…as Nigerian Banks Hit Rock Bottom with shocking 1.7/10 score in landmark sustainability audit
By Nkechi Eze
PNigeria’s banking sector has come under sharp scrutiny following the unveiling of the country’s first comprehensive policy assessment report on sustainability and responsible finance, which exposed significant gaps in environmental, social and governance (ESG) compliance among leading financial institutions.
Speaking at the launch held at the Shehu Musa Yar’Adua Centre on Thursday, Executive Director of the Civil Society Legislative Advocacy Centre (CISLAC), Comrade Auwal Ibrahim Musa Rafsanjani, described the findings as both “revealing and concerning,” noting that four major Nigerian banks assessed recorded a dismal average score of 1.7 out of 10.
The report, titled “How Four Banks in Nigeria Are Responding to Global ESG Compliance Standards,” evaluated Access Bank, Standard Chartered Bank, United Bank for Africa, and Zenith Bank against more than 400 international ESG benchmarks.
Rafsanjani stated that while some banks meet basic regulatory requirements, sustainability considerations remain largely absent from core financing decisions. He emphasized that compliance in Nigeria has yet to translate into genuine institutional commitment.
He highlighted that all four banks scored zero on tax transparency, with no clear disclosures on country-by-country reporting or exposure to tax havens, a development he said undermines global accountability standards and efforts to curb illicit financial flows. On climate action, the banks recorded an average score of 0.9, reflecting continued financing of high-emission sectors without credible transition frameworks.
The CISLAC Executive Director further expressed concern over weak commitments to human rights, biodiversity protection, and host community safeguards, warning that profit-driven decisions are often made without sufficient regard for environmental and social consequences.
According to him, although there are modest improvements in internal policies such as labour standards, gender equality, and anti-corruption measures, these gains are overshadowed by deficiencies in how banks finance external activities, where their impact is most significant.
Rafsanjani noted that the Nigerian Sustainability Banking Principles introduced in 2012 are now outdated and inadequate, fostering what he described as a “tick-box compliance culture” rather than meaningful accountability. He called for urgent reforms, urging 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 modernize the country’s ESG framework.
He stressed that any review process must produce updated sustainability principles aligned with global best practices, ensuring measurable impact, transparency, and accountability across the financial system. He also urged banks to move beyond minimum compliance and embrace genuine corporate responsibility, warning that institutions that fail to adapt risk long-term instability.
Rafsanjani clarified that the report is not intended as an attack on the banking sector but as a constructive benchmark for improvement and leadership, adding that Nigeria has the potential to lead sustainable finance efforts across Africa if stakeholders demonstrate the required commitment.
In his remarks, Programme Manager for Accountable Governance at Oxfam, Henry Ushie, reinforced the report’s intent as a reform tool rather than a punitive instrument. He stressed the strategic importance of banks within the financial system and the need for their operations to align with sustainability principles that attract responsible investment and protect the rights of stakeholders.
Ushie underscored the relevance of global frameworks referenced in the assessment, noting that adherence to such standards would significantly strengthen Nigeria’s financial credibility and investment climate. He also drew attention to everyday operational practices within the banking sector, including customer service conditions and workplace standards, arguing that sustainability must extend beyond policy documents to real-world experiences.
He reiterated concerns over the zero scores recorded on tax transparency, warning that lack of disclosure raises questions about accountability and potential links to illicit financial practices. He urged banks to critically review the report, align their operations with both domestic regulations and international standards, and conduct internal assessments to improve their performance.
Also speaking, Special Adviser to the Chairman of the Economic and Financial Crimes Commission (EFCC) on Regulatory Compliance, Francis Useni, acknowledged the significance of the report but called for broader data sources in future assessments. He noted that reliance on publicly available information may limit the depth of analysis and recommended incorporating additional intelligence channels for more robust evaluations.
Useni described the report as a valuable resource for regulatory and investigative purposes, particularly in identifying gaps that could aid financial oversight and enforcement efforts. He emphasized the need for stronger collaboration between financial institutions and regulators to enhance compliance and address emerging risks within the sector.
The event concluded with a call for sustained dialogue among regulators, financial institutions, and civil society actors, as stakeholders collectively seek to reposition Nigeria’s banking sector toward sustainability, transparency, and inclusive economic growth.
