Experts have called for improved Environmental, Social and Governance (ESG) reporting in Nigeria as the country prepares for mandatory sustainability disclosures starting in 2028. The push was made during an ESG awareness and capacity-building training for journalists and editors held in Lagos by Harley Reed Nigeria. General Manager, Business Services at the firm, Chinwe Kalu, emphasized that ESG factors now shape global investment decisions, requiring journalists to understand sustainability frameworks and their economic impact. She noted that while Nigerian firms are adopting international standards, poor communication on compliance has created a disclosure gap that threatens investor confidence.
Assistant Manager, Risk and Disclosures, Agatha Afemikhe, stated that ESG reporting is no longer tied solely to corporate social responsibility but directly affects financial performance and risk exposure. "ESG issues are no longer soft news," she said. "They influence investor decisions, corporate reputation and economic stability." Afemikhe warned against greenwashing and greenhushing, urging media professionals to scrutinize sustainability claims. Nigeria has adopted the International Sustainability Standards Board's IFRS S1 and IFRS S2 frameworks, with early adoption in 2023, voluntary reporting from 2024 to 2027, and mandatory reporting for public interest entities from 2028. Small and medium enterprises will be required to comply from 2030.
Chinwe Kalu's emphasis on media understanding of ESG frameworks reveals a critical dependency on journalists to bridge the transparency gap ahead of Nigeria's 2028 mandate. With companies already adopting IFRS S1 and S2 standards but failing to communicate compliance clearly, the risk of eroded public trust grows despite technical progress.
The broader context shows Nigeria positioning itself within a global ESG-driven financial system valued at $30 trillion to $40 trillion, where non-compliance could trigger investor withdrawal and higher borrowing costs. Projections of up to 8 per cent GDP loss from climate inaction and annual losses from sea level rise and corruption further underline the economic stakes embedded in ESG adherence.
Ordinary Nigerians, especially those in the informal sector which accounts for over 85 per cent of employment, stand to lose access to sustainable job creation and resilient infrastructure if ESG commitments remain unenforced. Weak media scrutiny may allow public and private entities to avoid accountability, leaving economic vulnerabilities unaddressed even as deadlines approach.
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