NGX RegCo Urges Banks To Embrace ESG For Global Competitiveness

The chief executive officer of NGX Regulation Limited (NGX RegCo), Ms. Tinuade Awe emphasised the importance of banks swiftly integrating environmental, social, and governance (ESG) principles into their business strategies, following Nigeria’s commitment to adopt the International Sustainability Standards Board (ISSB) standards.

Awe asserted that, doing so would provide them with a competitive edge in the global market.

This call to action was made during a panel session titled ‘ESG in the Financial Services Industry: Challenges, Opportunities, and the Next Steps,’ held at the 16th Annual Banking and Finance Conference organised by the Chartered Institute of Bankers in Nigeria (CIBN) in Abuja.

Awe highlighted that ESG reporting is a dynamic and significant issue with various global standards and frameworks in place, leading to complexity for both investors and companies worldwide.

She emphasised the growing international consensus on the necessity for standardized ESG reporting and suggested that Nigeria’s banking sector could play a pivotal role in adopting and implementing these standards.

“Early adoption of ESG standards, particularly those established by the ISSB, is a critical move for Nigeria, including its banking sector. It ensures consistency, attracts foreign investment, and allows Nigeria to have a voice in shaping its own ESG reporting criteria,” Awe noted.

She further explained the importance of avoiding fragmentation and the opportunity for Nigeria to establish its unique cultural and social identity within the ESG reporting framework, rather than being subject to foreign standards.