Environmental, social, and governance principles are transforming Nigeria’s corporate landscape, reshaping how businesses are valued and how investors make decisions, says Eugene Itua, the CEO of Natural Eco Capital.

This was the central theme of a paper presented by Mr Itua, an accredited UNDP trainer, at the BioEdge Environmentals training webinar on ESG and sustainability reporting frameworks for Nigerian businesses, held on Thursday.

Mr Itua explained that ESG is no longer a peripheral consideration but strategic for companies seeking competitiveness in a global economy transitioning to net-zero emissions, pointing out that Nigerian firms, particularly small and medium-sized enterprises and financial institutions, must adapt quickly to align with international sustainability standards such as IFRS S1 and S2.

In his presentation, Mr Itua highlighted how the three pillars of ESG (environmental, social, and governance) directly influence corporate valuation.

According to him, efficient resource use and emissions reduction lower costs and regulatory risks. Dangote Cement’s investment in alternative fuels was cited as a case study that boosted profitability while cutting emissions.

Additionally, Mr Itua explained that employee welfare and diversity initiatives could enhance brand reputation, noting that Access Bank’s women-in-leadership programme improved staff retention and strengthened its public image. 

In terms of governance, the Eco Capital boss underlined that transparency and board diversity build investor trust. MTN Nigeria’s governance reforms were credited with restoring confidence after regulatory challenges.

Global research suggests that companies with strong ESG profiles can command a valuation premium of 10–15 per cent, underscoring the financial benefits of sustainability integration. Therefore, Mr Itua disclosed that investors are demanding data-driven ESG disclosures, with financing costs directly tied to ESG performance.

“Seplat Energy’s transparency in ESG reporting attracted foreign institutional investors, lowering its financing costs,” said Mr Itua. “Nigeria’s adoption of IFRS S1 and S2 is expected to further standardize disclosures, aligning local firms with global expectations.”

He also stressed the strategic shift from philanthropy-based corporate social responsibility to measurable ESG practices. GTBank’s move from charity CSR to ESG-aligned community development was highlighted as a turning point that improved investor perception.

Despite progress, challenges remained, Mr Itua cautioned.

Many Nigerian firms struggle with “spreadsheet sprawl”, siloed teams, and a compliance-first mindset. SMEs in particular face capacity gaps, said Mr Itua.

“Natural Eco Capital is working with partners such as Synapsys Octoplex and ABANX to introduce governance automation and AI-driven compliance reporting to close these gaps,” he added.

Meanwhile, he presented the UNDP’s SDG Impact Standards as a framework for integrity and long-term value creation.