The Executive Director of Civil Society Legislative Advocacy Centre (CISLAC), Auwal Ibrahim Musa Rafsanjani, has raised concerns over weak sustainability and responsible finance practices in Nigeria’s banking sector, following the launch of a new policy assessment report in Abuja.
The report, unveiled on Thursday at the Shehu Musa Yar’Adua Centre, assessed four major banks—Access Bank, Standard Chartered Bank, United Bank for Africa, and Zenith Bank—against over 400 global environmental, social, and governance (ESG) indicators.
The event and findings were contained in a statement and speech delivered by Rafsanjani at the launch of Nigeria’s first comprehensive policy assessment report on sustainability and responsible finance in the banking sector.
According to him, the report, titled “How Four Banks in Nigeria Are Responding to Global ESG Compliance Standards,” revealed that the banks recorded an average score of just 1.7 out of 10.
“The findings are both revealing and concerning. While basic regulatory requirements may be met, sustainability is not yet embedded in core financing decisions,” Rafsanjani said.
He noted that Nigeria’s banking sector remains largely compliant on paper but lacks genuine commitment to sustainability principles.
Highlighting key findings, he disclosed that all four banks scored zero on tax transparency, with no clear disclosures on country-by-country reporting or exposure to tax havens.
“This undermines global standards and efforts to curb illicit financial flows,” he said.
On climate action, Rafsanjani said the average score stood at 0.9, warning that banks continue to finance high-emission sectors without credible transition plans despite Nigeria’s vulnerability to climate change.
He further raised concerns over weak commitments to human rights, biodiversity, and host community protection, suggesting that profit motives often override social and environmental considerations.
The CISLAC boss, however, acknowledged modest improvements in internal policies such as labour standards, gender equality, and anti-corruption measures, but said these gains are overshadowed by gaps in external financing practices.
He described the situation as a systemic failure, noting that the Nigerian Sustainability Banking Principles introduced in 2012 have become outdated.
“They enable a culture of tick-box compliance rather than meaningful accountability. This must change,” he said.
Rafsanjani called on the Central Bank of Nigeria, Chartered Institute of Bankers of Nigeria, Bank Directors Association of Nigeria, and relevant National Assembly committees to convene a multi-stakeholder roundtable to review and modernise Nigeria’s ESG framework.
He urged banks to move beyond regulatory compliance and embrace genuine corporate responsibility.
“The future of finance is sustainable, and institutions that fail to adapt risk long-term instability,” he said.
Also speaking, Programme Manager, Accountable Governance at Oxfam, Henry Ushie, said the report was not intended to victimise any bank but to strengthen the sector.
“One of the major objectives is not to victimise any bank, but to examine their operations due to their strategic importance in the financial system,” he said.