The Securities and Exchange Commission (SEC) has said it will take decisive action against listed companies that operate without verifiable sustainability disclosures.

It also charges listed companies on credible disclosures if they hope to access long-term capital.

The Director General of SEC, Dr Emomotimi Agama stated this yesterday in Abuja at the official launch of the first Nigerian Corporate Sustainability Report (NCSR) produced by Norrenberger Research.

He said the fact that a meaningful number of listed companies still lack coherent sustainability disclosures, or provide disclosures that are neither structured nor verifiable, is a challenge SEC must confront.

“Let me speak plainly about what is at stake. Nigeria’s capital market currently boasts a market capitalisation approaching N130 trillion. Our Asset Under Management has 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”, he said, adding that SEC will be responding to the findings in the report 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 said.

The SEC boss 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, are no longer treating 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.

While commending Noreenberger for assembling what he described as one of the most comprehensive assessments of corporate sustainability disclosures among Nigerian-listed companies, he said the company has rendered a service not merely 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 said.

The SEC DG said under the Investments and Securities Act 2025, which now governs the operations of the capital markets with greater scope and sophistication, SEC Nigeria has been empowered to champion frameworks that align the Nigerian markets with global best practices. “Sustainability disclosure is firmly within that mandate”, he said adding,

Earlier in his speech the Minister of State Industry, Trade and Investment, Senator John Eno, said one of the major challenges confronting emerging markets, including Nigeria, is the persistent data gap around sustainability and performance on environmental, social and governance (ESG).

He said reliable, transparent, and standardised sustainability data remains essential for informed policymaking, investment decisions, risk assessment, and long-term economic planning.
The Minister said the Nigerian Corporate Sustainability Report represents a significant contribution towards 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, adding that there is an urgent need for stronger public-private partnerships that bring together government institutions, financial institutions, research organizations, development partners, and the corporate sector to collectively address national development challenges.

“I also commend Norrenberger for going beyond research to developing financial products and innovative investment solutions aimed at improving financial inclusion and mobilizing capital towards productive sectors of the economy”, he said.

“As we work towards 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 the company, Tony Edeh said the Nigerian Corporate Sustainability Report (NCSR) is coming at a time when the global business environment is undergoing a profound shift where organisations are no longer assessed on financial performance, but also on how they manage environmental impact, social responsibility, and governance standards.

He said sustainability is 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”, he said.

Highlights of the report shows that out of the 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 according to the report also collectively represent 67 per cent of the total market capitalization of the Nigerian Exchange, underscoring the significant weight of sustainability leaders within the overall market.