-term economic resilience and prosperity.”

The conference also highlighted the importance of sustainable finance in supporting Africa’s transition to a low-carbon and climate-resilient economy.

Representing the Deputy Governor of the Central Bank of Nigeria (Economic Policy), Mr Philip Ikeazor, Mr. Mike Ononugbo said environmental stewardship remained essential for protecting Africa’s natural resources while sustaining economic growth.

He noted that initiatives such as the Africa Carbon Market Initiative and the Green Climate Fund could help bridge the continent’s significant climate financing gap.

According to him, “green finance provides an important mechanism for directing investment towards renewable energy, climate-resilient infrastructure, low-carbon technologies and environmentally sustainable enterprises.”

He identified green bonds, sustainability-linked loans and green equity as critical financial instruments capable of mobilising the capital required to accelerate Africa’s green transition and strengthen long-term economic resilience.

Delivering the keynote address, Chairman of the MTN Foundation, Mrs Mosun Belo-Olusoga, challenged African leaders to reposition sustainability and ESG as the continent’s blueprint for long-term prosperity.

She said Africa’s future competitiveness would depend not merely on its abundant natural resources but on the quality of its institutions, leadership and capacity to create lasting value for communities. She called for a new leadership paradigm anchored in integrity, accountability, innovation and long-term thinking.