The Director-General of the Securities and Exchange Commission, Dr Emomotimi Agama, has flagged weak sustainability reporting among Nigerian companies, warning that gaps in disclosures could limit access to global capital.

Speaking in Abuja on Tuesday at the launch of the Nigerian Corporate Sustainability Report by Norrenberger Research, the analytical arm of Norrenberger Group, Agama said, “The fact that a meaningful number of listed companies still lack coherent sustainability disclosures or provide disclosures that are neither structured nor verifiable is a challenge we must confront collectively as a market.”

He noted that the report comes at a critical time in Nigeria’s capital market evolution, as global investors increasingly prioritise environmental, social and governance considerations in capital allocation decisions.

According to him, sustainability disclosures have moved beyond optional reporting standards to become central requirements for attracting long-term investment.

“Nigerian companies that wish to access the vast pool of patient, long-term capital must understand one unambiguous reality: the price of entry is disclosure. Credible, consistent, comparable, and verifiable disclosure,” he said.

Agama explained that globl capital markets have shifted, with institutional investors now using ESG performance as a primary basis for investment decisions rather than a secondary filter.

“They are no longer treating ESG considerations as filters. They are the primary determinants of capital allocation decisions,” he added.

The SEC boss said Nigeria was aligning with global sustainability standards, referencing ongoing engagement with international bodies to integrate disclosure frameworks into the domestic capital market.

He noted that the International Sustainability Standards Board has established global baselines for sustainability-related disclosures, which Nigeria is working to adopt and adapt to local realities.

He disclosed that the commission would respond to the report’s findings by strengthening regulatory guidance and deepening engagement with listed companies.

“We intend to strengthen our guidance on sustainability reporting, deepen engagement with listed companies on disclosure obligations, and create regulatory incentives for early adopters of robust sustainability frameworks,” he said.

Agama added that the move is backed by the Investment and Securities Act 2025, which gives the commission wider powers to align Nigeria’s capital market with global best practices.

He stressed that improving sustainability reporting is critical to unlocking capital needed to address Nigeria’s infrastructure deficit and drive economic transformation.

The SEC DG also highlighted the growth of Nigeria’s capital market, noting that market capitalisation has risen significantly in recent years to over N140tn.

He urged corporate organisations to use the sustainability report as a benchmark to improve their practices. “Sustainability is no longer a reputational accessory. It is a strategic imperative,” Agama said, warning that companies risk losing competitiveness if they fail to adapt to evolving global standards.

He added that the cost of ignoring sustainability requirements could outweigh compliance efforts in the long run.

Also, the Minister of State for Industry, Mr John Enoh, said Nigeria faces a persistent gap in reliable sustainability data, warning that transparent and standardised ESG information is critical for policymaking, investment decisions, and long-term economic planning.

The minister, who was represented by the Director of Industrial Development at the ministry, Mrs Muyiwa Ajayi-Ade, said the Nigerian Corporate Sustainability Report provides a credible benchmark for assessing ESG performance and promoting transparency and accountability across industries.

He added that global investors are increasingly prioritising markets with strong sustainability credentials, noting that strengthening ESG practices among Nigerian firms would improve competitiveness and attract long-term foreign capital.

Enoh said sustainable economic growth, industrial transformation, and climate resilience cannot be achieved by the government alone, stressing the need for stronger collaboration between the public and private sectors.

In his remarks, the Group Managing Director and Chief Executive Officer of Norrenberger Group, Mr Tony Edeh, said the report represents the first comprehensive and independent assessment of sustainability practices in Nigeria’s corporate sector, noting that previous disclosures were fragmented and lacked structure.

He said the findings show a clear link between ESG compliance and financial performance, adding that “companies that are ESG compliant outperform their peers in the market by 28 to 30 per cent.”

Edeh disclosed that a small number of firms currently dominate ESG compliance within the market, noting that “only 21 companies… represent the prime of Nigerian capital markets,” but account for a significant share of market value.

He expressed optimism that more firms would adopt sustainability standards, noting that the remaining companies are expected to become ESG-compliant before 2028, in line with regulatory timelines.

According to him, beyond regulatory requirements, ESG adoption improves operational efficiency and value creation, stressing that it “is not just a compliance framework, but a framework for competitive operations” that benefits shareholders, employees, communities, and regulators.

Presenting the report, the Chief Research Officer at Norrenberger Group, Mr Samuel Oyekanmi, said it was developed to bridge the gap in sustainability and climate data, noting that many investors currently make decisions without reliable information.

He explained that the firm analysed 160 listed companies, then narrowed the sample to 46 firms with sustainability disclosures, from which 21 met its internal ESG assessment criteria.

According to him, the assessment covered environmental, social, and governance indicators, including carbon emissions, employee welfare, gender diversity, and board structure.

Oyekanmi said the findings showed that the 21 ESG-compliant firms accounted for about 67 per cent of market value and had outperformed the broader market over the past five years.

He added that the results confirm that sustainability practices are linked to profitability and stronger market returns.

The research head also noted gaps in gender representation and governance structures across companies, stressing that more progress is needed to improve inclusiveness.

He said the report is intended to serve as a benchmark to encourage companies to improve disclosures and adopt stronger sustainability practices.

The PUNCH earlier reported that Nigeria’s capital market regulators and professional accountants called for stronger transparency, governance, and sustainability disclosure by listed companies, as pressure mounts on firms to align corporate reporting with global standards beyond traditional financial statements.

Nigeria’s equities market lost N1.347tn in value as investors exited bellwether stocks, triggering a broad sell-off across key sectors. The decline reflects renewed profit-taking and risk-off sentiment, with heavyweight counters driving the downturn and weighing on overall market capitalisation.

Specifically, the All-Share Index declined by 2,098.31 points, representing a loss of 0.86 per cent to close at 241,750.15 points. Similarly, market capitalisation dipped by N1.347tn to close at N155.152tn.

The downturn was driven by price depreciation in large- and medium-capitalised stocks, including Aradel Holdings, MTN Nigeria Communications, Guinness Nigeria, Beta Glass, and Lafarge Africa. Looking ahead, Cowry Assets Management Limited noted that the market is expected to trade cautiously, driven by continued investor positioning.

Despite the downturn, market breadth remained positive, with 45 gainers outpacing 26 decliners. R.T. Briscoe Nigeria emerged as the top gainer, rising 10 per cent to close at N2.09 per share.

McNichols, Vitafoam Nigeria, and Zichis Agro Allied Industries followed with gains of 10 per cent each, closing at N7.92, N170.50, and N25.08, respectively.

Chemical and Allied Products appreciated 9.99 per cent to close at N175.65, while Dangote Sugar Refinery advanced 9.98 per cent to close at N84.30 per share.

On the laggards’ side, Guinness Nigeria led the losers’ chart, dropping 10 per cent to close at N447.30. Union Dicon Salt followed with a 9.82 per cent decline to close at N19.75, while AIICO Insurance fell 9.28 per cent to close at N4.30. Wema Bank lost 8.72 per cent to close at N30.35, and MTNN depreciated 8.63 per cent to close at N836.00.

Meanwhile, the total volume of trades rose 31.09 per cent to 1.268 billion units, valued at N75.226bn across 102,665 deals. FCMB Group led activity with 160.591 million shares worth N1.770bn. Guaranty Trust Holding Company followed with 94.095 million shares valued at N13.091bn, while Access Holdings traded 81.771 million shares valued at N2.072bn. Zenith Bank and Fidelity Bank also recorded significant activity, trading shares worth N8.073bn and N911.829m, respectively.

Fuel marketers have thrown their weight behind the Nigerian National Petroleum Company Limited’s plan to revive the Port Harcourt and Warri refineries through a partnership with two Chinese firms, saying the move could unlock idle investments in the dormant assets.

The NNPC on Monday signed a Memorandum of Understanding with Sanjiang Chemical Company Limited and Xingcheng (Fuzhou) Industrial Park Operation and Management Co., Ltd. to drive the rehabilitation, restart, and expansion of the Port Harcourt and Warri refineries through a technical equity partnership model.

Speaking in an interview with our correspondent, the Executive Secretary of the Major Energies Marketers Association of Nigeria, Clement Isong, said bringing in technically competent partners with equity stakes would ensure efficiency and sustainability.

According to him, a lot of money had been invested in the refinery in the past with no returns, saying the new deal would unlock the tied-down capital.

“Let me be clear. We already own the assets. And in owning the assets, they have already worked for many years for the country. Now, for a while, the assets have not been producing. They have analysed many ways of getting it to produce sustainably.

“Remember that a lot of money has already been spent on the turnaround maintenance of the assets. Remember that the asset has to be upgraded for it to produce products that meet today’s specs. So, any investment by a competent party that would bring output from the previously invested capital can only be positive because the previous investments in the assets are tied-down capital that are not yielding any output.

“So, bringing a technically competent third party that will not only complete the investment but will also operate those assets efficiently and sustainably can only be good for the country,” Isong said.

On the structure of the deal, Isong stressed that the key difference is that the Chinese partners are taking equity in the assets as part owners and would want the refinery to work so they can get returns on their investments.

He described the model as innovative, adding that every Nigerian would be happy if the facilities worked again. He said the NNPC did not have the internal competence and capacity to run the refineries without a technical partner.

Despite criticisms from some stakeholders, including the billionaire businessman Aliko Dangote and former President Olusegun Obasanjo, that the plants may not work again, Isong maintained that the approach could be a pleasant surprise.

“This is an innovative way of getting the assets to work, like I say, in an efficient and sustainable way. The challenge we knew was that NNPC did not have the internal competence or capacity to run those refineries efficiently. Now, they have brought a third party, and the key difference is that the third party they have brought is taking equity. He’s a part-owner of the refinery and so would want the refinery to work so he can get returns on his investment.

“I think it’s a very interesting approach. And even for those people who said that it will never work again, I’m sure if it works again, their surprise will be very pleasant. They will be happy. I think every Nigerian will be happy if those assets begin to work and contribute to the national productivity. So, I think it can only be a good thing,” he said.

Similarly, the Petroleum Products Retail Outlets Owners Association of Nigeria described the agreement as a major shift in Nigeria’s refining strategy.

The group commended President Bola Tinubu and the leadership of the NNPC Group Chief Executive Officer, Bayo Ojulari, for pursuing what it called a bold reform.

PETROAN National President, Billy Gillis-Harry, said the agreement was “a timely and strategic intervention that signals a new direction for Nigeria’s refining sector.” He emphasised that the technical equity model would fix longstanding operational failures.

“The introduction of a technical equity partnership model would bring much-needed operational discipline, efficiency, and accountability that had been lacking in previous refinery rehabilitation efforts,” he said.

Gillis-Harry added that the initiative marks “a decisive shift from past approaches that yielded limited results to a more performance-driven model that ensures long-term sustainability”.

The PETROAN boss stated that the project would create thousands of direct and indirect jobs across engineering, logistics, retail, and support services while also reducing unemployment.

He added that increased domestic refining would reduce fuel importation, conserve foreign exchange, stabilise the naira, and stimulate growth across multiple sectors of the economy.

According to him, the integration of refining with petrochemical and gas hubs would enhance value creation and align Nigeria with global best practices. PETROAN also said the initiative would boost government revenues through taxes and exports while improving infrastructure and livelihoods in host communities in Rivers and Delta states.

The association president further linked the deal to potential relief for consumers. He said increased refining capacity and competition would create a pathway for more competitive fuel pricing, which is expected to “ultimately lead to lower fuel costs and improved affordability for citizens”.