Nigerian Banks Score Low on ESG Practices, Report Finds

A report by Fair Finance Nigeria assesses four leading banks—Access Bank, United Bank for Africa, Zenith Bank, and Standard Chartered Bank—against 400 international ESG indicators, revealing an alarming average score of 1.7 out of 10. This score reflects systemic weaknesses in Nigeria's financial sector regarding environmental and social justice.

The report, part of a global initiative by Fair Finance International, emphasizes the banks' failure to publicly disclose tax information, with all four scoring zero on tax transparency. This lack of transparency hinders economic growth and development, as illicit financial flows become easier to conceal.

Additionally, the banks' climate action commitments are criticized, with an average score of just 0.9 out of 10, despite Nigeria's vulnerability to climate change. The report raises urgent questions about the ethical practices of financial institutions in Nigeria, particularly as they continue to fund high-emission sectors without credible transition plans.