Key points
- NECA has launched Nigeria’s first Environmental, Social and Governance (ESG) Implementation Guide for MSMEs.
- The guide aims to help small businesses adopt sustainable business practices and improve competitiveness.
- NECA says ESG reporting is expected to become mandatory in Nigeria by 2030.
- The association plans to train MSMEs nationwide on ESG implementation after completing specialised capacity-building programmes.
Main story
The Nigeria Employers’ Consultative Association (NECA) has launched Nigeria’s first Environmental, Social and Governance (ESG) Implementation Guide for Micro, Small and Medium Enterprises (MSMEs) to strengthen business sustainability and improve the competitiveness of small businesses.
The guide was unveiled at the 2026 Nigeria Employers’ Summit in Abuja in collaboration with the International Labour Organisation (ILO).
Chairman of the NECA ESG Advisory Board, Mr Femi Jaiyeola, described the guide as a major milestone in helping Nigerian MSMEs compete in an increasingly sustainability-focused global economy.
He said MSMEs remain the backbone of Nigeria’s economy and require practical tools to meet the growing demand for responsible business practices from regulators, investors and international markets.
According to him, ESG has evolved beyond regulatory compliance into a strategic business framework that helps companies attract investment, improve competitiveness and build long-term enterprise value.
Jaiyeola noted that regulators, financial institutions and global markets are increasingly requiring businesses of all sizes to adopt sustainable business practices.
He disclosed that ESG reporting is expected to become mandatory in Nigeria by 2030 and urged MSMEs to begin preparing ahead of the transition.
According to him, the implementation guide provides a practical roadmap that enables businesses to adopt ESG principles gradually while improving resilience and creating measurable business value.
He said businesses that embrace ESG are likely to improve access to finance, strengthen their reputation and increase opportunities to participate in international value chains.
Jaiyeola described the guide as a practical resource that would help Nigerian MSMEs compete, grow and thrive in a sustainability-driven economy.
He commended the International Labour Organisation consultants and members of the NECA ESG Advisory Board for supporting the development of the guide.
The NECA official recalled that the association, with support from the ILO, launched an ESG assessment in December 2025 to strengthen sustainability practices across Nigerian businesses.
He said the assessment highlighted the need to integrate MSMEs into Nigeria’s ESG framework because of their significant contributions to employment and economic growth.
According to Jaiyeola, the implementation guide is the first developed specifically for MSMEs in Nigeria and, to NECA’s knowledge, across Africa.
He expressed confidence that the document would improve understanding of ESG principles and enhance the competitiveness of Nigerian businesses in domestic and international markets.
Jaiyeola also disclosed that six NECA officials are currently undergoing specialised ESG training for SMEs at the ILO International Training Centre in Turin, Italy.
He said the officials would, upon completion of the programme, train MSMEs across Nigeria’s six geopolitical zones as part of efforts to build nationwide capacity in sustainable business practices.
The issues
Environmental, Social and Governance (ESG) standards are becoming increasingly important as investors, lenders and regulators place greater emphasis on sustainable business practices. For MSMEs, early adoption of ESG principles could improve access to finance, strengthen competitiveness and prepare businesses for future regulatory requirements.
What’s being said
“ESG has evolved beyond regulatory compliance into a strategic business tool for attracting investment, improving competitiveness and enhancing long-term enterprise value.” — Femi Jaiyeola, Chairman, NECA ESG Advisory Board
“The guide provided a practical roadmap to help MSMEs adopt ESG principles progressively while delivering measurable business value and organisational resilience.” — Femi Jaiyeola
What’s next
NECA plans to roll out ESG training for MSMEs across Nigeria after its officials complete specialised capacity-building programmes, while encouraging businesses to begin preparing for expected mandatory ESG reporting by 2030.
Bottom line
By launching Nigeria’s first ESG implementation guide for MSMEs, NECA is seeking to prepare small businesses for emerging sustainability standards while improving their access to investment, markets and long-term growth opportunities.
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