The Federal Government has called on companies and corporations to prioritize the integration of Environmental, Social, and Governance (ESG) principles as a strategic measure to attract increased foreign direct investments (FDIs).
The appeal was made during the launch of the ESG Ratings Report by the Independent Project Monitoring Company (IPMC) in Lagos on Thursday.
The report assesses the performance of Nigerian financial services companies in adhering to ESG standards and serves as a critical tool for businesses and investors alike, both domestic and foreign, providing valuable insights into how companies are performing on ESG criteria.
Special Adviser to the President of the National Economic Council on Climate Change, Rukaiya El-Rufai, highlighted the importance of integrating ESG considerations into core business practices.
She stressed that strong ESG performance enhances a country’s attractiveness to foreign investors, stating its attendant contribution to the development of the economy.
According to her, “We need companies to be ESG fit because it is a major source of attracting foreign direct investment into Nigeria. ESG factors are no longer peripheral concerns; they are central to the resilience and long-term success of businesses. Companies that prioritize ESG are not only contributing to a more sustainable and equitable world but are also positioning themselves for value creation that not only ensures greater financial performance but embeds value levers that will sustain the performance.”
