LEGAL FRAMEWORK FOR IMPLEMENTATION OF ENVIRONMENTAL, SOCIAL AND GOVERNANCE STANDARDS IN NIGERIA

Abstract

ABSTRACT 
Environmental, Social and Governance (ESG) has emerged as a buzzword in the 21st century and 
has been used to refer to issues of environmental, social and governance concerns that should be 
integrated into national decision-making by countries, especially in their dealings with foreign 
businesses. ESG standards are now globally required to be upheld by States and they are often 
stipulated in laws. Relying on the doctrinal research method, the paper examines the legal 
framework for the implementation of ESG standards in Nigeria. The paper finds that although 
Nigeria has not enacted any specific ESG-focused legislation, there are quite a few laws that 
have been enacted to address the critical aspects of ESG in Nigeria. The paper finds further that 
the extant laws in Nigeria contain provisions on ESG standards which, if implemented, will go a 
long way to addressing ESG concerns, resulting in improved environmental and human rights 
consciousness among companies operating in Nigeria. The paper finds that despite what would 
seem to be an avalanche of laws at the federal level of governance in Nigeria, the provisions of 
some of the key pieces of legislation leave too much gap that are exploited by both the Nigerian 
authorities and the investors attracted into the Nigerian investment ecosystem, to defeat the 
implementation of ESG standards in the country. The paper recommends a total overhaul of the 
laws in order to bring them in line with global ESG standards