Strengthening ESG education and capacity-building,
Developing local ESG data infrastructure and reporting frameworks,
Offering incentives (e.g., tax or capital relief) for ESG-aligned investments,
Encouraging investor activism and stakeholder engagement,
Ensuring consistent regulatory oversight and compliance monitoring.
Collaborative efforts between regulators, financial institutions, civil society, and international partners are essential for scalable ESG implementation.
Improving ESG adoption in Nigeria’s banking sector requires stronger regulation, capacity building, and operational integration. The Central Bank of Nigeria should enforce ESG-related policies, such as the Nigerian Sustainable Banking Principles, with clear benchmarks and incentives (Ogunleye & Nwankwo, 2024). Banks should invest in ESG training to embed sustainability into their decision-making processes (Adebayo & Mohammed, 2025), while also integrating ESG risks into their enterprise risk management systems to align with global standards, such as the TCFD (Eze & Aruofor, 2023). Collaborations with international bodies can provide technical support and best practices (Okonkwo, 2024), and improved data systems are needed for transparent ESG reporting (Nwachukwu, 2023).
Effective strategies include regulatory incentives, ESG capacity-building programs, integration of ESG metrics into credit assessments, and mandatory ESG disclosures for banks and stakeholders.
Dear Isdore Opara and Chuck A Arize, I do agreed with your positions. The effective strategies for Improving ESG in Nigerian banks include regulatory incentives, ESG capacity-building programs, integration of ESG metrics into credit assessments, and mandatory ESG disclosures for banks and stakeholders