Civil Society Legislative Advocacy Centre (CISLAC) has called for an urgent review of Nigeria’s sustainability framework in the banking sector following the release of a new policy assessment report that exposes significant gaps in environmental, social, and governance, ESG, compliance.
The organisation said the findings underscore the need for stronger regulatory oversight and more robust implementation of sustainability standards across financial institutions.
Speaking at the launch of the report in Abuja, Thursday, Executive Director of CISLAC, Comrade Auwal Ibrahim Musa Rafsanjani, said the findings revealed weak commitment by Nigerian banks to responsible finance despite existing regulatory requirements.
The report, titled: “How Four Banks in Nigeria Are Responding to Global ESG Compliance Standards,” assessed Access Bank, Standard Chartered Bank, United Bank for Africa, and Zenith Bank against more than 400 global ESG indicators.
According to Rafsanjani, the banks recorded an overall average score of 1.7 out of 10, indicating that while basic compliance requirements are met, sustainability principles were not fully integrated into core financing decisions.
“The findings are both revealing and concerning. In Nigeria, compliance has not translated into real commitment,” he said.
The report highlighted significant shortcomings in tax transparency, with all four banks scoring zero due to lack of disclosure on country-by-country reporting and exposure to tax havens.
It also noted poor performance in climate action, with an average score of 0.9, raising concerns over continued financing of high-emission sectors without credible transition plans.
Rafsanjani further pointed to weak commitments to human rights, biodiversity protection, and host community welfare, warning that profit-driven financing continues to overshadow environmental and social considerations.
While some progress was recorded in internal policies such as labour standards, gender equality, and anti-corruption measures, the report noted that these gains are undermined by gaps in how banks finance external projects.
Describing the situation as a systemic challenge, Rafsanjani said the Nigerian Sustainability Banking Principles introduced in 2012 are outdated and promote “tick-box compliance” rather than meaningful accountability.
He called on the Central Bank of Nigeria, the Chartered Institute of Bankers of Nigeria, the Bank Directors Association of Nigeria, relevant committees of the National Assembly, and banking leaders to convene a multi-stakeholder roundtable to review and update the ESG framework.
The proposed reforms, he said, should align Nigeria’s sustainability standards with global best practices and ensure transparency, accountability, and measurable impact.
Rafsanjani emphasised that the report was intended as a constructive tool to drive reform rather than criticise, urging banks to move beyond minimum compliance and adopt genuine corporate responsibility.
“The future of finance is sustainable, and institutions that fail to adapt risk long-term instability,” he warned.
He added that Nigeria has the potential to lead sustainable finance efforts in Africa if stakeholders demonstrate commitment, collaboration, and accountability.
The report was produced by CISLAC in collaboration with the Fair Finance Nigeria Coalition and partners including BudgIT, Policy Alert, CODE, STEPS, and Oxfam.
Rafsanjani concluded by urging stakeholders to treat the report as a starting point for transformative change toward a more inclusive and environmentally responsible banking sector.
