NIGERIAN FIRMS URGED TO MAKE SUSTAINABILITY PART OF CORE BUSINESS DECISIONS

The Sustainability Professionals Institute of Nigeria has called on companies to move sustainability beyond a routine reporting or regulatory requirement and make it an integral part of their overall business strategy.

The call was made during SPIN’s inaugural Sustainability Conference in Lagos, where business leaders, policymakers, investors, financial institutions and sustainability professionals examined how organisations can remain resilient and create long-term value amid increasing economic, environmental and regulatory pressures.

The conference, held under the theme, “The Adaptive Enterprise: Sustainability Strategies for Challenging Times,” focused on the need for Nigerian businesses to rethink how they approach environmental, social and governance issues. Participants argued that sustainability should influence major corporate decisions rather than remain a separate function primarily concerned with producing reports.

President of SPIN, Prof. Kenneth Amaeshi, stressed the importance of developing sustainability frameworks that take Nigeria’s specific economic and institutional circumstances into account. He cautioned against simply importing standards designed for other markets without considering whether they adequately address the realities faced by Nigerian businesses.

Amaeshi argued that sustainability should be adapted to local conditions so that it becomes useful to Nigerian organisations rather than another externally imposed framework. He urged businesses and professionals to develop approaches capable of addressing the country's unique economic, social and environmental challenges.

Speaking on behalf of the Managing Director and Chief Executive Officer of the Nigeria Sovereign Investment Authority, Aminu Umar-Sadiq, the NSIA Executive Director and Chief Investment Officer, Kolawole Owodunni, said sustainability could no longer remain on the sidelines of corporate decision-making.

According to Owodunni, organisations are operating in an environment characterised by economic uncertainty, climate change, geopolitical tensions, technological disruption and changing regulations. He maintained that businesses must therefore incorporate sustainability considerations into areas such as investment decisions, risk management, capital allocation and corporate governance.

The discussion also highlighted the growing commercial importance of sustainability. Speakers noted that climate-related risks, resource shortages, regulatory changes and evolving expectations from consumers and investors can directly influence companies’ operating expenses, supply chains, market access and long-term value.

Owodunni further argued that sustainable finance should not be limited to green bonds or other specialised financial instruments. In his view, it should also encompass sound corporate governance, transparency and effective management of environmental and social risks.

He pointed to Africa’s development challenges as potential areas for investment, particularly in sectors such as energy, healthcare, infrastructure and climate resilience. According to him, addressing some of the continent’s structural problems could simultaneously create opportunities for sustainable economic growth and investment.

The NSIA executive also highlighted the changing expectations placed on sustainability professionals. He said practitioners would increasingly need to combine financial knowledge with regulatory expertise, data analysis, climate-risk assessment and impact measurement. Familiarity with emerging technologies, including artificial intelligence, was also identified as an increasingly valuable skill.

Discussions at the conference further examined the difficulty many organisations face in embedding sustainability into their internal structures. Partner for ESG and Climate Change at PwC Nigeria, Marilyn Obasa-Osula, identified fragmented responsibilities within organisations as one of the challenges, stressing the importance of securing the backing of boards and chief financial officers.

Senior Special Assistant to the President on Climate Finance and Stakeholder Engagement, Ibrahim Shelleng, meanwhile, drew attention to the gap that can exist between sustainability policies and their implementation. He also referenced ongoing collaboration involving the Ministry of Finance and the United Nations Development Programme towards developing a Nigeria-specific taxonomy for green investments.

Executive Director of Risk at FirstBank Group, Biyi Olagbami, said companies should view regulatory compliance as a basic requirement rather than a competitive advantage. He also cautioned against adopting international sustainability standards without adapting them to the Nigerian environment.

Chief Executive of CSR-in-Action, Dr Bekeme Masade-Olowola, similarly argued that the effectiveness of corporate sustainability programmes should ultimately be measured by how organisations make decisions, allocate capital and hold their executives accountable.

The conference therefore placed emphasis on a shift from sustainability as a documentation exercise to sustainability as a practical component of corporate strategy. Participants maintained that companies that integrate environmental, social and governance considerations into their core operations could be better positioned to manage emerging risks and identify new opportunities.

The discussions also reinforced the view that sustainability in Nigeria must be practical, locally relevant and connected to business performance. Rather than treating it solely as a compliance obligation, organisations were encouraged to use it as a tool for strengthening resilience, improving decision-making and creating lasting value.