Key challenges include:
- Limited ESG awareness and expertise,
- Weak regulatory enforcement,
- Inadequate ESG data and reporting standards,
- High cost of ESG compliance,
- Low investor demand for ESG disclosures.
In Nigeria, regulatory initiatives like the NSBP and NGX Sustainability Disclosure Guidelines have helped, but consistent enforcement and stakeholder engagement are still evolving.
One of the major challenges encountered in the smooth adoption of ESG in emerging markets like Nigeria can be highlighted as follows:
(i) Weak or Poor Institutional framework to enforce its implementation, monitoring, and appraisal;
(ii) Lack of Strong Stakeholders Engagement;
(iii) Poor or Weak ESG indices;
(iv) Lack of comprehensive knowledge of what should constitute the tripartite components; Environmental, Social, and Governance frameworks;
(v) Inadequate funding or financial supports to undertake comprehensive ESG assessment by the relevant stakeholders;
(v) Lack of research experts in the area of ESG has also impeded the smooth adoption of ESG particularly in emerging markets like Nigeria.
Hello, I am from Iraq, majoring in Economics - Public Finance. I would like to write a joint research paper between us. I would be honored by that.
Dear Yusuf Ja'afar, I do agree with your position on major challenges encountered in the smooth adoption of ESG in emerging markets like Nigeria
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