The Central Bank of Nigeria (CBN) has called for bold environmental, social and governance (ESG) reforms, describing sustainable finance as vital to unlocking Africa’s economic potential.

Philip Ikeazor, CBN Deputy Governor for Financial System Stability, made the call on Wednesday at the 2026 Sustainability and ESG Conference in Lagos.

The conference was organised by the Financial Institutions Training Centre (FITC) and brought together policymakers, regulators, financial institutions, and sustainability experts.

Represented by Mike Ononugbo, Mr Ikeazor said Africa was warming rapidly and facing its worst climate crisis in more than a decade.

He said recent floods across major West African coastal cities showed climate-related risks had become immediate threats rather than distant possibilities.

“Climate-related risks are no longer distant possibilities but present reality,” he said.

Mr Ikeazor said environmental stewardship was essential for protecting natural resources while sustaining economic growth across the continent.

He noted that although Africa had access to initiatives such as the Africa Carbon Market Initiative and the Green Climate Fund, major financing gaps persisted.

According to him, green finance would channel investments into renewable energy, low-carbon projects, and environmentally sustainable businesses.

He said green bonds, sustainability-linked loans, and green equity remained critical instruments for accelerating Africa’s low-carbon transition.

Mr Ikeazor said Africa remained the world’s second-lowest performing region in green finance despite facing severe climate-related challenges.

He added that Nigeria ranked 45th among the world’s 55 largest economies on the Global Finance Development Index, below the African average.

According to him, the federal government and the CBN introduced initiatives to expand green finance and support Nigeria’s net-zero emissions target by 2060.

He said the CBN had integrated sustainable finance principles into banking regulations to encourage increased investment in environmentally sustainable projects.

Mr Ikeazor expressed confidence that the conference would strengthen collaboration among governments, businesses, and financial institutions to advance sustainable development.

Also speaking, the executive secretary and chief executive officer of the Financial Reporting Council of Nigeria, Rabiu Olowo, described sustainability as a business necessity.

Represented by Ezinwanne Ilodibe-Nnoruka, Mr Olowo said sustainability had moved beyond corporate philanthropy and public relations into a strategic business priority.

He said sustainability performance would increasingly determine competitiveness, investment attractiveness, and long-term institutional resilience.

According to him, Nigeria can become a leading destination for sustainable investment through stronger governance, greater transparency, and improved decision-making.

He said sustainability-related financial disclosures were strategic tools for building trust, attracting long-term capital and strengthening investor confidence.

Mr Olowo said the FRC was implementing Nigeria’s sustainability reporting roadmap alongside regulators, professional bodies, industries and other stakeholders.

He urged organisations to move beyond compliance by prioritising implementation, innovation and measurable impact through stronger collaboration.

Also speaking, chairperson of the MTN Foundation, Mosun Belo-Olushoga, described ESG principles as strategic drivers of economic growth and institutional resilience.

She said investors increasingly evaluated businesses beyond profitability, placing greater emphasis on governance, resilience, and long-term value creation.

Ms Belo-Olushoga noted that Africa contributed the least to global carbon emissions but suffered disproportionately from climate-related risks.

She said Africa’s renewable energy resources, youthful population, and abundant natural wealth offered immense opportunities for sustainable development.

Ms Belo-Olushoga, however, warned that those advantages would not automatically deliver prosperity without responsible leadership and strong institutions.

She urged governments, businesses, financial institutions, and development partners to embed sustainability into their long-term strategies rather than treat it as compliance.

(NAN)