ARTICLE
17 November 2025

How ESG Trends Nigeria Influence Foreign Direct Investment Decisions

NC
Novatia Consulting

Contributor

We serve the private-sector, the public sector, the world’s top companies, countless new ventures, and dozens of governments and Non-governmental organizations – spanning all industries, functions and problems which makes for inspiring innovation.

Our unique combination of practical experience and subject matter expertise enables us to provide innovative management consulting solutions that create a positive and lasting impact on overall strategy, reputation, and growth.

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
Novatia Consulting are most popular:
  • with readers working within the Business & Consumer Services industries

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.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More