The Story Begins: A Wake-Up Call from the Niger Delta
Back in the 1950s, Nigeria’s oil boom promised prosperity. But as oil exploration intensified, so did environmental degradation, especially in the Niger Delta. Rivers were poisoned, communities were displaced, and public trust eroded. This wasn’t just an ecological crisis; it was the start of Nigeria’s ESG journey.
Fast forward to the early 2000s, when poor corporate governance led to the collapse of major banks like Oceanic and Intercontinental. It became clear: Nigeria needed a new way to define business success, one that looked beyond profits.
Enter ESG: A New Standard for Responsible Business
As global expectations around sustainability grow louder, Nigerian businesses are standing at a pivotal crossroads. The recent commitment by the Federal Government to adopt the International Sustainability Standards Board (ISSB) framework is a defining moment, one that marks the beginning of a new era for Nigerian businesses.
It signaled that the era of voluntary Environmental, Social, and Governance (ESG) gestures is giving way to structured, standards-driven reporting, a shift that brings both urgency and opportunity. It’s no longer enough to show strong earnings. Stakeholders want to know:
- What’s your carbon footprint?
- How do you treat your employees?
- Are your governance practices transparent and fair?
In short, financial health is no longer the only metric that matters.
To help companies navigate this journey, IRIS CARBON® and Opex Consulting hosted their first joint webinar: “ESG Reporting in Nigeria: Reality, Readiness, and Roadblocks for ISSB Adoption.”
This blog captures the top takeaways from that session, offering clear and practical ESG best practices Nigerian companies can adopt right now to stay ahead of the curve.
Understanding ESG: More Than a Compliance Requirement
The session opened with a foundational overview of ESG, what it means, and why it matters.
ESG is about how businesses impact the environment, serve society, and are governed responsibly. It goes beyond financial metrics, it’s about purpose.
Oluwaseun Akinyebi, Opex Consulting
Speakers connected ESG to a deeper responsibility, referencing biblical principles on stewardship and sustainability.
As Oluwaseun put it,
If man was created to tend and keep the earth, then ESG is how we live that purpose through our work.
This perspective helped ground the conversation not only in regulation, but in relevance.
The ISSB Mandate: What Nigerian Companies Need to Know
Nigeria has signaled its commitment to global sustainability standards. Following ISSB Chair Emmanuel Faber’s visit in 2023, the Federal Government endorsed the adoption of IFRS S1 and S2, standards that define how businesses report sustainability and climate-related risks.
The question isn’t whether ESG is coming. It’s: are you ready to lead?
Farzad Wadia, IRIS CARBON®
Here’s a simplified timeline:
- Phase 1 (2023): Early adopters (mostly banks) begin readiness assessments.
- Phase 2 (2024–2027): Voluntary adopters begin ESG integration and test disclosures.
- Phase 3 (2028 onwards): Mandatory ISSB-aligned ESG disclosures begin for all Public Interest Entities and SMEs.
ESG Reporting in Nigeria: 4 Must-Do Steps Before 2028
Here are the top takeaways and best practices every Nigerian company needs to know.
1. Start Now, Even If It’s Voluntary
The sooner you start, the stronger you lead.
IRIS CARBON® x Opex Consulting
One of the most pressing insights from the webinar was the clarity and urgency of Nigeria’s regulatory timeline. It was clear in the discussion: 2028 will arrive faster than most businesses expect.
One of the biggest misconceptions is that ESG reporting can wait until it becomes mandatory in 2028. But early adopters already understand the strategic advantage of starting now.
Best Practice: Run a dry reporting cycle in 2024 or 2025. Use it to assess your data gaps, align roles, and prepare your reporting teams.
Why it matters:
- Avoid last-minute compliance stress
- Build a culture of sustainability
- Engage internal teams early
2. Build a Cross-Functional ESG Taskforce
ESG is often mistaken as a finance or compliance-only function. But successful ESG reporting requires coordination across departments from HR and IT to Procurement and Operations.
ESG touches every department:
- HR for diversity and inclusion metrics
- Finance for climate risks and sustainability-linked KPIs
- IT for data access and traceability
- Supply chain for Scope 3 emissions
- Legal/compliance for governance reporting
That’s why ESG reporting fails when it’s siloed and succeeds when cross-functional ownership is established.
Best Practice: Set up a dedicated, cross-functional ESG team with clear responsibilities for data ownership, validation, and reporting.
Pro Tip: Appoint an ESG lead or Chief Sustainability Officer to steer the governance and strategy aspects.
Perhaps the most important operational takeaway was this:
Whose job is ESG? Everyone’s.
Farzad Wadia, IRIS CARBON®
3. Align Your Reporting with Global Standards
Nigeria’s ESG mandate is aligned to the ISSB’s IFRS S1 (General Sustainability) and S2 (Climate-related Disclosures). This includes disclosures around governance, strategy, risk management, metrics, materiality, and Scope 1–3 emissions.
Best Practice: Map your existing ESG data and metrics to the ISSB standards. Even if you’re using GRI or SASB today, begin aligning with IFRS S1 & S2.
Need help?
IRIS CARBON®’s ESG reporting software supports multi-framework mapping and provides gap analysis reports.
4. Invest in ESG Data Infrastructure
One of the biggest challenges highlighted during our webinar was manual data collection and spreadsheet sprawl. Without structured systems in place, ESG reporting can quickly become error-prone and resource-heavy.
Best Practice: Automate ESG data collection, validation, and reporting. Use purpose-built tools to reduce manual effort, ensure auditability, and maintain data quality year-round.
Organizations using ESG software reported up to 40–45% time savings in reporting cycles and significantly fewer errors.
Bonus Tip: Use This Window (2024–2027) Wisely
With Phase 2 of Nigeria’s ISSB roadmap underway, companies now have a window to prepare voluntarily, before it becomes mandatory. This is your opportunity to:
- Define your ESG roadmap
- Build internal ESG capability
- Avoid regulatory penalties in 2028
Final Word: From Obligation to Opportunity
This first joint webinar was just the beginning of a larger conversation, one where ESG is not just a regulatory checkbox, but a pathway to resilience, stakeholder trust, and sustainable growth in Nigeria.
We’re not just complying with ISSB, we’re aligning with a global shift in how businesses prove their value to society.
IRIS CARBON® x Opex Consulting
ESG reporting will soon be as standard as financial reporting. The organizations that start early will not only meet the mandate, but they’ll also shape the market.
The tools are here. The standards are clear. The opportunity is now.
