NGX regulation advocates for centralised ESG in Nigeria
By Esther Agbo
In a bid to streamline environmental, social, and governance (ESG) practices across industries, the Chief Executive Officer of NGX Regulation, Olufemi Shobanjo, has advocated for the establishment of a centralised ESG regulatory authority in Nigeria.
Speaking at the 2024 FITC Sustainability ESG Summit, themed: ‘From Vision to Action – Leading with Sustainability and ESG: Building a Sustainable Future and Green Finance,’ Shobanjo emphasised the necessity of a unified body to oversee and enforce ESG compliance.
He said, “A unified ESG regulatory body is essential to drive consistent compliance and foster a sustainable business environment.”
During his address, Shobanjo praised the efforts of the FITC Board and Management, highlighting the contributions of notable figures such as Phillip Ikeazor, a Fellow of the Institute of Chartered Accountants of Nigeria, and the CEO of the Financial Institutions Training Centre, Chizor Malize.
The recent launch of the ESG Sustainability Institute, an initiative he lauded, was cited as a significant advancement in promoting sustainability discussions and practices within the country.
Shobanjo asserted, “The launch of the ESG Sustainability Institute marks a significant milestone in advancing our sustainability goals. EcoTech’s transformation is a testament to the power of integrating ESG into core business strategies.”
He pointed out that while there are existing frameworks like the Climate Change Act and the Federal Competition and Consumer Protection Act, there remains a gap in comprehensive regulatory compliance across different sectors.
Shobanjo argued that a centralised ESG framework would not only foster uniformity in compliance but also enhance transparency and accountability.
This, he believes, would align Nigeria’s standards with both national and global benchmarks, positioning the country as a leader in ESG performance across the continent.
He said, “A unified ESG regulatory framework will position Nigeria as a leader in global ESG performance.”
Reflecting on Nigeria’s potential, Shobanjo expressed confidence that the nation could set a precedent for other African countries in the adoption of sustainable practices.
He concluded by reiterating NGX Regulation’s commitment to working alongside various stakeholders to realise these goals, underscoring that the country’s dedication to sustainability is vital for ensuring the economic prosperity and well-being of future generations.
