Nigeria’s Securities and Exchange Commission (SEC) has announced that mandatory Environmental, Social and Governance (ESG) reporting will become effective from 2027 for large public interest entities, marking a significant step in strengthening corporate transparency and aligning the country’s capital market with global sustainability standards.
Speaking at the 2026 FITC Sustainability and ESG Conference, SEC Director-General Dr. Emomotimi Agama said the implementation will follow a phased approach designed to give businesses sufficient time to prepare for the new reporting requirements.
Under the timetable, large public interest entities must begin mandatory ESG disclosures in 2027. Other public interest entities will be required to comply from 2028, while small and medium-sized enterprises (SMEs) have until 2030 to adopt the framework.
The new reporting regime is aligned with the International Sustainability Standards Board (ISSB) IFRS S1 and IFRS S2 standards. These globally recognised standards establish a consistent framework for companies to disclose sustainability-related financial risks and climate-related information, enabling investors to make more informed decisions.
According to Agama, adopting internationally accepted ESG reporting standards will improve the credibility of Nigerian companies, enhance transparency in the capital market, and strengthen their ability to attract both domestic and international investment.
He noted that investors are increasingly incorporating ESG performance into their investment decisions, making high-quality sustainability disclosures an important factor in accessing long-term capital. Companies with robust ESG reporting are also better positioned to identify operational risks, strengthen corporate governance, and improve resilience against environmental and social challenges.
The SEC also signalled that compliance will be backed by regulatory enforcement. Agama warned that companies that fail to provide adequate sustainability disclosures or submit poor-quality reports could face sanctions under the Commission’s regulatory framework.
The warning underscores the regulator’s determination to ensure ESG reporting becomes an integral part of corporate governance rather than a voluntary exercise.
To meet the implementation deadlines, the SEC urged companies to begin strengthening their internal governance structures, improve data collection and reporting systems, and build the technical capacity needed to comply with the new standards.
Market analysts say the phased rollout gives businesses an opportunity to prepare while positioning Nigeria’s capital market to remain competitive as global investors increasingly prioritise sustainability, climate risk management and transparent corporate reporting. The initiative is also expected to reinforce investor confidence and support the long-term development of Nigeria’s sustainable finance ecosystem.
