Nigeria’s ESG Report Card: Progress is real, but the silence on just transition is deafening

Nigeria's top 30 listed companies have begun to produce standalone sustainability reports, with 13 companies issuing reports from 2022 to 2024. Eight of these companies have earned an "Excellent" rating on Sustainable Stories Africa's 25-point ESG framework. However, despite these achievements, three critical gaps have emerged: the absence of external assurance, weak Scope 3 disclosure, and zero just-transition planning.

These gaps threaten to undermine the progress made by these companies. The Financial Reporting Council of Nigeria is advancing a phased roadmap aligned with IFRS S1 and S2, with mandatory reporting set to begin in 2028. This presents a critical moment for Nigerian corporations, as they must now report with the credibility demanded by global capital.

While some companies are setting a high bar for ESG reporting, others lag on basic disclosures, such as external assurance and Scope 3 data. The cost of not addressing these gaps is significant, as global capital architecture is shifting towards sustainability-linked finance. Companies unable to demonstrate credible ESG performance and a just-transition plan may be excluded from future development finance.

The opportunity for Nigerian corporations to write their sustainability story on their own terms is significant, but the clock is ticking.