Nigeria moves to close SDG financing gap

Nigeria is accelerating efforts to align with global sustainability reporting standards as it seeks to unlock capital needed to bridge an estimated $31.5 billion annual financing gap for the Sustainable Development Goals (SDGs).

With investors increasingly demanding transparent environmental, social and governance disclosures, policymakers, regulators and market operators are moving to adopt the International Sustainability Standards Board (ISSB) framework, positioning the country as a leading voice in shaping sustainability practices across emerging markets.

The push comes as developing countries face an estimated $1 trillion annual financing gap to meet the SDGs. In Nigeria alone, the gap is valued at about $31.5 billion, underscoring the urgency of mobilising private capital through credible and standardised reporting systems.

The Chief Executive, Impact Investors Foundation (IIF), Ms. Etemore Glover, said the adoption of the ISSB framework has become critical for attracting global capital and strengthening market confidence.

Speaking at the opening of a three-day IFRS Sustainability Reporting ISSB Capacity Building Workshop in Lagos, the Chief Executive emphasised that sustainability-related financial disclosures are fast becoming indispensable in global markets, where investors and regulators increasingly depend on transparent data to assess corporate resilience and risk.

“These standards are rapidly becoming indispensable for global markets. As sustainability-related financial disclosures gain prominence, investors and regulators increasingly rely on them to assess corporate resilience, market risk, and attract international capital.”

“By standardising how we communicate environmental and social impacts, we take meaningful steps towards closing the $1 trillion annual financing gap required for developing countries to achieve the SDGs. In Nigeria, it’s valued at about $31.5 billion, and that is whopping,” Ms. Glover said.

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The workshop, convened by the IIF in partnership with the Corporate Reporting Academy, reflects a broader shift from awareness to implementation as institutions prepare for the ISSB era.

According to her, findings from a 2024 multi-country assessment conducted with global partners showed Nigeria emerging as one of the most advanced markets in sustainability readiness. The country’s progress, she noted, has been driven by the Financial Reporting Council of Nigeria, which is already developing a comprehensive roadmap through a multi-stakeholder process.

“Nigeria is not merely participating in global sustainability conversations—we are actively helping to shape it,” the Chief Executive said, noting that extensive consultations and a dedicated working group have laid the groundwork for adoption.

A member, Board of Trustees , IIF, Adewale Ajayi, underscored the growing urgency for businesses to embrace global sustainability reporting standards, describing the country as being at a “critical junction” in its sustainability journey.Ajayi said the conversation around sustainability has shifted from questioning its relevance to focusing on measurement, disclosure and accountability.

“It’s very important for us to note that when we talk about sustainability, especially in this country now, we’re at a critical junction on a journey to sustainability,” he said. He noted that in the past, stakeholders often debated the importance of sustainability, but the focus has now evolved toward practical implementation. “Some years back, we used to wonder about sustainability; we used to talk about why it may be important and relevant to us. But the talk is no longer about the relevance. We’re talking about how do we measure, how do we discuss, and how do we report,” he added

.Ajayi emphasised that the adoption of IFRS S1 and S2 standards would significantly strengthen corporate transparency and investor confidence in Nigeria. According to him, the frameworks require companies to disclose sustainability-related risks and opportunities, alongside climate-related information, thereby aligning corporate reporting with global best practices.

The Director-General, Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, reaffirmed the Federal Government’s commitment to adopting global sustainability reporting standards, while pledging a phased and capacity-driven implementation to reflect the realities of the domestic market.

Speaking through the SEC’s Divisional Head, Legal (REMI), Tony Iloka, Agama acknowledged that sustainability disclosure requirements—particularly emissions accounting and value chain assessments—are “technically complex” and demand robust data infrastructure and expertise that cannot be developed overnight. He assured stakeholders that the Commission would not impose impractical mandates.

“We are not in the business of mandating standards that our market cannot wisely implement. Proportionality, phasing, and capacity support are essential features of any credible implementation roadmap, and they are features that the Commission intends to bring explicitly into its revised sustainability reporting framework,” Agama said.

Despite concerns about readiness, the SEC boss pushed back against narratives suggesting Nigeria lacks the capacity to adopt such frameworks. He pointed to the country’s successful transition to International Financial Reporting Standards (IFRS), adoption of international auditing standards, and the implementation of the Companies and Allied Matters Act 2020 as evidence of resilience within the corporate and regulatory ecosystem.

“The Nigerian corporate sector has demonstrated repeatedly its capacity to absorb and implement complex regulatory reporting frameworks. What is required is not a lowering of standards, but a structured, well-supported, adequately resourced implementation programme,” he said.

Agama emphasised that the Commission would work closely with partners, including the IFRS Foundation and the World Bank, to provide guidance, phased timelines and sector-specific tools, while maintaining open channels of engagement with stakeholders. Other experts who spoke during the event included  Chief Executive, NGX Limited, Mr. Femi Shobanjo; Chief Executive /Founder, Corporate Reporting Academy, Dr. Iheanyi Anyahara; Chief Executive, SALI Technology, UK. Dr. Eberechi Weli;  Head of Department, Nnamdi Azikiwe, University Awka, Anambra State, Prof. Mrs Onyinyechi Eneh, Director, ISSB, Dr. Ndidi Nnoli,  among others.