Lagos: The Bank of Industry (BoI) and financial experts have called on Micro, Small and Medium Enterprises (MSMEs) to integrate Environmental, Social, and Governance (ESG) principles into their operations to foster growth and enhance global competitiveness. They shared this guidance at the BOI inaugural ESG Conference and the launch of the ESG Adoption by Nigerian MSMEs report.

According to News Agency of Nigeria, the conference, themed ‘Advancing Resilient and Responsible Enterprises: ESG as a Strategic Imperative for Nigerian SMEs,’ highlighted the global economy’s shift towards rewarding responsibility, transparency, and sustainability. Dr. Olasupo Olusi, Managing Director of BOI, emphasized the need for Nigerian businesses, particularly MSMEs, to adapt and thrive in this evolving landscape, given their significant contribution to the national economy.

Olusi pointed out that MSMEs constitute over 90 percent of Nigerian businesses, contribute nearly half of the Gross Domestic Product (GDP), and employ millions. However, many face challenges in comprehending and implementing ESG principles to become more competitive and future-ready. The conference aimed to bridge this knowledge gap by offering a practical platform for various stakeholders to exchange insights and develop solutions.

Olusi further noted that the Bank of Industry, Nigeria’s leading Development Finance Institution, plays a crucial role in finance and development beyond mere lending. Recent years have shown positive momentum among MSMEs, with more enterprises exploring renewable energy solutions, reducing waste, and improving labor and governance practices. Despite this progress, significant opportunities remain to scale up ESG adoption.

Mrs. Tenioye Majekodunmi, Director-General of the National Council on Climate Change, highlighted the urgency and timeliness of ESG pathways for Nigerian SMEs. She described the current period as a defining moment where environmental responsibility, social inclusion, and good governance are strategic imperatives rather than optional ideals.

Majekodunmi warned that the transition to a low-carbon future presents both risks and opportunities for Nigerian MSMEs, which account for over 80 percent of employment and nearly 50 percent of GDP. She commended the Bank of Industry for its leadership in promoting sustainability through its newly launched Sustainability Finance Framework, encouraging MSMEs to adopt sustainable practices to become preferred partners in global trade and finance.

Mr. Mahamadou Diarra, Deputy Country Director of Agence Francaise de Developpement Nigeria (AFD), praised BOI for its commitment to advancing ESG practices. Diarra assured that AFD would continue offering technical guidance and assistance to partner institutions to enhance their environmental and social management systems.