SEC Mandates ESG Reporting for Large Nigerian Firms from 2027, Aligning with Global Standards
The Securities and Exchange Commission (SEC) is set to implement mandatory Environmental, Social, and Governance (ESG) reporting for large public interest entities commencing in 2027. This strategic move signals Nigeria’s commitment to harmonising its corporate disclosure framework with international sustainability reporting standards, a development with significant implications for legal, compliance, and investment professionals.
The phased rollout will initially see voluntary adoption by early movers and large public interest entities, paving the way for mandatory compliance in 2027. Subsequent phases will extend the requirement to other public interest entities in 2028 and to small and medium-scale enterprises (SMEs) by 2030. Dr. Emomotimi Agama, Director-General of the SEC, announced these plans at the 2026 Financial Institutions Training Centre (FITC) Sustainability and ESG Conference 3.0 in Lagos.
Nigeria’s sustainability disclosure regime is being meticulously aligned with the International Sustainability Standards Board (ISSB) framework, specifically IFRS S1 and IFRS S2, which have become the global benchmark. Dr. Agama emphasised that institutional investors increasingly view ESG performance as a critical factor in capital allocation, rather than a mere corporate responsibility initiative, underscoring that disclosure is now the “price of entry.” These reforms are anticipated to bolster investor confidence and enhance the ability of Nigerian businesses to access global capital markets, where robust ESG disclosures are rapidly becoming an essential investment prerequisite.
The SEC’s initiative is part of a broader effort to deepen sustainable finance in Nigeria. The commission is actively promoting instruments such as infrastructure, green, and municipal bonds, alongside infrastructure-focused investment funds, to mobilise long-term capital for vital national projects. Furthermore, the SEC will encourage investments in the blue economy and support financing for the power sector through green energy bonds, project bonds, and public-private investment structures. The recent launch of the Nigerian Exchange (NGX) Impact Board is cited as another significant milestone in this endeavour.
Experts at the FITC conference underscored the evolving nature of sustainability and ESG, moving from compliance issues to core drivers of business competitiveness and economic development. Dr. Chizor Malize, Managing Director and CEO of FITC, highlighted the conference’s role in advancing sustainability discourse in Africa, aiming to transition stakeholders “from conversation to commitment.” Professor Fabian Ajogwu, Chairman of the FITC Advisory Board, stressed that governance forms the bedrock of sustainable development, advocating for Africa to become a standard-setter rather than a mere adopter of global frameworks. He also pointed to the substantial economic cost of poor governance in Africa, estimated between $88 billion and $90 billion annually.
Mosun Belo-Olusoga, Chairman of the MTN Nigeria Foundation, delivered the keynote address, asserting that the debate on ESG’s relevance has concluded, with the primary challenge now being implementation. She noted that global investors scrutinise businesses on governance quality, resilience, and their capacity to manage environmental and social risks, alongside profitability. Belo-Olusoga outlined four leadership priorities for Africa: shifting to long-term value creation, replacing philanthropy with strategic social investment, moving beyond compliance to responsible leadership, and strengthening collaboration. She also identified five key priorities for Africa’s ESG agenda over the next decade, including embedding sustainability into corporate strategy, investing in human capital, mobilising indigenous capital, strengthening institutional accountability, and fostering partnerships in critical sectors. The overarching challenge for Africa, she concluded, is execution, requiring enabling policies from governments, integration of ESG into enterprise risk management by businesses, and innovative financing mechanisms from financial institutions.
