The Financial Institutions Training Centre (FITC) has issued a clarion call to Nigerian businesses, urging them to embrace Environmental, Social, and Governance (ESG) principles as a cornerstone of long-term profitability. During the FITC Sustainability and ESG Conference 2025, themed “Building a Prosperous Future: Unlocking Growth Opportunities through Sustainability and ESG Innovation,” industry experts emphasized the imperative for companies to integrate ESG considerations into their core strategies, not merely as a peripheral activity, but as a fundamental driver of value creation. This shift transcends mere compliance and represents a paradigm shift in how businesses operate, fostering a symbiotic relationship between corporate success and societal well-being.
The conference underscored the growing global recognition of ESG as a critical factor in assessing a company’s long-term viability and its ability to attract investment. Businesses that proactively adopt ESG principles are increasingly viewed as more sustainable, resilient, and attractive to investors seeking both financial returns and positive social impact. Fabian Ajogwu, SAN, Chairman of the Advisory Board, FITC Sustainability Institute, described the initiative as a “call to action,” highlighting the competitive advantage that ESG-focused companies enjoy in accessing cheaper financing, particularly crucial in the current landscape of infrastructure development. He stressed that ESG considerations are no longer confined to boardroom discussions but have become tangible factors impacting operational costs and overall efficiency.
Ajogwu illustrated the practical implications of ESG integration with examples of simple yet impactful changes, such as transitioning to paperless operations, which not only reduce costs but also minimize environmental footprint. He emphasized the importance of continuous improvement and adaptation, citing Nigeria’s pioneering role in issuing a green bond as a commendable step, but urging businesses to continually evolve their practices to meet the ever-rising global ESG standards. Investors, he noted, are now scrutinizing a company’s entire value chain, from supply chain management to environmental impact and community engagement, when making investment decisions. This holistic assessment underscores the far-reaching implications of ESG and its impact on a company’s reputation and access to capital.
The conference highlighted the transformative potential of ESG to reshape industries and drive innovation. Companies operating in traditional sectors, such as oil and gas, are rebranding themselves as energy companies, signifying a strategic shift towards renewable energy sources. This transition reflects a growing awareness of the need to decarbonize operations and align with global efforts to combat climate change. Furthermore, companies that embrace local manufacturing of sustainable technologies, such as solar components, are poised to attract cheaper financing due to their positive ESG impact. This demonstrates the tangible benefits of integrating ESG considerations into business strategy, creating both economic and environmental value.
Femi Shobanjo, Chief Executive Officer of NGX Regulation Limited, reinforced Nigeria’s readiness to align with global ESG standards, highlighting collaborative efforts with regulatory bodies and international organizations to prepare for the implementation of International Financial Reporting Standards S1 and S2 frameworks. The significant increase in sustainability reporting among top capitalized companies on the Nigerian Exchange, from 30% five years ago to 70% currently, demonstrates a growing commitment to transparency and accountability in ESG performance. This progress indicates a positive trend towards integrating ESG considerations into corporate governance and reporting practices.
The establishment of the FITC Sustainability and ESG Institute underscores the organization’s commitment to driving ESG knowledge development and capacity building across the financial services sector. Dr. Chizor Malize, CEO of FITC, emphasized the correlation between ESG compliance and superior financial performance, highlighting that ESG-compliant organizations consistently outperform their peers. These organizations, she noted, become custodians of the environment, drivers of social impact, and champions of robust governance frameworks that ensure institutional longevity. This emphasizes the multifaceted benefits of ESG adoption, extending beyond financial performance to encompass environmental stewardship and social responsibility. The FITC’s proactive approach in empowering businesses with the necessary knowledge and tools to navigate the ESG landscape underscores the organization’s commitment to fostering a sustainable and prosperous future for Nigerian businesses. By embracing ESG principles, companies can unlock new growth opportunities, enhance their resilience, and contribute to a more equitable and sustainable future for all stakeholders.
