SEC to Sanction Companies Without Sustainability Disclosures
The Securities and Exchange Commission (SEC) has announced that it will take decisive action against listed companies that fail to provide verifiable sustainability disclosures. The regulator also urged companies to ensure credible disclosures to access long-term capital.
Dr. Emomotimi Agama, the Director General of SEC, made this statement on Tuesday in Abuja during the launch of the first Nigerian Corporate Sustainability Report (NCSR) produced by Norrenberger Research. He highlighted that a significant number of listed companies still lack coherent sustainability disclosures or provide information that is neither structured nor verifiable, a challenge the SEC must address.
“Let me speak plainly about what is at stake. Nigeria’s capital market currently boasts a market capitalisation approaching N130 trillion. Our Assets Under Management have crossed N8 trillion. These are numbers that reflect growing depth and dynamism. But they also underscore the weight of responsibility that rests on all of us in this ecosystem,” Agama said.
He added that the SEC will respond to the report’s findings with the seriousness they deserve. “We intend to strengthen our guidance on sustainability reporting, deepen engagement with listed companies on disclosure obligations, and create regulatory incentives for early adopters of robust sustainability frameworks. We will not wait for the market to drift toward best practice. We will lead,” he stated.
Agama noted that institutional investors controlling trillions of dollars in assets under management—from sovereign wealth funds in Norway and Singapore to pension funds across North America and Europe—no longer treat environmental, social, and governance (ESG) considerations as secondary filters. “They are primary determinants of capital allocation decisions. Nigeria’s companies that wish to access this vast pool of patient, long-term capital must understand one unambiguous reality: the price of entry is disclosure. Credible, consistent, comparable, and verifiable disclosure,” he said.
Commending Norrenberger for producing what he described as one of the most comprehensive assessments of corporate sustainability disclosures among Nigerian-listed companies, Agama said the firm has rendered a service not only to the investment community but to the nation. “Transparency is not a concession. It is the foundation upon which lasting investment confidence is built,” he added.
The SEC DG explained that under the Investments and Securities Act 2025, which now governs the capital markets with greater scope and sophistication, SEC Nigeria has been empowered to champion frameworks that align Nigerian markets with global best practices. “Sustainability disclosure is firmly within that mandate,” he said.
Earlier, the Minister of State for Industry, Trade and Investment, Senator John Eno, stated that one of the major challenges confronting emerging markets, including Nigeria, is the persistent data gap around sustainability and performance on ESG issues. He emphasized that reliable, transparent, and standardised sustainability data remains essential for informed policymaking, investment decisions, risk assessment, and long-term economic planning.
The Minister said the NCSR is a significant contribution toward bridging this gap by providing credible insights into the ESG practices of Nigerian companies. “As a government, we recognize that achieving sustainable economic growth, industrial transformation, climate resilience, and inclusive development cannot be accomplished by the public sector alone,” he said, calling for stronger public-private partnerships involving government institutions, financial institutions, research organizations, development partners, and the corporate sector.
“I also commend Norrenberger for going beyond research to developing financial products and innovative investment solutions aimed at improving financial inclusion and mobilizing capital toward productive sectors of the economy,” the Minister added. “As we work toward building a more inclusive and resilient economy, such initiatives are essential in expanding access to finance, deepening participation in the financial system, and creating pathways for sustainable wealth creation for Nigerians.”
The Group Managing Director of Norrenberger, Tony Edeh, said the NCSR comes at a time when the global business environment is undergoing a profound shift, with organisations now assessed not only on financial performance but also on how they manage environmental impact, social responsibility, and governance standards. He described sustainability as not just a responsibility but a strategic, financial, and reputational imperative.
“The NCSR reflects this reality. It is designed not just to inform but to challenge organisations to move from intention to measurable performance and from disclosures to genuine integration,” Edeh said.
Highlights of the report show that out of 146 listed companies on the Nigerian Exchange, only 21 achieved scores of 72 points and above on the Nigerian Corporate Sustainability Index (NCSI). These companies collectively represent 67 percent of the total market capitalisation of the Nigerian Exchange, underscoring the significant weight of sustainability leaders within the overall market.
