By Felix Khanoba
Nigeria’s leading commercial banks have recorded a poor showing in a global Environmental, Social, and Governance (ESG) assessment, scoring an average of just 1.7 out of 10, as the Fair Finance Nigeria (FFNG) Coalition raises alarm over what it describes as outdated sustainability practices and weak regulatory compliance.
The coalition, comprising BudgIT, Policy Alert, CISLAC, CODE, STEPS, and Oxfam, disclosed this on Thursday in Abuja during a press briefing where it presented findings from Nigeria’s first comprehensive ESG policy assessment of major financial institutions.
The evaluation covered Access Bank, Standard Chartered, United Bank for Africa (UBA), and Zenith Bank, measuring their performance against more than 400 international sustainability benchmarks.
Speaking through a statement read by Auwal Musa Rafsanjani, Executive Director of Civil Society Legislative Advocacy Centre (CISLAC), the coalition said the findings reveal a banking sector exposed to significant environmental and social risks, but lacking transparency and accountability.
“The overall average performance across the assessed banks sits at a critically low 1.7 out of 10.
“While the assessment notes relatively better performance in internal operational policies, particularly concerning labour rights, gender equality, and anti-corruption, their external financing commitments to protect host communities, the climate, and national revenue remain virtually non-existent.”
The report identified major gaps across critical areas, particularly tax transparency, climate action, and corporate responsibility.
On tax practices, the coalition noted that all four banks scored zero, citing a lack of disclosure around country-by-country revenues and financing of companies operating in tax havens.
“A Zero on Tax Transparency: All four banks scored an average of 0.0 in the Tax assessment. By refusing to publicly provide country-by-country reporting of revenues and failing to disclose if they finance companies operating in tax havens or zero-corporate-tax areas, these institutions operate in the shadows. This severe level of opacity undermines the core principles of Anti-Money Laundering (AML) frameworks and the Financial Action Task Force (FATF) guidelines, ignoring global standards designed to prevent the siphoning of vital public resources from developing nations,” the coalition said.
The coalition also flagged weak climate commitments, with banks averaging just 0.9 out of 10, despite Nigeria’s vulnerability to climate change.
“The Climate Gap: Despite Nigeria’s extreme vulnerability to climate change, the banks averaged a shocking 0.9 out of 10 on Climate action. The report reveals that banks continue to heavily finance high-emission sectors like oil and gas without publishing credible, portfolio-level transition strategies or requiring client-level emissions reductions,” it stated.
It further criticised the lack of safeguards for human rights and biodiversity in financing decisions.
“Profiting Without Protection: The assessment shows that these banks provide zero or weak commitments to safeguarding human rights, and biodiversity within their wider investment portfolios and corporate supply chains.”
Reacting to the findings, Country Director of Oxfam Nigeria, Tijani Hamza Ahmed, warned that the banking sector must take responsibility for its broader impact.
“Nigerian banks have massive influence; their choices can either accelerate inequality and environmental harm or drive a just and sustainable future. Right now, they are failing that test,” he said.
“Scoring a 0.0 on tax transparency and a 0.9 on climate change is unacceptable. These institutions are reaping massive profits from high-impact sectors while refusing to be held accountable for the social and environmental footprints of their decisions. This is not just a disclosure gap; it is a failure of leadership in the financial sector.”
Among the banks assessed, Standard Chartered recorded the highest score at 2.7, largely attributed to policies from its global headquarters, although the coalition questioned the local applicability of such standards in Nigeria.
The group also criticised the 2012 Nigerian Sustainability Banking Principles (NSBP), describing them as obsolete and inadequate for current realities.
It called on the Central Bank of Nigeria (CBN), the Chartered Institute of Bankers of Nigeria (CIBN), the Bank Directors Association of Nigeria (BDAN), relevant National Assembly committees, and bank executives to convene a multi-stakeholder roundtable aimed at overhauling ESG regulations and aligning them with global standards.
The coalition further urged financial institutions to move beyond “tick-box” compliance and embrace genuine accountability in corporate financing.
The assessment, according to the organisers, reviewed publicly available policies of the four banks and scored them on a scale of 0 to 10 across various themes, with 1.0 indicating full commitment and 0.0 representing no evidence of compliance.
