Nigerian Businesses Told to Make Sustainability a Core Business Strategy

Nigerian companies can no longer afford to treat sustainability as a box-ticking exercise or something reserved for annual reports, industry leaders have said.

At the inaugural Sustainability Conference of the Sustainability Professionals Institute of Nigeria (SPIN) in Lagos, business executives, investors, policymakers and sustainability professionals called on companies to make sustainability part of their core business strategy as economic, climate and regulatory pressures continue to reshape the business environment.

The conference, themed “The Adaptive Enterprise: Sustainability Strategies for Challenging Times,” focused on how businesses can build resilience while creating long-term value in an increasingly uncertain operating environment.

From Compliance to Business Strategy

President of SPIN, Prof. Kenneth Amaeshi, argued that sustainability frameworks used by Nigerian businesses should reflect the country’s economic and institutional realities rather than simply replicate standards developed in other markets.

His position reflects a growing debate among businesses: sustainability is becoming less about producing reports and more about how companies make decisions, allocate capital and manage risk.

Speakers at the conference stressed that environmental, social and governance considerations should be incorporated into investment decisions, risk management, capital allocation and corporate governance, rather than being handled as a separate reporting function.

Executive Director and Chief Investment Officer of the Nigeria Sovereign Investment Authority, Kolawole Owodunni, said businesses are navigating a combination of economic volatility, climate change, geopolitical tensions, technological disruption and regulatory changes.

For businesses, the commercial consequences are significant.

Climate risks, resource constraints, regulatory changes and evolving expectations from consumers and investors can affect operating costs, supply chains, market access and ultimately company value.

Sustainability Is Becoming an Investment Issue

The conversation is also moving beyond corporate responsibility into finance.

Owodunni said sustainable finance should not be limited to green bonds but should encompass stronger governance, transparency and the management of environmental and social risks.

For investors, this means sustainability is increasingly being assessed through the lens of business performance and risk.

Africa’s structural challenges could also create investment opportunities in areas such as energy, healthcare, infrastructure and climate resilience, according to Owodunni.

The challenge, however, extends beyond securing capital. Impact investors are increasingly looking for projects that can demonstrate measurable environmental and social outcomes alongside financial returns.

Chief Executive of Impact Investors Foundation, Etemore Glover, noted that Africa’s financing challenge is not simply a lack of capital, but also structural barriers that prevent available capital from reaching viable opportunities.

Boards and CFOs Face Greater Responsibility

Embedding sustainability into business operations also requires stronger leadership involvement.

PwC Nigeria Partner, ESG and Climate Change, Marilyn Obasa-Osula, highlighted fragmented responsibilities within organisations and the importance of securing support from boards and chief financial officers.

Meanwhile, FirstBank Group Executive Director, Risk, Biyi Olagbami, said compliance should be viewed as a minimum requirement rather than a competitive advantage. He also cautioned against applying international sustainability standards without adapting them to Nigeria’s local realities.

The message is increasingly clear: companies cannot rely on sustainability teams alone to drive the agenda. It has to become part of the wider decision-making structure.

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

The Business Case for Sustainability

For corporate leaders, one of the biggest shifts is the need to demonstrate measurable business value.

EY West Africa Executive Director and Partner, ESG and Climate Change, Eunice Sampson, said corporate leaders increasingly want sustainability professionals to answer three key questions: What is the risk? What regulation applies? And what value does the initiative create?

Seplat Energy Director of External Affairs and Social Performance, Chioma Afe, similarly argued that sustainability should be treated as part of risk management and corporate strategy rather than a cost centre.

This also signals a shift away from CSR programmes centred primarily on isolated charitable activities. Speakers called for greater board ownership and a stronger focus on material business issues with measurable outcomes.

Nigeria Moves Towards Professionalising Sustainability

The conference also highlighted efforts to strengthen sustainability as a formal profession in Nigeria.

SPIN Vice President, Dr Ini Abimbola, announced plans by the institute to pursue chartered status and establish a formal licensing framework for sustainability practitioners, supported by continuing professional development.

The move comes as companies face increasing pressure to demonstrate that sustainability commitments are translating into actual changes in business practices rather than remaining confined to corporate communications and annual reports.

For Nigerian businesses, the bigger challenge will be finding the right balance between international expectations and local realities. While global sustainability standards remain important for comparability and access to capital, conference speakers stressed that their effectiveness depends on how well they are adapted to Nigeria’s operating environment.

Ultimately, the sustainability conversation is moving from “What are companies reporting?” to “How is sustainability changing the way companies operate?”

For businesses navigating Nigeria’s economic and regulatory pressures, that distinction could increasingly determine not only their compliance position, but also their ability to manage risk, attract capital and create long-term value.