Sustainable Finance Bill

A Bill mandates the integration of environmental, social, and governance criteria into Nigeria's financial system. It targets banks and financial institutions to promote sustainable investment practices.

Sustainable Finance Bill Policy Overview

What Is This Policy?

A bill to mainstream environmental, social, and governance (ESG) criteria into Nigeria's financial system, mandating climate-risk disclosure, green financing instruments, and sustainable investment practices across the banking, capital market, and insurance sectors.

Who Does It Target?

Banks, insurance companies, and pension fund administrators Capital market operators and listed companies SEC, CBN, NAICOM, and PenCom as financial regulators Green and sustainable investment project developers

What Does It Aim to Achieve?

Mobilise private finance for Nigeria's climate transition and green economy Require climate-risk disclosure across the financial sector Develop a robust green bond and sustainability-linked loan market Align Nigeria's financial system with the Paris Agreement and net-zero transition

Key Features

Current Status

Funding: Regulatory framework; public sector green bonds; multilateral climate finance including Green Climate Fund

How to Access

Financial institutions and companies comply with ESG disclosure requirements; green project developers apply for green bond listing. Requirements: Mandatory for all regulated financial institutions and publicly listed companies Green bond issuers must obtain second-party opinion from accredited reviewer ESG reports must follow TCFD or equivalent international standard Application method: SEC green bond registration: www.sec.gov.ng | CBN sustainable finance guidelines: www.cbn.gov.ng

Important Terms

Greenwashing — making false sustainability claims — is a regulatory violation with significant penalties Climate-risk disclosure non-compliance attracts regulatory sanction from SEC or CBN ESG data submitted to regulators must be independently verified

Impact & Metrics

Nigeria needs $750 billion in climate finance by 2050; a robust sustainable finance framework could unlock $10–15 billion in annual private green investment by 2030.

Official Resources

Website: www.sec.gov.ng | www.cbn.gov.ng | www.environment.gov.ng Contact: SEC — [email protected] | CBN — [email protected] Federal Republic of Nigeria — Policy Summary Document | March 2026

Legal Framework

The Sustainable Finance Bill, when enacted, would operate under the Companies and Allied Matters Act 2020, the Banks and Other Financial Institutions Act 2020 (BOFIA), and the Investments and Securities Act 2024. It aligns with the Securities and Exchange Commission's Sustainability Disclosure Rules, the Central Bank of Nigeria Sustainable Finance Roadmap, the Nigerian Exchange Group ESG Disclosure Guidelines, and the Task Force on Climate-Related Financial Disclosures (TCFD) framework.