ESG now real test of leadership in Nigeria’s oil and gas
By Kike Fajemirokun Nigeria’s energy sector stands at a crossroads. Oil and gas remain the backbone of Nigeria’s economy, yet the global shift toward low-carbon alternatives is accelerating. For Nigerian
By Kike Fajemirokun
Nigeria’s energy sector stands at a crossroads. Oil and gas remain the backbone of Nigeria’s economy, yet the global shift toward low-carbon alternatives is accelerating. For Nigerian operators, ESG – Environmental, Social and Governance principles, is no longer about public relations. It is a survival strategy.
The pressures are clear: Nigeria’s Climate Change Act and the Petroleum Industry Act (PIA) are reshaping obligations. International investors are asking tougher questions. Host communities are demanding more than token gestures. Those who treat ESG as a compliance exercise risk being left behind. Those who lead will define the future of Nigerian energy.
Why ESG matters
Our industry has long been defined by contrasts: abundant resources, yet widespread energy poverty; economic potential, yet persistent community tensions. Adding climate risk only raises the stakes. Without credible ESG action, companies risk losing investment, market access and their social licence to operate.
From compliance to commitment
At Lekoil Nigeria, I have worked to move ESG beyond compliance, our approach is intentional and purposeful. Through our joint venture with Green Energy International Limited, we invest in water, healthcare, and education initiatives, not as acts of charity, but as long-term shared value strategy. We believe that resilient, thriving communities build resilient, thriving companies, creating a pathway to sustainable growth.
We have also reduced flaring by deploying three 2MW gas generators at the Otakikpo field, with a fourth unit under review. Governance reforms, from embedding ESG in performance reviews to strengthening whistleblower protections are equally critical.
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These measures build resilience and accountability.
A locally-led transition
One lesson is clear: Nigeria’s ESG journey cannot be imported wholesale. Our realities; from energy poverty to infrastructure gaps, demand a tailored approach. In 2023, we developed an internal Renewable Energy Framework, focusing on practical steps including gas as a transition fuel to drive domestic access, early solar partnerships to expand off-grid solutions and exploring ecosystem restoration projects that could generate carbon credits while supporting livelihoods.
These are deliberate, incremental moves, not headline-grabbing announcements, but they reflect what it takes to build credible, locally grounded progress.
A call to industry
Nigeria’s energy transition will not be dictated from abroad. It will be shaped by the choices we make locally, how we manage emissions, engage our communities, and strengthen governance. True ESG leadership lies not in glossy reports, but in embedding accountability into daily operations.
Looking ahead
The journey is not easy. ESG in Nigeria requires navigating bureaucracy, building trust with communities, and staying the course despite global skepticism. But the opportunity is enormous. Companies that lead will secure their licence to operate at home and also gain credibility in global markets where sustainability is now non-negotiable.
For me, one truth stands out: Africa’s energy transition must be led from within. If we fail to shape our own path, others will define it for us, and we may not like the outcome. The question is not whether ESG matters, but whether we are bold enough to make it our strategy for survival and growth.
Fajemirokun, Corporate Services & ESG Lead at Lekoil Nigeria Limited, has over a decade of experience spanning human resources, corporate governance, and sustainability strategy. She focuses on embedding practical, high-impact ESG initiatives into core operations, aligning regulatory obligations with long-term value creation. Fajemirokun holds degrees in sociology, law and business administration and is passionate about shaping responsible energy practices in Africa.
