Yemisi Izuora
Following a report that showed some Nigerian banks failed to achieve pass mark in global Environmental, Social and Governance (ESG) standards, coalition of Non- Governmental Organizations (NGOs) has called for urgent reforms to strengthen transparency and accountability in Nigeria’s financial system.
The Non State Actors operating under the Fair Finance Nigeria Coalition, said the call follows a new assessment, which found that four leading Nigerian banks scored an average of 1.7 out of 10 in global Environmental, Social and Governance (ESG) standards.
The report, presented in Abuja during a media briefing, evaluated Access Bank, Standard Chartered, United Bank for Africa, and Zenith Bank across more than 400 international sustainability criteria.
According to the findings, all four banks recorded zero scores in tax transparency, with no public disclosure of country-by-country revenues or links to companies operating in tax havens.
On climate action, the banks scored an average of 0.9 out of 10, as the report highlighted continued financing of high-emission sectors such as oil and gas without clear transition strategies.
The assessment also identified weak commitments to protecting human rights, biodiversity, and host communities affected by financed projects.
Executive Director of the Civil Society Legislative Advocacy Centre, Auwal Rafsanjani, said the findings revealed significant gaps requiring urgent action by both government and financial institutions.
He expressed concern over the zero scores in tax transparency, warning that such opacity could enable illicit financial flows, money laundering, and the loss of public revenue needed for national development.
Rafsanjani added that despite Nigeria’s vulnerability to climate change, the banks showed weak commitment to climate action, continuing to finance high-emission sectors without clear transition strategies.
He emphasised that the report is not intended to attack financial institutions but to encourage compliance with global best practices and improve the integrity of the banking sector.
Also speaking, a representative of Oxfam in Nigeria, Henry Ushie, said the initiative aims to promote a more sustainable and accountable financial system.
He explained that the assessment is based on international frameworks, including the United Nations Guiding Principles on Business and Human Rights, which require institutions to respect human rights across their operations and value chains.
According to him, banks must go beyond internal policies and ensure that their services, investments, and customer relations reflect global standards of fairness and sustainability.
He also raised concerns about customer treatment, staff welfare, and environmental practices, urging banks to adopt measures that reduce their carbon footprint and improve service delivery.
On taxation, he noted that all assessed banks scored zero, indicating a lack of transparency in reporting and raising concerns about possible tax evasion and capital flight.
The coalition called on the Central Bank of Nigeria, the Chartered Institute of Bankers of Nigeria, and other stakeholders to review existing regulations and align them with global standards.
It also urged financial institutions to conduct self-assessments and take immediate steps to address identified gaps.
The coalition stressed that strengthening the financial sector is critical to attracting investment, preventing corruption, and ensuring sustainable economic development.
The Fair Finance Nigeria Coalition comprises organisations including BudgIT, CISLAC, Connected Development, Policy Alert, STEPS, and Oxfam in Nigeria, with support from the Swedish International Development Cooperation Agency.