Nigeria is moving toward mandatory Environmental, Social and Governance (ESG) reporting for companies by 2028, as sustainability experts urge journalists and editors to closely track corporate risks, climate exposure and governance practices that could affect businesses and the wider economy.
Speaking at the ESG Awareness Training organised for Nigerian editors, Agatha Afemikhe, assistant manager for ESG risks and disclosures at Harley Reed, said sustainability reporting has become a key part of modern financial and economic reporting.
She said ESG is now used globally to assess how companies manage climate risks, labour practices, ethics, and corporate accountability.
“ESG issues are no longer soft news,” she said, noting that environmental damage, governance failures and social issues can affect company valuation, investor confidence and public trust.
The training highlighted that the global ESG investment market is now valued at between $30 trillion and $40 trillion, showing how sustainability considerations are shaping capital flows and corporate strategy worldwide.
Experts at the event said regulators across many countries are tightening sustainability disclosure rules, forcing companies to publish more detailed information about climate risks and governance practices.
Nigeria has already taken a major step by adopting the International Sustainability Standards Board disclosure frameworks known as IFRS S1 and IFRS S2. The standards were launched in the country in June 2023 through collaboration between the Financial Reporting Council of Nigeria, the International Sustainability Standards Board and NGX Regulation Limited.
Under the roadmap outlined during the training, companies began early adoption in 2023, while voluntary reporting will continue between 2024 and 2027. Mandatory adoption for public interest entities is expected to begin in 2028, with small and medium-sized businesses expected to comply from 2030.
Government organisations are also expected to implement the standards from 2028.
According to the presentation, failure to comply with ESG reporting requirements could lead to fines, reputational damage, investor withdrawal and limited access to financing.
The training also warned that companies increasingly face accusations of greenwashing, a practice where businesses exaggerate their environmental achievements, or greenhushing, where they avoid public disclosure of sustainability information.
Afemikhe said journalists must develop the skills to analyse ESG reports and verify corporate claims as regulators and investors place more emphasis on transparency.
Participants were also briefed on the growing climate risks facing Nigeria. Rising temperatures, more extreme heat days and heavier rainfall are contributing to frequent flooding and higher disaster-related spending.
Experts said long-term projections show climate change could reduce Nigeria’s gross domestic product by about eight percent, while rising sea levels could cost the country between 0.1 percent and 0.4 percent of GDP each year.
Beyond environmental risks, the training noted that social and governance issues remain major concerns across Africa. These include widespread informal employment, corruption, child labour and gender inequality.
Data presented at the event showed that more than 85 percent of workers in Africa operate without formal contracts or protections, while the continent loses about $148 billion annually to corruption.
Case studies discussed during the session showed how ESG failures have triggered global corporate scandals and regulatory action. These included oil spills in Nigeria’s Niger Delta, labour abuse allegations in African agribusiness operations, and corruption investigations in South Africa.
Afemikhe said media organisations play a key role in exposing such issues and shaping public debate. She added that accurate ESG reporting strengthens accountability and ensures that businesses, investors and governments are held responsible for their environmental and social impact.
“As ESG becomes central to global finance and regulation, journalists must understand the risks, data and disclosures behind the headlines,” Afemikhe said.