Nigerian Banks Score Low in First ESG Policy Assessment

A recent report by the FFNG Coalition, supported by Oxfam, reveals that Nigerian banks, including Access Bank, Standard Chartered, United Bank for Africa (UBA), and Zenith Bank, have significantly underperformed in meeting global Environmental, Social, and Governance (ESG) standards, achieving an average score of only 1.7 out of 10. This assessment marks Nigeria's first comprehensive review of its banking sector's compliance with global ESG benchmarks.

The report indicates critical deficiencies in tax transparency, climate responsibility, and corporate accountability, with banks scoring 0.0 in tax transparency, reflecting failures in disclosing financial reports and operations in tax havens. Additionally, the banks scored 0.9 in climate-related performance, underscoring ongoing financing of high-emission sectors without credible transition plans.

The report calls for urgent reforms in the regulatory framework, particularly the outdated 2012 Nigerian Sustainable Banking Principles (NSBP), and emphasizes the need for Nigerian banks to adopt more robust transparency and sustainability practices aligned with global standards.