Coalition urges reform of ESG frameworks in line with global best practices
Nigeria’s banking sector has come under renewed pressure to overhaul its sustainability reporting systems after a coalition of civil society organisations called for urgent reforms of Environmental, Social and Governance
Nigeria’s banking sector has come under renewed pressure to overhaul its sustainability reporting systems after a coalition of civil society organisations called for urgent reforms of Environmental, Social and Governance (ESG) frameworks to align with global best practices.
The call followed the release of a report by the Fair Finance Nigeria Coalition, which found that leading commercial banks in the country recorded an average ESG score of just 1.7 out of 10, raising concerns over transparency, environmental responsibility, and corporate accountability in the financial sector.
The report, presented in Abuja, assessed four major banks—Access Bank, Standard Chartered Bank, United Bank for Africa (UBA), and Zenith Bank—using over 400 international sustainability indicators.
The coalition, comprising BudgIT, Oxfam, Policy Alert, Civil Society Legislative Advocacy Center (CISLAC), Connected Development, and Sustainable Transformation and Empowerment Program, described the findings as “alarming,” warning that Nigeria's current ESG framework is no longer fit for purpose.
Executive Director of CISLAC, Auwal Musa Rafsanjani, said the banks' performance reflected weak compliance and a lack of accountability.
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“Scoring zero on tax transparency and 0.9 on climate change is unacceptable. These institutions are making huge profits from high-impact sectors while refusing to be accountable for the social and environmental footprints of their decisions,” he said.
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He stressed that Nigerian banks must play a stronger role in promoting sustainable development rather than worsening environmental and social risks.
The report revealed critical gaps in key ESG areas, particularly tax transparency, where all four banks scored 0.0 out of 10, with no disclosure of country-by-country revenues or links to tax havens.
According to the coalition, this lack of transparency undermines anti-money laundering efforts and falls short of global standards set by international regulatory bodies.
On climate change, the banks averaged 0.9 out of 10, with continued financing of fossil fuel and other high-emission sectors, without clear transition plans or emissions-reduction targets.
The coalition also flagged weak performance in human rights protection, biodiversity safeguards, and community engagement within bank-financed projects.
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Country Director of Oxfam Nigeria, Ahmed Hamza Tijani, said the findings highlighted systemic weaknesses in the sector’s approach to sustainability.
“Finance is not neutral; every loan and investment shapes lives, communities, and ecosystems. Yet Nigerian banks are falling drastically short of global ESG standards,” he said.
Although Standard Chartered Bank recorded the highest score of 2.7, the report noted that this was largely driven by global policies, with limited evidence of strong local implementation in Nigeria.
The coalition also criticised the 2012 Nigerian Sustainability Banking Principles (NSBP), describing them as outdated and inadequate for emerging environmental and social realities.
Oxfam Programme Manager, Henry Ushie, said the objective of the report was to strengthen, rather than undermine, confidence in the financial system.
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“We are not here to single out institutions but to strengthen confidence in Nigeria’s financial system,” he said, adding that stronger alignment with international frameworks such as the United Nations Guiding Principles on Business and Human Rights is urgently needed.
Ushie also raised concerns about customer service delivery, ATM availability, and labour welfare conditions within the banking sector, describing them as part of broader governance challenges.
In its recommendations, the coalition urged key stakeholders, including the Central Bank of Nigeria (CBN), the Chartered Institute of Bankers of Nigeria, the Bank Directors Association of Nigeria, and relevant committees of the National Assembly, to convene a multi-stakeholder roundtable to reform ESG frameworks.
It called on banks to move beyond what it described as “tick-box compliance” and adopt stronger transparency measures, improved sustainability policies, and verifiable accountability systems.
The coalition said the report had been shared with the affected banks and expressed optimism that sustained engagement with regulators and industry players would drive reforms, restore public trust, and position Nigeria’s banking sector for greater global investment competitiveness.
