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17 November 2025

How ESG Trends Nigeria Influence Foreign Direct Investment Decisions

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Novatia Consulting

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ESG trends Nigeria significantly impacts foreign direct investment flows, with international investors increasingly prioritizing environmental and governance factors in their investment decisions.
Nigeria Government, Public Sector
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ESG trends Nigeria significantly impacts foreign direct investment flows, with international investors increasingly prioritizing environmental and governance factors in their investment decisions.

Multinational corporations now require Nigerian partners to meet specific ESG standards. These requirements often exceed local regulatory minimums and drive adoption of international best practices across various sectors.

Development finance institutions condition their investments on meeting ESG criteria. Projects must demonstrate positive environmental and social impacts while maintaining strong governance practices to qualify for concessional financing.

Pension funds and institutional investors from developed markets are major sources of capital for Nigerian projects. These investors typically have mandates requiring ESG compliance, making sustainability practices essential for accessing international capital.

Export credit agencies provide financing guarantees based partly on ESG performance. Companies seeking to export to developed markets must demonstrate sustainability credentials to qualify for export financing support.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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