Nigeria’s commercial banks have come under criticism after recording an average score of 1.7 out of 10 in a global sustainability assessment measuring Environmental, Social and Governance standards.
The rating was disclosed by the Fair Finance Nigeria Coalition, which said the result reflected weak performance by the banking sector in responsible finance and corporate accountability.
The coalition, made up of BudgIT, Policy Alert, CISLAC, CODE, STEPS and Oxfam, conducted a policy review of selected banks using more than 400 international indicators contained in the 2025 Fair Finance Guide International methodology.
Addressing journalists on behalf of the coalition, Executive Director of the Civil Society Legislative Advocacy Centre, Auwal Rafsanjani, said the banks showed modest strengths in internal labour rights policies, gender equality measures and anti-corruption frameworks.
He said, however, that they performed poorly in external commitments relating to communities, climate protection and national revenue accountability.
Among the most significant gaps identified was a zero score on tax transparency, with no country-by-country revenue reporting or disclosure on financing linked to tax havens, contrary to global Anti-Money Laundering and Financial Action Task Force standards.
The report also placed climate action at an average of 0.9 out of 10, alleging that banks continue to finance high-emission oil and gas activities without clear transition plans or measurable targets for reducing client emissions.
It added that human rights and biodiversity safeguards in investment portfolios and supply chains were either absent or weak.
One bank emerged highest in the ranking with a score of 2.7 out of 10, a performance the coalition attributed largely to policies inherited from its global parent institution, though it said implementation at the local level remained unclear.
“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,” said Hamza Ahmed Tijani, Country Director of Oxfam in Nigeria.
“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.”
Environmental, Social and Governance standards are increasingly used worldwide to assess how financial institutions manage climate risk, labour practices, transparency and long-term sustainability.
The coalition blamed the continued reliance on the 2012 Nigerian Sustainable Banking Principles, saying the framework encourages box-ticking compliance rather than measurable accountability.
It called on the Central Bank of Nigeria, Chartered Institute of Bankers of Nigeria, Bank Directors Association of Nigeria, National Assembly banking committees and bank executives to convene a multi-stakeholder roundtable to modernise ESG rules in line with international benchmarks.
