The Securities and Exchange Commission has raised concerns over weak sustainability reporting among Nigerian companies, warning that poor disclosure practices could hinder their access to global capital.
The Director-General of the SEC, Emomotimi Agama, stated this on Tuesday in Abuja at the launch of the Nigerian Corporate Sustainability Report by Norrenberger Research.
Agama said many listed companies still lack structured and verifiable sustainability disclosures, describing the trend as a challenge that must be urgently addressed.
“The fact that a meaningful number of listed companies still lack coherent sustainability disclosures or provide disclosures that are neither structured nor verifiable is a challenge we must confront collectively as a market,” he said.
He noted that sustainability reporting has become central to global investment decisions, as international investors increasingly prioritise environmental, social and governance (ESG) performance.
According to him, firms seeking access to long-term capital must meet strict disclosure requirements.
“Nigerian companies that wish to access the vast pool of patient, long-term capital must understand one unambiguous reality: the price of entry is disclosure. Credible, consistent, comparable, and verifiable disclosure,” he said.
Agama added that ESG considerations are now primary drivers of investment decisions, not secondary filters.
“They are no longer treating ESG considerations as filters. They are the primary determinants of capital allocation decisions,” he added.
He said Nigeria is aligning with global sustainability frameworks, including standards developed by the International Sustainability Standards Board, and disclosed that the SEC will strengthen regulatory guidance on reporting.
“We intend to strengthen our guidance on sustainability reporting, deepen engagement with listed companies on disclosure obligations, and create regulatory incentives for early adopters of robust sustainability frameworks,” he said.
Agama also referenced the Investment and Securities Act 2025, noting that it expands the commission’s powers to enforce global best practices in the capital market.
He stressed that improved sustainability reporting is critical to attracting investment needed for infrastructure and economic growth, adding that Nigeria’s capital market has grown to over N140tn in market capitalisation.
Also speaking, Minister of State for Industry, John Enoh, said Nigeria still faces a major gap in reliable ESG data and called for stronger transparency to guide investment and policy decisions.
He noted that global investors are increasingly favouring markets with strong sustainability credentials.
In his remarks, Group Managing Director of Norrenberger Group, Tony Edeh, said ESG compliance is strongly linked to financial performance, noting that compliant companies outperform peers by 28–30 per cent.
He said only a small number of firms currently meet ESG standards but expressed optimism that more companies would comply ahead of 2028 regulatory timelines.
Presenting the report, Chief Research Officer at Norrenberger Group, Samuel Oyekanmi, said the study assessed 160 listed companies and found that only 21 met its ESG criteria.
He added that those companies accounted for about 67 per cent of market value and had consistently outperformed the broader market over the past five years.
Oyekanmi said the findings highlight gaps in governance, gender representation, and environmental reporting, stressing the need for improved corporate disclosure standards across the market.
