By Chinenye Anuforo
Nigeria risks missing out on a rapidly expanding $30 trillion to $40 trillion global Environmental, Social and Governance (ESG) investment market unless urgent steps are taken to align businesses, regulations and media reporting with international sustainability standards.
This was the consensus at the ESG and Sustainability Training for Editors and Journalists in Nigeria, where experts warned that ESG has evolved into a decisive factor shaping global capital flows, corporate survival and national competitiveness.
Speaking at the training, sustainability expert Agatha Afemikhe said the scale of global ESG investments presents both a massive opportunity and a looming threat for countries that fail to act.
“The ESG investment market is valued in the trillions globally. This means capital is no longer neutral; it is selective. Investors are now directing funds to companies and countries that demonstrate strong environmental, social and governance performance,” she said.
Afemikhe stressed that Nigeria must position itself strategically or risk being sidelined in global investment decisions increasingly driven by sustainability metrics.
According to her, ESG has moved beyond corporate social responsibility into a hard economic requirement, influencing everything from access to finance and investor confidence to regulatory compliance and market valuation.
“Companies that fail to align with ESG expectations risk losing access to capital, facing regulatory sanctions, and suffering reputational damage. At a country level, this translates into reduced foreign investment and slower economic growth,” she added.
Insights from the training revealed that global financial institutions, including development banks and private investors, now tie funding decisions and interest rates to ESG performance, making sustainability a key determinant of economic participation.
Experts noted that Nigeria is already under pressure from multiple fronts – regulatory bodies, institutional investors, civil society and international partners – to improve ESG compliance, particularly in high-impact sectors such as oil and gas, agriculture and extractives.
They pointed out that environmental risks in the Niger Delta, governance concerns, and social issues such as community impact and labour practices have placed Nigeria under increasing global scrutiny.
Despite these challenges, stakeholders at the training emphasised that Nigeria stands to gain significantly if it embraces ESG reforms.
Potential benefits highlighted include increased access to ESG-linked financing, improved investor confidence, enhanced corporate resilience, and opportunities for innovation and new market development.
The adoption of global sustainability reporting standards such as IFRS S1 and S2 by Nigerian regulators was described as a critical step in aligning the country with international best practices.
However, experts warned that implementation remains the biggest hurdle.
“Adoption is one thing; enforcement and understanding are another. There must be capacity building across institutions, companies and even the media,” Afemikhe said.
She highlighted the role of journalists in shaping Nigeria’s ESG future, noting that accurate, data-driven reporting will influence investor perception and public trust.
“The media plays a powerful role in interpreting ESG issues. If sustainability reporting is weak or misleading, it affects how investors see the country,” she said.
Participants were also cautioned about the rising trend of greenwashing, in which companies exaggerate sustainability claims, and greenhushing, in which organisations deliberately withhold ESG information.
According to the training, both practices pose significant risks to transparency and investor confidence, making the media’s watchdog role even more critical.
Industry analysts at the event warned that ESG is no longer optional but a defining feature of modern economies, with countries that fail to adapt facing exclusion from global capital markets.
For Nigeria, the message was clear: aligning with ESG standards is not just about sustainability; it is about economic survival.
As the global financial system continues to shift towards responsible investing, stakeholders agreed that Nigeria must act decisively to strengthen its ESG framework or risk being left behind in one of the most consequential economic transformations of the century.
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